An SNP quango has handed out £18.4 million to defence firms in the past five years, despite ministers claiming the Scottish Government does not fund companies involved in munitions.
In a move which will deepen a cross-border row over the SNP approach to defence spending, Scottish Enterprise has injected vast amounts of cash into companies which produce military equipment since 2020.
The figures have sparked accusations that First Minister John Swinney and his Cabinet are playing ‘student politics’ and ‘flip-flopping’ to the detriment of the industry in Scotland.
The SNP government is embroiled in a major row over its refusal to support a Rolls-Royce welding centre on the Clyde as it was linked to a Royal Navy ‘attack submarine’.
It has repeatedly said public money should not be spent on military equipment and firms involved in ‘munitions’.
Prime Minister Sir Keir Starmer branded the decision not to fund the centre ‘staggering’ and Defence Secretary John Healey said he could ‘hardly believe’ a Nationalist government would stand in the way of skills development in Scotland.
The conflict deepened last week when ministers were accused of ‘hypocrisy’ for welcoming a new contract to help build a Royal Navy warship awarded to its embattled state-owned shipyard.
Now, in response to a parliamentary question from Scottish Labour deputy leader Jackie Baillie, Scottish Enterprise has admitted that it spent £18.4 million on a number of defence projects.
These include grants handed to firms such as BAE Systems, which makes artillery and tank munitions. Specific projects funded were for upskilling of workers to build naval ships on the Clyde.
Meanwhile, another grant was handed to Thales UK – which makes complex weapons systems including a high velocity missile used by the British Army and the Royal Marines – for a ‘civilian surveillance’ and security project.
Another company given funding to ‘design, test and optimise advanced manufacturing processes’ was Chemring Energetics UK Ltd, which sells explosives and detonating cords.
Ms Baillie said: ‘These figures expose the SNP’s utter hypocrisy. It is right that we support Scotland’s defence industry and the high-skilled jobs it provides, but the SNP’s inconsistent flip-flopping does the industry no favours.
‘The SNP needs to ditch the student politics and admit its ban on munitions funding is incoherent and anti-jobs.’ Scottish Enterprise said it ‘aims to develop good working relationships with many sectors and industries,’ adding: ‘That includes those operating in the defence sector, which employs tens of thousands of people.’
Including a grant to BAE Systems in June worth £9 million, Scottish Enterprise gave £18,463,585 to defence companies in the past five years.
A Scottish Government spokesman said: ‘We recognise the importance of the aerospace, defence and shipbuilding sectors, which is why we have provided over £90 million in funding to companies operating in these sectors since 2006/07.
‘Most recently, the Deputy First Minister [Kate Forbes] welcomed a £9 million Scottish Enterprise grant to BAE Systems to support a training and skills academy.
‘Scottish Enterprise engagement and funding is only provided to support specific projects at Scottish sites and does not include assistance for projects related to the manufacture of munitions.’
