Aerospace giant BAE is part of a consortium that has clinched a £40bn contract to supply 72 Eurofighter Typhoons to Saudi Arabia in the world's biggest defence deal.

The aircraft will replace the Tornados bought by the Saudis under the al-Yamamah oil-for-arms package agreed when Mrs Thatcher was Prime Minister in 1984. The Typhoon transaction will be worth £20bn to BAE over the next 20 years.