Shaun Davies, Labour MP for Telford, said the move could offer significant benefits for the town, and the county.
Rheinmetall BAE Systems Land in Telford is one of the companies set to benefit.
The UK Ministry of Defence has awarded a £1.6 billion, five-year contract extension to Babcock to support British Army equipment, including tanks and armoured vehicles.
The deal will ensure the readiness of military equipment and is intended to strengthen national security.
It will support 1,600 highly skilled jobs in locations across the UK, including more than 400 in Telford.
The investment follows the Prime Minister’s commitment to increase defence spending to 2.5 per cent of GDP.
Commenting after the chancellors visit to Rheinmetall BAE Systems Land (RBSL) in Telford earlier this week, Mr Davies said: “Like so many people across Telford I am incredibly proud that defence organisations like RBSL operate here in Telford providing vital employment opportunities for while manufacturing state-of-the-art tanks and armoured vehicles for the British Army. It’s a true win-win for our local economy and national defence.
“We are living in a dangerous world, and that is why this Labour government has provided our brave men and women of the armed forces with the biggest pay rise in history, alongside the largest increase to the defence budget since the Cold War.
“These are big numbers – but for us here in Telford and across Shropshire, this represents investment in real jobs, new apprenticeships, new skills, and the growth of Telford businesses.
“Telford has long had a proud and strong connection to the defence industry and our armed forces. This government is showing its unwavering support for our local defence firms and the personnel serving in the military. Long may this vital partnership continue.”
