Ministry of Defence spending with Scottish industry rose by 13 per cent in real terms to £2.53 billion in 2025/26, which the department describes as the highest level of industry investment in Scotland since records began, the Ministry of Defence stated.
The figure equates to £460 for every person living in Scotland, up from £390 the previous year, and the department says it forms part of its work to rebuild the national defence industrial base, boost readiness and support the reindustrialisation of Britain.
Wes Streeting, the Defence Secretary, said: “We cannot strengthen our deterrence without a strong, sovereign defence industry here at home, and Scotland is at the heart of that.
“That’s why we are unashamedly backing British, using the biggest sustained increase in defence spending since the Cold War to back jobs and skills in Scotland to build the capability and technology we need to keep us safe in a more dangerous world.”
Douglas Alexander, the Scottish Secretary, said: “The UK Government is delivering a defence dividend for Scotland. Scotland’s defence sector is a powerhouse of innovation and expertise and a key driver for economic growth. With Ministry of Defence annual investment in Scottish industry increasing to £2.53 billion we are backing businesses to grow, supporting the creation of good jobs, driving reindustrialisation and building a stronger economy that creates opportunity.
“From naval shipbuilding on the Clyde and at Rosyth, to our nuclear deterrent and submarine support at Faslane, to our world-leading strengths in cyber, space, advanced radar and electronic warfare, Ministry of Defence investment is directly supporting 12,200 jobs in Scotland and opening exciting career pathways for young Scots.”
According to the department, the figures show rising investment generating jobs and opportunities in towns and cities across the United Kingdom, lifting living standards and increasing household incomes, with the defence industrial base placed at the centre of what it calls national renewal.
The department maintains a substantial footprint in Scotland, supporting 12,200 jobs, with major employers including BAE Systems, Babcock International and Rolls-Royce alongside the military hubs at HM Naval Base Clyde and RAF Lossiemouth.
Much of the Scottish work sits in shipbuilding and submarines, with BAE Systems building the Type 26 frigates at Govan and Scotstoun on the Clyde and Babcock assembling the Type 31 at Rosyth, where four of the five ships are now taking shape. The Norwegian order for Type 26 frigates announced last year is expected to sustain work on the Clyde into the late 2030s.
HM Naval Base Clyde directly employs around 6,000 people across Faslane and Coulport and is home to the Submarine Service, with Project Royal Oak committing £15.1 billion to regenerating the base over the next decade as part of a wider £26 billion programme covering naval base infrastructure.
Just imagine all the jobs and money taken from Scotland and Spent South of The Boarder..!
Just a thought..!
Surely in real terms WW2 created a vast quantity of work in Scotland. Not 2.5BN but the equivalent WW2 money.
I have to say that if the Scots got a shift on then we would be building a lot more in Scotland. Right now I see see the boost is likely to go to Manchester.