Alexander hails ‘defence dividend’ for Scotland from new UK Government strategy

A “defence dividend” from a UK Government strategy will provide a “real boost” to the economy north of the border, the new Scottish Secretary has insisted.

Douglas Alexander welcomed the new Defence Industrial Strategy, which is being backed with £250m of UK-wide investment.

That cash will go on UK Defence Growth Deals – which Defence Secretary John Healey said would build on the strengths regions already have – with Scotland expected to share in the cash.

The new Defence Industrial Strategy comes in the wake of a £10bn deal which will see warships for the Norwegian navy built in Glasgow.

Prime Minister Sir Keir Starmer at a shipyard in Glasgow on Thursday (Andy Buchanan/PA). PA Media

Ministry of Defence spending is already said to support more than 11,000 jobs in Scotland, and the UK Government hopes its “pioneering scheme” will help to “unleash potential” from businesses and research institutions in Scotland.

With a focus on areas such as the space and maritime sectors, it could lead to “cutting edge” research and development work taking place – and also create new jobs north of the border.

Healey insisted that the new strategy will make the UK the best place in the world to start and grow a defence company while putting Britain “at the leading edge of innovation”.

And new Scottish Secretary Alexander said: “The UK Government’s Defence Industrial Strategy will mean a real boost for Scotland’s economy and create highly skilled jobs for years to come.”

Adding that “this is the defence dividend”, Alexander said: “Just last week we saw a £10 billion shipbuilding contract come to Clydeside – that is a fantastic example of what can be achieved with a government committed to ensuring Scotland benefits from the global rise in defence spending.

“Scotland’s defence sector is second to none, and our Defence Industrial Strategy will help ensure it has a thriving future, as part of our Plan for Change.”

Healey meanwhile said: “The Defence Industrial Strategy will make defence an engine for growth in Scotland, backing jobs, industry and innovators.

“Defence Growth Deals offer a new partnership with UK defence to build on industrial and innovation strengths that regions already hold. Together we aim to drive an increase in defence skills and jobs across Scotland. ”

Chancellor Rachel Reeves added: “Through Defence Growth Deals we will unleash the power of local economies while securing our country – building an economy that works for working people, in every part of this country, just as our Plan for Change promised.”