Defence spending with Scottish industry rises above £2.5 billion
Government investment in the Scottish defence sector rose by 13% in real terms to £2.53 billion in 2025/26, marking the highest level of industry investment since records began.
Substantial investment translates to £460 for every person living in Scotland, up from £390 the previous year.
Part of the Government’s work to rebuild the nation’s defence industrial base, boosting defence readiness and the reindustrialisation of Britain.
Communities across Scotland are feeling the benefit of the government’s drive to strengthen Britain’s defence industrial base, new figures reveal.
In a significant boost to the Scottish economy, the figures, which cover the 2025/26 financial year, show a 13% increase in real terms spending, taking the total to £2.53 billion.
As the government accelerates efforts to reindustrialise Britain and strengthen deterrence, there has been a significant boost in investment in the electronics sector by 33%, ensuring UK industry can deliver at scale the modern capability and resilience the armed forces depend on.
The figures demonstrate how the government is placing the defence industrial base at the centre of national renewal, with rising investment generating jobs and opportunities in towns and cities across the UK, lifting living standards and increasing household incomes.
Defence Secretary Wes Streeting MP said:
We cannot strengthen our deterrence without a strong, sovereign defence industry here at home, and Scotland is at the heart of that.
That’s why we are unashamedly backing British, using the biggest sustained increase in defence spending since the Cold War to back jobs and skills in Scotland to build the capability and technology we need to keep us safe in a more dangerous world.
Scottish Secretary Douglas Alexander said:
The UK Government is delivering a defence dividend for Scotland. Scotland’s defence sector is a powerhouse of innovation and expertise and a key driver for economic growth. With Ministry of Defence annual investment in Scottish industry increasing to £2.53 billion, we are backing businesses to grow, supporting the creation of good jobs, driving reindustrialisation, and building a stronger economy that creates opportunity.
From naval shipbuilding on the Clyde and at Rosyth to our nuclear deterrent and submarine support at Faslane, to our world-leading strengths in cyber, space, advanced radar, and electronic warfare, Ministry of Defence investment is directly supporting 12,200 jobs in Scotland and opening exciting career pathways for young Scots.
The figures mark a significant increase on the previous year, representing the highest level of Scottish industry investment since records began. This significant spending equates to £460 for every person in Scotland, up from £390 the year before.
The Ministry of Defence maintains a substantial footprint in Scotland, supporting 12,200 jobs. Scotland is home to a significant defence industrial base, with major employers including BAE Systems, Babcock International, and Rolls-Royce, alongside key military hubs HMNB Clyde and RAF Lossiemouth.
The news builds on the work of the Defence Investment Plan, which commits £298 billion to UK defence over the next four years. The plan will drive sustained investment across British industry, ensuring the UK’s defence sector remains a cornerstone of the country’s economic renewal.
Source: UK Ministry of Defence (2026-09-24T14:37:21+01:00)
