The MOD has confirmed a defence giant with two bases in Gloucestershire has now signed on the dotted line of a £1.25billion deal.

Babcock, which has a base at Tewkesbury and at Gloucestershire Airport, is part of the Arrowhead 400 consortium which has won the contract to build a new generation of Royal Navy frigates.

Value of the deal to build the Type 31e frigates has now also been confirmed at £1.25billion, with each ship costing a cool £250 million and the overall project creating an estimated 2,500 jobs - 150 of those technical apprenticeships.

The boats are understood to be destined to serve maritime missions close to UK shores which would free up the Navy's more advanced Type 26 craft to serve on overseas operations.

In Babcock's own words, the ships will be able to "deliver a range of peacekeeping, humanitarian and warfighting capabilities".

A spokesman for the MOD said: "We have signed a contract with Babcock for the Design and Build of five Type 31 general purpose frigates.

"We expect to have the first ship in the water by 2023, with five ships delivered by the end of 2028."

Whitehall's approved of Babcock's bid was announced in September at the Defence & Security Equipment Show in London, but paperwork on the agreement is now signed off.

Building work will be assigned to Scottish yards with other work being awarded to Plymouth where the firm also has operations.

News has been particularly welcomed at Rosyth in Fife where the contract will reportedly secure hundreds of jobs with work set to begin as early as the end of this year.