UK launches funding package for Scottish defence industry

The UK Ministry of Defence (MoD) has unveiled a new programme for Scotland aimed at boosting innovation and improving links between defence companies, local authorities and research institutions within the defence supply chain. 

Known as the ‘Defence Growth Deal’, the programme is channelling GBP50 million into the region, with GBP10 million earmarked to support specific innovation centres, according to an MoD announcement on 12 March. 

Of the GBP10 million allocated, GBP5 million will go towards the creation of the Arrol Gibb Innovation Campus in Rosyth, a new commercial innovation facility aimed at bringing together defence primes, academia, small companies and local government. 

While the remaining GBP5 million will be used to support the Clyde Engineering and Innovation Centre, near HMNB Clyde. 

The deal is the first of five Defence Growth Deals, initially announced in September, to boost growth across the UK. A total of GBP250 million has been put aside for the scheme as part of the government’s wider efforts outlined in the Defence Industrial Strategy. 

Of the remaining GBP40 million in funding for the Scottish defence industry, an MoD spokesperson informed DSEI Gateway: “The government will work with industry, academia and local and national government to identify interventions that we can invest in to best support [the] defence industry in Scotland.” 

Alongside the GBP50 million funding package, a separate GBP10 million will be channelled into establishing a Defence Technical Excellence College in Scotland. 

Additionally, the government has committed to spending GBP23 million to support small Scottish companies this year, building on a similar sum spent in the 2024–2025 period.