Scotland risks missing out on increased defense spending due to persistent skills shortages and a potentially damaging approach to the industry by the Scottish National Party (SNP) government, according to a new report by a Westminster committee.
The Scottish Affairs Committee warned that apprenticeships and technical training in Scotland are not keeping pace with future workforce needs, which could hinder the ability to deliver the UK's defense strategy and benefit from increased investment. The report cited industry concerns that SNP government policies have led to negative perceptions of the defense sector, impacting recruitment and business sustainability.
Defence Colleges and Funding
The report also highlighted a point of contention regarding the Defence Technical Excellence College (DTEC). The UK Government has stated that only one DTEC will be built in Scotland unless the Scottish Government matches the funding provided for a second center. Opposition politicians have called this report a "wake-up call" for the SNP government.
Patricia Ferguson, chair of the Scottish Affairs Committee, stated that Scotland has a world-leading defense sector well-positioned to benefit from increased UK defense spending. However, she cautioned that this opportunity could be missed if long-standing skills shortages are not addressed. DTECs, she noted, have the potential to strengthen Scotland's skills pipeline and expand access to high-quality apprenticeships supporting the UK's defense ambitions. The committee expressed hope for collaboration between the UK and Scottish governments to establish both proposed DTECs and to accelerate efforts in developing the necessary skills base.
Ferguson also emphasized the importance of supporting Scottish defense small and medium-sized enterprises (SMEs) by removing barriers to defense supply chains and improving engagement with prime contractors. This, she suggested, would unlock their full potential and ensure the economic benefits of defense investment are realized across Scotland.
Skills Shortages and Industry Concerns
The committee's report identified skills shortages as "one of the most significant challenges facing the sector." It called for greater urgency from both the UK and Scottish governments in addressing this issue collaboratively. The report noted that "negative perceptions of the defence sector continue to affect recruitment and business sustainability," with some witnesses attributing these detrimental perceptions to Scottish Government policies.
As an example, the report mentioned that Babcock had to recruit 300 welders from the Philippines for its Rosyth plant last October due to a lack of skilled applicants from the UK. Concerns were also raised about the Ministry of Defence allocating only £20 million for Wales, Scotland, and Northern Ireland from a £182 million direct skills investment fund, questioning its proportionality to Scotland's defense sector.
Government and Industry Responses
Scottish Conservative deputy leader Rachael Hamilton criticized the SNP government, stating that their "grievance politics and narrow-mindedness have undermined Scotland’s defence sector." She argued that in an uncertain world, the SNP should support investment and jobs in the industry rather than being hostile to it, attributing failures in education and apprenticeship funding to the alarming skills shortage.
Gavin Donoghue, chief executive of Colleges Scotland, welcomed the committee's recognition of skills shortages and stated that colleges are ready to help deliver the vocational and technical education needed for a growing defense industry with the right investment.
A UK Government spokesman affirmed Scotland's status as a "defence industrial powerhouse" already benefiting from increased defense investment. Ministry of Defence spending in Scotland directly supported 12,200 jobs in 2024/25, an increase from the previous year. The spokesman highlighted Scotland's £50 million Defence Growth Deal, including £10 million for two DTECs and other initiatives to develop the skills pipeline. The UK Government continues to urge the Scottish Government to match-fund these colleges to equip young people with the skills for careers in Scotland's defense industries.