The Ministry of Defence is set to sign a £3.5bn deal for nearly 600 new armoured vehicles ahead of the Nato summit in Wales.

The MoD will sign the order for 589 Scout Specialist Vehicles at General Dynamics in Caerphilly county.

David Cameron said the deal would aid UK security and “underpin” many jobs.

At the two-day summit in Newport, due to start on Thursday, the UK will call for increased defence spending by some of Nato’s 28 member states.

Mr Cameron said the Scout deal would be the Army’s largest single order for armoured vehicles for more than 30 years.

“These new vehicles are testament to the world-class engineering skills in south Wales and across the UK, helping to create the Army’s first fully digitalised armoured vehicles,” he said.

“Not only will they be crucial in helping to keep Britain safe, they will also underpin nearly 1,300 jobs across the UK and showcase the strength of the UK’s highly skilled defence sector.”

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