Delivering on ambitions laid out in the National Shipbuilding Strategy Refresh earlier this year, the contract awarded to BAE Systems will support 1,700 British jobs over the next decade at BAE Systems sites in Govan and Scotstoun, Glasgow.

As part of the contract, BAE Systems has committed to invest £1.2 billion in the UK supply chain, supporting a further 2,300 jobs with more than 120 suppliers all over the UK.

Leading the Royal Navy’s anti-submarine warfare surface fleet, the five new City-class ships – HMS Birmingham, HMS Sheffield, HMS Newcastle, HMS Edinburgh and HMS London – will join the first three T26s already in build at Govan – HMS Glasgow, HMS Cardiff and HMS Belfast.

Construction of all eight frigates is expected to be completed by the mid-2030s, with the first, HMS Glasgow, entering service by the end of 2028.

Defence secretary Ben Wallace said: “We are investing in our fleet to ensure our Royal Navy maintains its world-leading capability to protect and defend our nation at sea. This design has already been successfully exported to Australia and Canada, its already proved itself as a world-class maritime capability, securing thousands of UK jobs and strengthening alliances with our allies.

“Supporting thousands of high-skilled jobs in Scotland, and more across the wider UK supply chain, this contract will continue to boost our British shipbuilding industry, galvanising the very best of British engineering, manufacturing and design.”

BAE Systems chief executive officer, Charles Woodburn, added: “This contract secures a critical UK industry and allows us to build on our long history of shipbuilding on the Clyde as we continue to deliver cutting-edge equipment to the Royal Navy into the next decade.

“It underpins the ongoing investments we’re making in the skills, infrastructure and technologies needed to stay at the forefront of the maritime sector and to support the UK Government’s National Shipbuilding Strategy.”

Scottish Affairs Committee chair, Pete Wishart MP, said: “It is positive news today that the UK Government has announced that BAE Systems is to build frigates on the Clyde for the Royal Navy. Scotland is the heart of the UK’s military shipbuilding. This contract continues the drumbeat of orders our Committee has been hearing that the Scottish defence sector needs to continue thriving. While the number of jobs being supported by this contract is very welcome for Scottish communities, it is important that Scottish defence SMEs are not overlooked in the supply chain. In our earlier report on the military landscape in Scotland, we were concerned that Scottish SMEs accounted for only 2.5% of the MoD’s total spending with SMEs.

“We look forward to discussing this – and many other defence issues – with the Defence Secretary when he appears before our Committee next month.”