Defence and clean energy investment set to drive Scottish job growth

The Government has announced increased investment in defence and clean energy, with a focus on supporting existing jobs and creating new employment opportunities, particularly in Scotland.

As part of its latest spending commitments, defence spending is being increased to 2.6% of GDP.

Government estimates suggest this rise could boost the UK’s long-term economic output by 0.3% – around £11bn in today’s terms.

Much of this investment is expected to flow into communities like Moray, where RAF Lossiemouth has become a symbol of defence spending’s impact on local employment.

The Moray base, which has seen significant redevelopment in recent years, now supports collaboration between military personnel and civilian staff to keep advanced aircraft such as fighter jets and submarine-hunting planes operational.

The upcoming addition of three E-7 Wedgetail aircraft to the RAF fleet is expected to further expand the workforce at the base, particularly among Boeing employees, more than 200 of whom are already embedded alongside RAF personnel.

Chancellor Rachel Reeves said: “We’re seizing the huge potential and opportunities that Scotland has on offer.

“Whether it’s in defence to keep the UK safe, or clean energy to power all corners of the country, this government is backing Scotland with billions of pounds of investment to grow the economy and create jobs.”

Figures from 2023/24 show that Ministry of Defence (MOD) expenditure already supports around 26,100 skilled jobs across Scotland. The government’s ambition is to build on this through a combination of infrastructure renewal and support for emerging industries.

At HM Naval Base Clyde, £250m has been committed to the first stage of a long-term renewal programme.

All three Clyde shipyards are currently delivering contracts for the Royal Navy, adding further employment security in the region’s industrial sector.

Scottish Secretary Ian Murray framed this spending as part of a broader “defence dividend.”

He said: “The UK Government is investing in defence to ensure Britain’s security and deter our adversaries and drive economic growth.