The safeguarding of hundreds of shipbuilding jobs on the Clyde has come a step closer after George Osborne outlined plans to build a new warship every two years.
The Chancellor made the announcement came as he outlined his strategy to make the Royal Navy the "most modern in the world".
But Labour called on him to order the ships "sooner rather than later".
Mr Osborne also also confirmed that the new Type 26 global combat ships, expected to be built on the Clyde, would eventually be based in both Portsmouth and Plymouth.
The Chancellor said that the strategy would create and maintain jobs in shipbuilding.
The head of the Navy, First Sea Lord Admiral Sir George Zambellas said the move was a "very significant investment in the UK's shipbuilding future".
He added: "It is also a powerful statement that our nation's global interests will be protected by a credible, world class navy - equipped with fast-jet aircraft carriers, submarines, destroyers and frigates which will be the best and most modern in the world."
Gemma Doyle, the shadow defence minister and MP for West Dunbartonshire, called for more certainty for the industry.
He said: "Labour has always been committed to retaining a sovereign shipbuilding capability and we need certainty over the Type 26 order sooner rather than later.
"When the future of the yards were at risk last year, it was Labour who were making the case that orders from the MoD were integral to safeguarding Scottish shipbuilding jobs. That remains the case.
"Scottish Labour will never stop fighting for contracts for our yards on the Clyde and in Rosyth. "
A further £2m has been allocated to the Royal Navy and Royal Marines Charity to contribute to the rebuilding of the Drumfork Club community centre in Helensburgh.
The Club, almost 50 years old, is designed to provide support for the thousands of personnel who live in married quarters at HM Naval Base Clyde, while their loved ones are away.
Robert Robson, chief executive officer of The Royal Navy and Royal Marines Charity, said: "These grants will enable us to support our sailors and marines and their families far into the future.
"The range of projects that we have identified is wide and the redevelopment of the Drumfork Club in particular is a perfect example of how this funding will be used to create a modern, vibrant, 21st century hub for families."
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