Douglas Alexander, Secretary of State for Scotland, sets out why the UK Labour Government is making defence a new engine of growth — with billions in investment, thousands of skilled jobs, and a sharp contrast to SNP inaction, he argues.
We’re in a changed and more dangerous world. And in recognising and responding to these geopolitical changes, the UK Labour Government is transforming defence into an even more powerful engine for growth for Scotland.
Scotland is a globally recognised centre of defence excellence and when we back our service personnel and Scottish industry, we keep ourselves and our allies secure whilst delivering skilled jobs and growth for communities and workers across the nation.
The first duty as a government is, of course, to keep the country safe. This understanding underpins everything we do in an era where economic security is an essential foundation of national security.
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The stark reality is that the threats we now face are more serious and less predictable than at any time since the Cold War.
This demands nothing less than a new era for UK defence and the UK Labour Government is meeting this responsibility head-on with a historic uplift in defence spending to 2.6% of GDP by April 2027, with the clear ambition to reach 3% in the next Parliament.
This represents billions of pounds of additional investment designed to end the hollowing out of our Armed Forces by previous governments and enable our country to step up, lead in NATO, and take greater responsibility for our collective self-defence.
A MiG 31(Image: )
This increase in defence spending will be felt in Scotland through jobs and growth. Our Defence Industrial Strategy sets out a clear pathway to strengthen our industrial base, boost productivity, and secure highly skilled jobs for workers and communities across Scotland and the UK.
Our Defence Growth Deals are backed by £250 million in total investment and represent a strategic and tangible commitment to unlocking opportunities.
Whilst further details of the Defence Growth Deal for Scotland will be unveiled in the coming months, our vision is clear.
We want to forge long-term partnerships with local partners to unite business and research institutions, harnessing expertise and resources in support of the Armed Forces whilst targeting support that will accelerate innovation, attract investment, and create high-skilled, well-paid jobs in communities.
This approach stands in stark contrast to what we have seen over many years from the SNP Scottish Government when it comes to Scotland’s defence industry.
Earlier this year, the SNP put the creation of a welding skills centre on the Clyde at risk after failing to provide much needed funding.
This centre is vital to supporting Scots into high-paid, high-skilled jobs. But if the SNP Scottish Government chooses not to back Scottish industry or young people, this Labour Government will step in.
This is just one example of the SNP showing they simply have not grasped the scale of the global challenges we face.
While it is welcome that John Swinney has now partially u-turned on his anti-defence policy, we urgently need to see this change in approach actually realised if Scotland is to capitalise on the defence dividend that is coming.
Prime Minister Sir Keir Starmer speaks to ship builders during his visit to BAE Scotstoun shipyard(Image: Andy Buchanan/PA Wire)
Just this month, the Prime Minister announced BAE Systems success in securing a major £10 billion shipbuilding export contract for the Type 26 anti-submarine hunting frigate.
Supporting 2,000 jobs at its shipyards in Glasgow, 103 Scottish businesses – including 54 small and medium enterprises – and a further 2,000 roles across the UK maritime supply chain until the late 2030s, this agreement powerfully demonstrates what can be achieved when government aligns with industry to capitalise on rising defence spending and global demand for UK expertise.
As the previous Minister of State for Trade and Economic Security, I fully understand that building on this success and helping the sector further export its world-class technology around the globe is essential.
Recent figures from trade organisation ADS Scotland showed that the aerospace, defence, security, and space sectors added £3.7 billion to the Scottish economy last year – a remarkable 55% increase from 2020.
Employment has grown by a fifth, with 36,900 people now directly employed in well-paid jobs across these industries in Scotland.
The UK Government is committed to ensuring that Scotland continues at the forefront of these sectors through record investment and our ten-year modern Industrial Strategy.
The UK Labour Government is delivering significant opportunities for Scotland's defence sector and communities across the country.
The numbers speak for themselves. The Ministry of Defence's £2.1 billion annual spend in Scotland supports more than 26,000 skilled jobs, including 11,800 working directly in our industrial base.
We are blessed with a dynamic mix of growth industries, from naval shipbuilding – with eight Type 26 ships being built by BAE Systems in Glasgow and five Type 31 frigates by Babcock International in Rosyth – to a rapidly advancing space sector and next-generation maritime innovation.
World-class academic institutions like the Universities of Glasgow and Strathclyde are creating a fertile environment for defence research and development, ensuring that Scotland remains at the cutting edge of technological advancement.
This ecosystem of research excellence positions Scotland perfectly to benefit even further from our funding uplift.
More investment. More contracts for companies. More skilled jobs. More growth. More money in working people’s pockets.
The defence dividend that will boost the economy for years to come while helping ensure Britain's security and deterring our adversaries.
Douglas Alexander outside No 10(Image: )
At His Majesty's Naval Base Clyde - Scotland’s largest military establishment and second biggest employment site with over 6,500 military and civilian personnel - £250 million of UK Government investment is supporting upgrades to infrastructure and the working environment, ensuring the site is ready to accommodate next-generation nuclear submarines and the Royal Navy’s future attack class.
The ‘Clyde 2070’ project will see significant further UK Government investment over the coming decades to ensure the Royal Navy can deliver the vital Continuous At Sea Deterrent from a modern, efficient base.
As well as creating a better environment for our submariners to live, work, and train in, crucially the investment will generate skilled jobs – including opportunities for small and medium-sized firms – and boost the local economy.
The Government is clear that strategic defence investment must drive broader economic and social benefits and we are working closely with navy chiefs and base staff to ensure that we harness every potential growth dividend from the project for local communities surrounding the Clyde for years to come.
The SNP’s approach to our nuclear deterrent looks ever more out of touch each passing week. Their commitment to unilateral disarmament might have been simply dismissed in calmer and less challenging times, but makes no sense whatever as we witness the greatest challenge to the Euro-Atlantic security environment in decades.
This UK Labour Government stands four square behind our nuclear deterrent and those who enable its operation.
Central to the UK Government’s defence plans are the people who make them possible – not least the men and women who risk their lives for us day and night, all year round.
From the submariners at HMNB Clyde to the airmen and women at RAF Lossiemouth and the Army's 51 Brigade, we are appreciative of and deeply proud of our service personnel.
Their professionalism and bravery are rightly respected worldwide, and it is our duty to back them.
We are matching our words with concrete actions by renewing our country’s contract with those who serve.
By committing an extra £1.5 billion to fix forces family housing, providing the largest pay rise in over 20 years for personnel, and bringing the Armed Forces Covenant fully into law.
Of course here in Scotland we have a proud industrial heritage, but I’m determined that as a U.K. Government we focus resolutely on the future to seize its opportunities and mitigate its risks.
As Secretary of State for Scotland I’m determined to play my part — by both supporting our Armed Forces, and helping ensure that Scotland’s defence industry and its highly skilled workforce secure the defence dividend of the coming uplift in defence expenditures at home and abroad.
Douglas Alexander is the Labour MP for Lothian East and the Secretary of State for Scotland.
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