SNP Scottish Government urged to boost defence sector to become world leader

Scotland must plug its critical skills gap, use technology to improve productivity and forge ahead with hydrogen and battery aircraft trials, according to a trade group representing aerospace, security and defence firms.

ADS, whose members include 160 companies north of the Border, sets out the vision in its inaugural Scotland manifesto for next year’s Holyrood elections.

The group said the sectors were worth £3.7 billion to the Scottish economy, supported nearly 37,000 jobs and were nearly 50 per cent more productive than the UK average.

It also wants more investment in defence, including munitions, and further exploitation of export potential. The group said “decisive action” was required to address the skills crisis by increasing the number and type of apprenticeships.

ADS said areas which should be targeted for further development included small satellite manufacturing, shipbuilding, and maintenance, repair and overhaul.

The calls follow BAE Systems in Glasgow winning a contract to build frigates for the Norwegian navy as part of a £10 billion deal, which could benefit more than 100 Scottish firms.

Loganair agreed a deal last year with Swedish manufacturer Heart Aerospace for it to be the first UK carrier to fly its hybrid battery electric aircraft in Orkney and Shetland.

ADS Scotland director Warrick Malcolm said: “For too long, the sectors have been under supported, under appreciated and overly stigmatised.

“With the appropriate support, Scotland is uniquely positioned to become a global leader in defence and advanced manufacturing.

“At a time of rising geopolitical uncertainty and rapid technological change, our manifesto sets out a clear path for government and industry to collaborate, ensuring Scotland remains at the forefront of innovation, national security, and economic progress.”

Glasgow Labour MSP Paul Sweeney, convener of the Holyrood cross-party group on maritime and shipbuilding, said: “While the SNP’s decision to scrap its ridiculous ban on state support for naval shipbuilding is a welcome first step, the defence industry remains concerned the new policy amounts to a shadow ban of defence firms such as BAE Systems on the River Clyde.

“Staggeringly, the Scottish Government withdrew the £2.5 million needed to open a welding skills centre on the Clyde, forcing the Labour UK Government to step in to support the project which will boost jobs.”

The Scottish Government said defence was a key part of the economy and defended its record since the SNP came to power 18 years ago.

Its spokesperson said: “The defence sector is not only fundamental to our national security, but also a strategic driver of Scotland’s future workforce, supporting high-quality jobs and playing a vital role in driving economic growth across our nation.

“It’s why, since 2006-07, over £90 million has been provided to aerospace, defence, marine and space companies through enterprise agency funding focused on encouraging diversification, and securing high-skilled jobs and economic returns.

“The Scottish Government and its agencies will continue to provide support to the defence sector, including the manufacture of munitions, provided that those companies are able to confirm that they are not supplying to any countries where there is plausible evidence of genocide.

“We are also investing up to £2 million to develop engineering skills in the Glasgow city region.”