Holyrood urged to back MoD deal for Scotland – Daily Business

The UK government is investing billions in Scotland’s defence sector

The Ministry of Defence has handed Scotland a further £50 million boost on condition that the Scottish Government backs the deal.

It includes two new Defence Technical Excellence Colleges (DTECs) costing £10m that will be set up  in the east and west if match funding is provided by Holyrood.

Minister for Defence Readiness and Industry, Luke Pollard, and Scotland Secretary Douglas Alexander today launched the Scotland Defence Growth Deal at the National Manufacturing Institute Scotland.

Mr Alexander said: “If the Scottish Government provide match funding for these two DTECs we will work in consultation with Colleges Scotland to understand which colleges can achieve DTEC status and how we implement this.”

The deal will also include  £5m in support of the Arrol Gibb Innovation Campus, Rosyth and a similar sum to support the Clyde Engineering and Innovation Centre, near HMNB Clyde.

Mr Pollard said: “We pledged a Defence Growth Deal for Scotland and today we are delivering on that commitment. Scotland is not just part of the UK’s defence story - it is vital to it.

“From the Clyde to Rosyth, from Edinburgh to the Highlands, Scottish industry, Scottish workers and Scottish ingenuity are keeping Britain secure. ”

Gavin Donoghue, CEO of Colleges Scotland, welcomed the announcement. He said:   “Today’s announcement of a Defence Technical Excellence College (DTEC) model in Scotland, puts colleges at the heart of defence skills.   

“The East and West DTECs will ensure there is a clear focus on strengthening regional capability and creating skilled employment to support the defence sector, in colleges up and down the country. ”

The MOD spent more than £2 billion in Scotland in 2024/25, directly supporting 11,800 industry jobs and placing 254 contracts with Scottish businesses.

Industry analysis suggests there could be demand fo4 50,000 additional defence jobs across the UK by 2034/35.  

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