Hopes are high for the future of Devon's Appledore Shipyard after the Prime Minister pledged to back British shipbuilding in a £16.5billion funding deal for defence.

John Wood, Chief Executive of Harland and Wolff Appledore said it was ready to deliver 'on time and on budget' ambitions for the UK's defence capability with plans to build at least 13 additional ships to bolster the fleet.

And the shipyard is well in the running for the Fleet Solid Support Warship programme worth around £1.5billion.

Mr Wood said: “We saw the commitment this government and this Prime Minister has to reviving proper British shipbuilding when he visited our Appledore shipyard in August. We look forward to working with government in order to secure the future of our two shipyards, become the centre of excellence for renewable energy fabrication in the UK and build a portfolio of profitable domestic and export oriented contracts.”

In a speech setting out the increase in defence spending over four years, Mr Johnson said on Tuesday that the UK faces a “perilous” period for global security.

The Prime Minister told MPs the UK will once again become Europe’s leading naval power, the RAF will get new hi-tech jets and the military will be modernised.

The plans include the creation of an agency dedicated to artificial intelligence, and a “space command” capable of launching the UK’s first rocket by 2022.

Warships and combat vehicles could be equipped with “inexhaustible” lasers to take on opposing forces, Mr Johnson suggested, with no prospect of them running out of ammunition.

The plans promise to create 40,000 roles and protect 'hundreds and thousands of jobs."

And he made particular mention of Appledore Shipyard in addressing shipbuilding ambitions.

He said: "If there is one policy that strengthens the UK in every possible sense, it is building more ships for the Royal Navy."

"This will spur a renaissance of British ship building across the UK. In Glasgow, and Rosyth, Belfast, and Appledore and Birkenhead. Guaranteeing jobs and illuminating the benefits of the union in the white light of the arc welder's torch."

Mr Wood said that Harland and Wolff was also well placed to further the UK's green ambitions set out in the Green Revolution 10-point plan on Wednesday.

He said: “When we acquired both the Belfast and Appledore shipyards, we set out a vision to unlock the potential of these two critical and strategic facilities.

"It is clear from today’s announcement that there will be substantial packages of work available, with an additional eight Type 26 and five Type 31 vessels being confirmed in addition to Type 32 and other research vessels”

"Harland & Wolff is well in the running for the Fleet Solid Support Warship programme worth circa £1.5bn. Its reclassification as a warship means that the programme has to be led by a British shipyard with a 'significant proportion of the build and assembly work to be carried out in the UK'”.

"As a significant stakeholder in Team Resolute, Harland & Wolff, unlike the current duopoly of defence primes, has the capacity and capability to deliver on this programme on time (or ahead of time) and on budget. Whilst we are friendly disruptors, we will continue to work alongside our competitors to secure the best outcome for British shipbuilding and future generations of school and university leavers.

The name check has been welcomed by Geoffrey Cox, MP for Torridge and West Devon MP.

"Another step in securing Appledore’s shipbuilding future," he tweeted.

The PM visited Appledore at the end of August shortly after news of the reopening was announced by Infrastrata, the company behind Harland and Wolff, which now operates the site. During his visit, he said the shipyard had “massive history but it’s also got a great future”.

“What we want to do is to ensure that there’s a good enough stream of contracts coming through to drive jobs and growth here in Devon,” Mr Johnson said.

Since then, Harland and Wolff has been on a recruitment drive for 350 staff and has has joined with Spanish shipyard and NATO partner Navantia and subcontractor BMT to form ‘Team Resolute’, a UK shipbuilding collaboration which will bid for a range of contracts, including the UK Ministry of Defence Fleet Solid Support Programme.

In October, the Ministry of Defence said plans to build three fleet support warships, set to launch in the spring of next year, will see a “significant proportion of the build and assembly work to be carried out in the UK”.

Tim Jones, Chairman of the South West Business Council and chairman of the Appledore Taskforce, said: "Appledore would consider itself a prime candidate".

The Prime Minister's announcements have been billed as the biggest increase in defence spending since the Cold War and form part of a wider review of the UK’s foreign policy and security objectives which will now not be published until next year.