The UK Government has unveiled a £50 million defence growth deal aimed at strengthening Scotland’s role in advanced engineering, shipbuilding and defence technology.
The initiative, announced by Defence Minister Luke Pollard and Scotland Secretary Douglas Alexander at the National Manufacturing Institute Scotland, includes funding for new innovation facilities and skills programmes designed to support the defence workforce across the country.
The package includes £10 million for two innovation centres linked to Scotland’s defence industry clusters. One facility, the Clyde Engineering and Innovation Centre near HMNB Clyde, will receive £5 million to support work in digital systems, data science and automation. Another £5 million will support the Arrol Gibb Innovation Campus at Rosyth, which will focus on advanced manufacturing and collaboration between industry, universities and smaller firms.
Pollard said the deal would strengthen Scotland’s contribution to the UK defence sector and support emerging technologies. “Scotland is not just part of the UK’s defence story – it is vital to it,” he said. “This £50 million deal will ensure Scotland leads in the technologies that will define the next generation of defence – maritime, space, quantum and advanced engineering.”
The government also announced a £10 million skills package intended to support the creation of two Defence Technical Excellence Colleges, one in eastern Scotland and one in the west. These institutions would provide specialist training in defence engineering and advanced manufacturing, although their establishment depends on match funding from the Scottish Government.
Douglas Alexander said the initiative aims to ensure rising defence spending translates into economic opportunities in Scotland. “The UK Government is delivering a defence dividend for Scotland, creating new skilled jobs, new training places and new opportunities for communities while keeping us and our allies secure,” he said.
Industry groups welcomed the proposal. Warrick Malcolm, Scotland Director at ADS, said strengthening innovation and training capacity would support the sector’s continued growth. “Investment in engineering capability and specialist training can help ensure Scotland continues to deliver the high-value jobs, productivity and technological leadership that our sectors are known for,” he said.
Scotland already hosts a significant share of the UK defence industry, including major facilities operated by companies such as BAE Systems, Leonardo, Raytheon, Babcock and QinetiQ. According to the Ministry of Defence, more than £2 billion was spent with Scottish industry in 2024–25, supporting around 11,800 jobs and more than 250 contracts with businesses in the country.
The government said the growth deal is intended to expand that industrial base, particularly by supporting smaller firms and improving access to new facilities and specialist training.
“defence growth”? I suppose it’s nearly the 1st April. Good luck to the youngsters though.
Wasn’t it Goebbels who said if you repeat things often enough you yourself will come to believe it. Repeat after me…defence is growing 😂