Secretary of State for Scotland Douglas Alexander MP addressed the DPRTE Scottish Defence Procurement and Supply Chain Summit on 20 May, setting out the government’s ambitions for Scottish defence industry and its plans to increase SME participation across defence procurement pipelines.

Alexander, speaking by video link, described Scotland’s contribution to UK defence as spanning naval shipbuilding on the Clyde, submarine support at Faslane, advanced radar and electronic warfare capabilities, and growing strengths in cyber, digital, and space technologies. “Scotland’s companies and skilled workforce continue to deliver the capabilities on which our armed forces rely every day, and as the global security environment becomes increasingly uncertain and volatile, that contribution has literally never been more important.”

He pointed to the government’s commitment to raise defence spending to 2.5% of GDP by 2027 and an ambition to reach 3% in the next parliament as creating real opportunities for Scottish firms. “This investment is about making Britain safer at home and stronger abroad, but it’s also about making defence an engine of growth, driving innovation, strengthening industrial capability, and creating opportunity right across our country.”

SME participation was a central theme as Alexander said smaller firms were often driving the most dynamic innovation in AI, cyber, autonomy, advanced manufacturing, and digital systems, and set out a clear ambition to deliver an additional £2.5 billion in spending with SMEs by May 2028, bringing total investment over the period to £7.5 billion. The recently launched Defence Office for Small Business, described as a single front door for SMEs to engage with defence, alongside a new SME commercial pathway, were cited as practical steps to help firms navigate requirements, identify opportunities, and scale their capabilities.

Alexander also pointed to the £50 million Scottish Defence Growth Deal as a tangible signal of commitment. “The Scottish Defence Growth Deal will support skills, innovation and collaboration, strengthening Scotland’s role in delivering the next generation of defence capability. This tangible investment in your next generation of workers and leaders reflects a deep confidence in Scotland’s industrial future.”

He closed by linking defence investment directly to wider economic and social outcomes. “Defence investment is also investment in jobs, in skills, in apprenticeships, research, and economic growth in communities across Scotland. Above all, it is an investment in the security and resilience of our country.”