Ministry of Defence spending with Scottish industry rose to £2.53 billion in 2025/26, a real-terms increase of 13% on the previous year.
The figures, published on 24 September by the Scotland Office and the Ministry of Defence, represent the highest level of MoD investment in Scottish industry since records began. The spending equates to £460 for every person in Scotland, up from £390 the year before.
They also show a 33% increase in investment in the electronics sector.
Ministry of Defence investment directly supports 12,200 jobs in Scotland. The country’s defence industrial base includes major employers such as BAE Systems, Babcock International and Rolls-Royce, alongside the military hubs of HMNB Clyde and RAF Lossiemouth.
Defence Secretary Wes Streeting said: “We cannot strengthen our deterrence without a strong, sovereign defence industry here at home, and Scotland is at the heart of that.
“That’s why we are unashamedly backing British, using the biggest sustained increase in defence spending since the Cold War to back jobs and skills in Scotland to build the capability and technology we need to keep us safe in a more dangerous world.”
Scottish Secretary Douglas Alexander said: “The UK Government is delivering a defence dividend for Scotland. Scotland’s defence sector is a powerhouse of innovation and expertise and a key driver for economic growth.
“With Ministry of Defence annual investment in Scottish industry increasing to £2.53 billion we are backing businesses to grow, supporting the creation of good jobs, driving reindustrialisation and building a stronger economy that creates opportunity.”
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He pointed to naval shipbuilding on the Clyde and at Rosyth, the nuclear deterrent and submarine support at Faslane, and Scottish strengths in cyber, space, advanced radar and electronic warfare.
The UK Government presents the increase as part of its work to rebuild the country’s defence industrial base, strengthen defence readiness and support the reindustrialisation of Britain. The figures follow the Defence Investment Plan, which commits £298 billion to UK defence over the next four years.
