Greene: Scottish Government must realise economic potential of defence spending
To mark Armed Forces Day, Scottish Liberal Democrat economy spokesperson Jamie Greene MSP has written to the Deputy First Minister urging her to ensure the Scottish Government realises the economic potential of increases in the defence budget.
In June, the UK Chancellor announced that UK defence spending would rise to 2.6% by April 2027.
The increase comes after Liberal Democrat calls in January for a clear roadmap to 3% defence spending, as well as for the government to commit to a full reversal of the Conservatives’ cut of 10,000 troops.
The UK Government's defence spending increase includes a promised £250 million over three years on the Faslane submarine base in the West of Scotland. It also includes a £4.5 billion munitions investment in several sites across the UK, including Glasgow.
It has also been reported that billions of pounds will need to be invested with established Scottish tech companies to develop drones, satellites, battlefield communications systems, missiles and guidance systems over the next decade.
The text of Mr Greene’s letter to the Deputy First Minister, Kate Forbes, is as follows:
Dear Kate,
I am writing to you following the UK Government’s Spending Review, which has allocated a significant portion of increases in defence spending to Scotland. This includes a promised £250 million over three years on the Faslane submarine base in the West of Scotland.
Scotland’s defence industry currently supports more than 14,000 jobs and generated £1bn for the economy in 2023 alone. It is a critical source of employment not only in my own region along the Clyde, but also in areas like Prestwick, Edinburgh and Dundee amongst others.
If those communities are to reap the benefits of this spending increase, and I believe they should, the Scottish Government must also play its part in realising that economic potential. That means creating the right environment for jobs and investment as well as tackling obstacles that could otherwise dampen those opportunities.
At the moment there are worrying gaps in Scotland’s skills pipeline. The Liberal Democrats have repeatedly raised the issue of teacher shortages in key subjects including maths, chemistry, physics, biology and computer sciences, all of which are vital to developing the skills which will be required by the defence sector.
That situation has been made no easier by the somewhat confused stance the Scottish Government takes on matters of national security and its support for the defence industry in Scotland, by way of example Scottish Enterprise declining to support the proposed Rolls-Royce ‘welding skills’ centre in Glasgow. There is also an increasingly anti-sector narrative being used in the language of politics, and sadly government.
Like many others, I am concerned this creates an unwelcome environment for businesses who might otherwise invest in our defence industry here, as well as for those considering a career in it.
In light of this can I ask for:
- An update on what exactly the Scottish Government is doing to facilitate and encourage businesses to invest in the Scotland’s defence industry,
- An outline as to what steps the Scottish Government is taking to address the current lack of teachers in key STEM subjects across Scotland and,
- Clarity on whether or the not the Scottish Government believes that there should be an ongoing and thriving defence sector in Scotland.
It is incumbent on the Scottish Government to use its available powers to foster a conducive environment for employment, investment and growth.
The defence sector, coupled with our armed forces presence, contributes financially, educationally and socially in the communities they operate in. I hope on that point we have agreement as to their importance and in making them feel welcome in Scotland.
Yours sincerely,
Jamie Greene MSP