Scotland could miss out on increased UK defence spending unless persistent skills shortages are addressed, and the Scottish National Party government's negative approach to the industry may be damaging jobs, a new report from the Scottish Affairs Committee warns.
The Westminster committee found that apprenticeships and technical training in Scotland are not keeping pace with future workforce needs, which it said would harm the country's ability to deliver the UK defence strategy and benefit from rising investment.
The report cited industry concerns that Scottish Government policies have led to negative perceptions of the defence sector that continue to affect recruitment and business sustainability.
It also revealed that the UK Government has said only one defence technical excellence college, or DTEC, will be built in Scotland unless the Scottish Government matches the funding it has provided to create a second centre.
Committee chair's warning
Patricia Ferguson, chairman of the Scottish Affairs Committee, said Scotland has a world-leading defence sector and is well-placed to benefit from increased UK defence spending, but warned that opportunity could be missed unless long-standing skills shortages are addressed.
She said one of the main ways skills training can be expanded is through DTECs, which have the potential to strengthen Scotland's skills pipeline and widen access to high-quality apprenticeships supporting UK defence ambitions. The committee hopes to see the UK and Scottish governments work together to deliver both proposed DTECs in Scotland, she said, and more widely for Scotland to accelerate work to build the skills base its defence sector needs.
Ferguson added that it is also important for Scottish defence small and medium-sized enterprises to get the support they need to grow, saying removing barriers to defence supply chains and improving engagement with prime contractors would help unlock their full potential and spread the economic benefits of defence investment across Scotland.
Skills shortage 'one of the most significant challenges'
The committee's report, published on Tuesday, found that increased investment in defence has the potential to create highly skilled jobs in Scotland, strengthen supply chains and support economic growth.
But it found that skills shortages are one of the most significant challenges facing the sector, and called for the UK and Scottish governments to work together with greater urgency to address the issue.
The committee's report stated that it heard negative perceptions of the defence sector continue to affect recruitment and business sustainability, and that some witnesses expressed a view that Scottish Government policies have also contributed to detrimental perceptions.
The report highlighted that defence contractor Babcock had to hire 300 welders from the Philippines to work at its Rosyth plant last October because of a lack of skilled applicants from the UK.
It also raised concerns about the Ministry of Defence allocating only £20 million for Wales, Scotland and Northern Ireland from a £182 million direct skills investment fund, and demanded an explanation of how that figure is commensurate with the size, importance and potential of Scotland's defence sector.
The report said that if the Scottish Government does not provide matched funding to create a second DTEC, an important opportunity will be lost.
Political reaction
Scottish Conservative deputy leader and business spokesman Rachael Hamilton said the report must be a wake-up call for First Minister John Swinney and the SNP government, saying their grievance politics and narrow-mindedness have undermined Scotland's defence sector, which she called vital for jobs and Scotland's economy.
Hamilton said that in an increasingly uncertain world, nationalists should be doing all they can to support investment and jobs in the industry, but instead have been hostile to it. She said the Scottish Government's failures in education and funding apprenticeship places are directly behind the alarming skills shortage in Scotland's workforce.
She added that both of Scotland's governments must urgently work together to boost defence spending, back the thousands of jobs the sector supports and prioritise protecting national security.
Gavin Donoghue, chief executive of Colleges Scotland, welcomed the committee's recognition that skills shortages are one of the most significant challenges facing the defence sector in Scotland. He said colleges are Scotland's skills engines and, with the right investment, stand ready to help deliver the vocational and technical education needed for a growing defence industry.
UK Government response
A UK Government spokesman said Scotland is a defence industrial powerhouse and is already benefiting from increased defence investment, adding that Ministry of Defence spending with industry in Scotland directly supported 12,200 jobs in 2024/25, up from 11,400 the previous year.
The spokesman said the government recognises that developing the skilled workforce needed to support Scotland's growing defence sector is essential to building on that success, which is why it launched Scotland's £50 million Defence Growth Deal, including £10 million support for two Defence Technical Excellence Colleges and wider initiatives to help develop the skills pipeline needed for future defence jobs, innovation and economic growth.
The UK Government said it continues to urge the Scottish Government to match fund the colleges so young people gain the skills they need to secure high-skilled, well-paid careers in Scotland's defence industries.
The Scottish Government was asked for comment.
