UK signs 390 mln stg contract for military vehicle support

LONDON, July 23 (Reuters) - Britain has awarded a 390 million pound ($610.35 million)contract to General Dynamics to provide maintenance and support services to the new armoured tank vehicles it has on order.

The government last year signed a 3.5 billion pound deal with the same company to buy 589 Scout Specialist Vehicles.

Defence companies which supply Britain with equipment were bouyed earlier this month when the government committed to meeting NATO's defence spending pledge of two percent of GDP for the next five years.

The announcement comes after years of cuts - Britain has reduced defence spending by about 8 percent in real terms since 2010 to help cut a record budget deficit.

The contract announced on Thursday would extend a current arrangement to 2024 and as a result, U.S. company General Dynamics would move vehicle testing and assembly to its base in Wales, creating 250 jobs in the region.

($1 = 0.6390 pounds) (Reporting by Sarah Young; editing by Kate Holton)