Royal Navy shipbuilding boosts Scottish economy

Scottish small and medium enterprises (SMEs) played a key role in discussions about the UK government’s Defence Industrial Strategy during a visit by Minister for Defence Procurement and Industry, Maria Eagle MP, to Babcock’s Rosyth site, according to a government release.

The roundtable event with local SMEs, held on 11 February 2025, explored the challenges and opportunities within Scotland’s shipbuilding sector.

Minister Eagle said that the upcoming Defence Industrial Strategy, which is under consultation until the end of February, aims to create a more integrated and resilient supply chain across the UK.

Babcock has invested £200 million into its Rosyth shipyard over the past decade, including constructing a state-of-the-art assembly hall that allows for the simultaneous production of two Type 31 frigates. The shipyard’s Type 31 programme has created and sustained 2,500 skilled jobs, with Minister Eagle highlighting the broader economic benefits of defence spending.

“It was great to visit Rosyth and witness first-hand their world-class shipbuilding programme which will strengthen our national security into the future, whilst boosting jobs and small and medium-sized businesses across Scotland,” said Maria Eagle MP.

The Type 31 programme, which began following Babcock’s contract award in 2019, forms part of the UK’s broader Plan for Change initiative. Designed as general-purpose frigates, the Type 31s will perform a variety of roles, including humanitarian missions, intelligence gathering, and maritime defence operations.

Babcock’s Arrowhead 140 design, the basis for the Type 31 class, has already attracted international interest, with export successes in Poland and Indonesia. Construction is currently underway on HMS Formidable, the third of the five planned frigates in the Inspiration Class.