Babcock, which manages HMNB Clyde, will now continue the delivery of their services at the base until March 2020, safeguarding 1,500 jobs.

The money will be used to maintain and repair the Royal Navy’s 56 warships and submarines for the next five years.

A contract of £2.6bn was awarded to Babcock, who also manage HMNB Devonport, while BAE Systems, which manages the Portsmouth Naval Base, was awarded a £600m. The deal will secure about 7,500 across all three bases and brings five existing contracts under one framework.

Speaking to the Reporter from Queen’s Harbour Master operational port on Wednesday, Naval Base Commander Commodore Keith Beckett said he was ‘delighted’ at the ‘strategic investment’.

He added: “People here locally will see a continuum of investment. This is just one step on the route to becoming the single integrated submarine operating base and this underpins the vital support we get from skilled workers and contractors who operate and maintain the site on my behalf.” Commodore Beckett also paid tribute to the wide-reaching impact of the deal in terms of supporting contractors from the surrounding area, and the development of infrastructure. He said: “Overall the strategic contract which will take us into the next decade has to be good news for the region.

“Although not necessarily linked to this particular contract, the base is growing in both activity and the number of people employed here and to do that you do need to invest in infrastructure.

“You can see on site here at the Clyde we are investing in new accommodation and we have a project under way to invest in new training facilities and to update the facilities we already have to be ready for the end of the transition into the home of UK submarine service.” The announcement came just two week’s after Scotland voted to remain within the UK at the national referendum, however Commodore Beckett claimed the planning behind the investment had been going on for some time.

The deal, which is thought to be saving UK taxpayers more than £350m, is the ‘second biggest defence contract placed by this Government’ according to Defence Secretary Michael Fallon.

Mr Fallon added: “Following the £3.5bn Scout armoured vehicle contract, this is the second biggest defence contract placed by this government and reflects our commitment to giving our armed forces what they need to keep Britain safe.” Babcock issued a statement saying: "This new contract reinforces Babcock’s position as the UK’s leading naval support business and enables us to continue to do what we do best, that is to provide continuity, reliability and increased value to our customer across the range of activities and services we deliver.

“Importantly, the finalisation of the MSDF contract cements Babcock’s long term partnering relationship with the MoD and Royal Navy on the Clyde.”