Council welcomes £1.6bn UK defence deal

The deal with Babcock will include the maintenance of Challenger 2 tanks

Telford and Wrekin Council has welcomed news of a £1.6bn government investment in UK defence that is expected to include safeguarding 400 jobs in the town.

The five-year contract extension with national defence firm Babcock will cover the maintenance and repair of Challenger 2 tanks, artillery guns and armoured vehicles.

The Ministry of Defence (MoD) revealed the deal hours before Chancellor Rachel Reeves outlined an increase in defence spending as well as cuts to the welfare bill, in her Spring Statement.

Telford is a key hub for defence engineering and supply firms and council leader Lee Carter is looking to build on the authority's "well-established relationship" with the MoD.

He said Telford was ready to play its role "in the security of the nation", while the local authority was keen to secure "good quality defence sector jobs for residents".

Babcock Chief Executive David Lockwood, said the deal would safeguard 1,600 jobs nationwide and thousands more in the supply chain.

Reeves was in Telford on Tuesday, visiting another defence firm Rheinmetall BAE Systems Land Ltd, which has the contract for upgrading Challenger 2 tanks to Challenger 3s.

Speaking to BBC Radio Shropshire, Armed Forces Minister Luke Pollard said the deal with Babcock was a "vote of confidence" in the skills of workers in Telford and further afield.

He said it would "help make sure our military units are deployable to meet the challenges we face in this more uncertain world".

"Defence can be an engine for growth across the country," he added.

Reeves announced on Wednesday that defence spending would rise by an extra £2.2bn next year and reach 2.5% of GDP by 2027.