Thousands of jobs will be supported by a key defence contract for the Faslane nuclear deterrent on the Clyde.

The Labour government yesterday confirmed that three floating docks for the HM Naval Base Clyde will be built in the UK.

One of the contenders for the project at Faslane is the Methil shipyard in Fife, which is owned by Spanish state-owned firm Navantia.

It was also announced that Rolls-Royce will invest £300million across four UK plants, including Glasgow.

Defence Secretary Wes Streeting told the Labour conference in Liverpool: ‘Every pound the Ministry of Defence spends must be spent well.

‘And so today I make a promise: the Ministry of Defence I lead will be at the heart of our Prime Minister’s mission to reindustrialise Britain.’

He said there is no economic or moral reason for the defence sector to hire thousands of workers from abroad when one million young people in the UK are out of work.

He added: ‘But solving that problem needs more than words, it demands bold action. And that’s why today the Chancellor and I are taking one of the biggest defence procurement decisions in a generation.

The government confirmed that three floating docks for the HM Naval Base Clyde at Faslane will be built in the UK

‘The contract to build the docks for our nuclear subs, our ultimate deterrent – £6 billion worth of work – today we commit to that country staying in this country, supporting thousands of British jobs for years to come.

‘That is what growth in every postcode means in practice: backing Britain by buying British.’

Chancellor John Healey also said £6billion of contracts for British shipyards will build new docks for submarines ‘to defend us all for decades to come’.

He also announced that Rolls-Royce will invest £300million in plants in Derby, Bristol, Glasgow and Rotherham.

He told the conference: ‘This is the new age of industrialisation, this is the new confidence in Britain lit by this Government, driven forward by business.’

Referring to the Methil shipyard, Scottish Secretary Douglas Alexander said: ‘It was under immediate threat of administration when we gained power, that’s why a deal was brokered to bring it into the ownership of Navantia.

‘Navantia have been looking for us to guarantee work going forward, what we heard from John Healey today was a commitment that we will build the new floating docks for Faslane here in the United Kingdom.

‘That’s a huge opportunity for Methil, as surely as it is an opportunity for other yards across the UK.

‘That’s the kind of practical help I think Scottish workers want to see.’

Defence Secretary Wes Streeting told the Labour conference that the MoD would be at the heart of reindustrialising Britain

Asked if he could guarantee the work would be carried out north of the Border, Mr Alexander said: ‘There’s a proper procurement process that needs to be followed, but I have great confidence in Scottish workers and Scottish yards.

‘There are huge opportunities and a defence dividend that come from being part of the United Kingdom and what we heard from John Healey today was just the latest step on that journey.’

Mr Alexander also told Politico that the floating docks was ‘an urgent national priority’.

He said: ‘Many of us have been discussing within government how best to secure that procurement. Truthfully, it is great news for British yards that we are able to see that work commissioned and undertaken here, within the United Kingdom.

‘I’m certainly optimistic about what that means for Scotland.’

He said he having conversations in private about ensuring the work happens in Scotland.