The Scottish Government is developing a new Defence Industrial Growth Programme intended to increase the economic benefit Scotland receives from defence, with ministers pointing to security pressures, high-value employment and the need to strengthen long-term industrial resilience.
The commitment appears in the Programme for Government, which says ministers will “establish a responsible defence industrial growth programme to maximise the economic benefits to Scotland from increased UK and allied defence spending.”
A Scottish Government spokesperson told the UK Defence Journal: “Scotland is well placed to seize the opportunity of increased UK defence spending with a highly skilled workforce, world-class universities and internationally recognised manufacturing. The conflict in Ukraine is a reminder of the increasingly complex and immediate threats we face, underlining the importance of maintaining a strong and resilient defence capability.
“Our aerospace, defence, security and space sectors contribute around £3.7 billion to the economy and support approximately 37,000 jobs. We can maximise the economic benefits of these sectors through a responsible approach while supporting innovation, skills development and building long-term economic resilience.
“The Cabinet Secretary for Economy will meet with representatives from across the sector to discuss how the Defence Industrial Growth Programme can maximise the economic benefits arising from increased UK and allied defence spending, supporting economic growth, high-value jobs and national resilience. Further details of the Programme will be announced in due course.”
Defence procurement remains reserved to the UK Government, but the Scottish Government and Parliament control a number of areas which affect the industrial base, including skills, economic development, business support, research and innovation.
Scotland already hosts substantial parts of the UK defence industry. BAE Systems is building Type 26 anti-submarine warfare frigates on the Clyde, while Babcock is constructing Type 31 frigates at Rosyth. The wider sector also includes radar, optronics, aerospace, underwater systems, engineering and other defence supply-chain activity.
SNP Westminster leader Dave Doogan said the programme would operate against a wider backdrop of pressure on defence spending and procurement.
Doogan told me: “There is an awkward truth at the centre of Andy Burnham’s new government which is that his new chancellor appears unable to provide the quantum to invest in defence that he, as Defence Secretary, resigned in protest over. This matters across the defence industrial complex and that includes here in Scotland. When a government is self-evidently unable to fund its own defence obligations it does not inspire the private investment in people or capital that our sector requires.
Confidence in Scottish defence product in our allies has never been higher across all domains and the MOD must capitalise on this with base load orders placed in good time and in full rather than piecemeal treasury drip feeding. Mr Burnham says Westminster isn’t working and he wants to change things, he could start by injecting some much needed pace and ambition into defence procurement.”
Former SNP defence spokesman Stewart McDonald also welcomed the announcement and highlighted the powers already available to the Scottish Government and Parliament in areas surrounding defence industry.
McDonald told me: “This is a welcome and, in some ways, overdue announcement from the Scottish Government. It’s welcome because it’s the pursuit of our own domestic security interests and that of our allies and partners, but also in terms of our domestic economic interest. Defence may be reserved but the Scottish Government and Parliament have considerable powers that can ensure Scotland’s defence sector is operating at full pace – particularly around skills, R&D, public finance and innovation.
“The key is to ensure the defence programme is agile, inclusive of key strategic partners and wastes no time in getting to work. I’m looking forward to seeing how it pans out.”
The Scottish Government has not yet set out the level of funding attached to the programme or the specific forms of support that will be offered. Ministers say the Cabinet Secretary for Economy will meet representatives from across the sector before further details are announced.
That’s nice of them. So the British government gets criticised, the SNP orders abroad but now they have a strategy. Wow. 🤔🙃