Scotland at the heart of defence investment as small and medium businesses get a seat at the table
Source: gov.uk (2025-08-08)

The contribution of Scottish SMEs to the UK’s national security was recognised during a roundtable held yesterday at Edinburgh’s Queen Elizabeth House, chaired by Defence Minister Lord Coaker following his visit to the Edinburgh Royal Military Tattoo.

Small and medium-sized businesses (SMEs) take part in Government roundtable in Edinburgh, discussing how defence can boost growth in Scotland.

Chaired by UK Defence Minister Lord Coaker, the roundtable follows the MoD’s commitment to spend £7.5 billion with SMEs by 2028.

Scotland is at the heart of UK’s defence industry, keeping the UK safe at home and strong abroad, delivering on the Government’s Plan for Change.

The Minister met with representatives from eight companies, from Stirling to Forfar, to discuss their innovative work that helps keeps the country safe.

Ahead of the upcoming Defence Industrial Strategy, the government has announced the intent to increase spending with SMEs by £2.5 billion over the next three years, reversing the fall that was recorded before last year’s election. This government’s commitment to SMEs recognises the vital role they play at all levels within the defence supply-chain – both directly and indirectly –with a total of £7.5 billion to be spent with SMEs by 2028.

Defence Minister Lord Coaker said:

It was fantastic to meet many innovative Scottish companies who play a crucial role in strengthening our national security, boosting growth and providing jobs in their local communities.

Businesses in Scotland will be among those who can benefit from the £2.5 billion increase in SME spending that we will deliver, helping drive defence as an engine for economic growth – as we deliver on our Plan for Change.

As well as being home to thousands of military personnel and major bases, defence is a key driver for renewal in Scotland, with latest statistics showing that the MOD spends more than £2 billion a year with the defence sector in Scotland, supporting nearly 12,000 industry jobs.

Scottish Secretary, Ian Murray said:

We are proud of Scotland’s defence sector and we will always stand up for the industry and workforce. The UK Government’s historic uplift in defence spending will see a huge defence dividend for Scotland which will help ensure Britain’s security, deter our adversaries and drive economic growth for years to come as part of our Plan for Change.

Through events such as today’s roundtable we are working closely with industry and supply chains to maximise Scotland’s defence dividend. Our new Brand Scotland campaign will seek to build on that success and help the sector export its world class technology around the world.

Programmes including the multi-billion pound redevelopment programme (https://gbr01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.gov.uk%2Fgovernment%2Fnews%2Fscottish-defence-dividend-250m-investment-launched&data=05%7C02%7CGioia.Casale100%40mod.gov.uk%7C58801487020045302fbf08ddd50b7d34%7Cbe7760ed5953484bae95d0a16dfa09e5%7C0%7C0%7C638900967517189201%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&sdata=cEYiUSRjaxxk4H0xIzexIV%2FNpe5uTvvH5wx%2BTNV3TTk%3D&reserved=0) for His Majesty’s Naval Base Clyde will also create skilled jobs - including for small and medium size firms - to boost the economy while addressing the critical skills gaps facing the country.

As outlined in the Strategic Defence Review, the private sector, including small and medium businesses, are key to unlocking defence innovation, giving the UK and its allies the fighting edge. The upcoming Defence Industrial Strategy will provide further detail into future collaboration between Government and industry across the UK.