Scotland is the only part of the UK to have seen an increase in year-on-year spending in each year since 2013/14 to £2.1bn, supporting around 12,400 direct jobs in Scotland according to Ministry of Defence figures.
Direct jobs supported by MoD expenditure in Scotland has increased by 22%.
Compared to the previous year, Scottish expenditure increased by almost 15% in 2019/20 and its regional total now accounts for a little over 10% of all MoD expenditure with UK industry.
The Ministry of Defence say that this was driven principally by increased in-year payments to BAE Systems Surface Ships Ltd relating to the manufacture and demonstration phase of the Type 26 frigate programme out of the company’s Glasgow shipyards.
“In the case of Scotland, and compared to the year before, total MOD expenditure in the region was substantially higher in 2019/20. The higher payments discussed earlier in the Shipbuilding sector accounted for an additional 1,300 MOD supported jobs in the industry. Meanwhile, provisions for P-8A infrastructure at RAF Lossiemouth and the replacement of the Glen Mallan Northern Ammunition Jetty has strengthened jobs supported in the Construction industry by a further 700 FTE jobs.
As a result, direct jobs supported in Scotland climbed from 480 jobs per 100,000 in 2018/19 to 590 jobs per 100,000 in 2019/20. These variations in estimated employee numbers and overall regional employment resulted in the only changes to the regional ranking positions for jobs supported per 100,000 people in FTE employment whereby Scotland overtook Wales to sit in third place.”
The total number of direct jobs supported by MOD expenditure has increased by 8,000. Matching the regional expenditure increases seen for 2019/20, this was mostly spread across four regions; the South West, the South East, Scotland and the North West. Much like with the expenditure figures also, the South East and South West account for over half of all the MOD supported direct jobs in the UK.
Interestingly, despite decreases in year-on-year expenditure between 2018/19 and 2019/20, both the East of England and Yorkshire and The Humber saw a rise in direct jobs supported.
You can read the full report spending report here.