A £51 million contract to build new homes in Stafford for soldiers and their families returning from Germany has been announced today by Defence Minister Andrew Murrison.

The contract will see the construction of 346 homes for soldiers based at Beacon Barracks in Staffordand is a step towards establishing the town as one of the Army’s seven major concentrations of manpower.

It follows the announcement in October 2013 of a £100 million contract to carry out a major redevelopment of the barracks. Stafford will be the new home of two Signals regiments returning from Germany, bringing three Signal regiments together on one site.

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The homes should be complete by summer 2015 when troops from 16 Signal Regiment and 1 Armoured Division Signal Regiment will move to Beacon Barracks allowing for the closure of Rhine Garrison by the following March.

Mr Murrison said: "This significant investment in Stafford further demonstrates that we are determined to provide the best possible accommodation for our soldiers and their families. Bringing troops back from Germany will save more than £350 million a year in running costs, make best use of the Defence estate and provide a boost to the UK economy."

The contract was awarded to Lovell Partnerships Ltd, whose regional office is in Birmingham and head office in Tamworth, by the Defence Infrastructure Organisation, which manages and maintains land and property for the MOD.

The investment is in addition to the £1.8 billion announced last March by the Defence Secretary Philip Hammond for the Army Rebasing Plan, which will see 15,000 personnel return to the UK from Germany by 2020, £20 million of which will be spent in the West Midlands.

(CD/IT)