SNP's Double Standards: £18m Grants to Arms Companies

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SNP's Defence Funding Controversy Sparks Political Backlash

A recent revelation has sparked a heated debate over the Scottish National Party's (SNP) approach to defence funding. According to new data, a government agency under the SNP has allocated £18.4 million to defence firms over the past five years. This comes despite claims from ministers that the Scottish Government does not support companies involved in munitions production.

The controversy has intensified a cross-border dispute regarding the SNP’s stance on military spending. Scottish Enterprise, the agency responsible for economic development in Scotland, has been accused of providing significant financial support to companies that manufacture military equipment since 2020. The figures have led to accusations that First Minister John Swinney and his Cabinet are engaging in "student politics" and "flip-flopping," which is seen as detrimental to the industry in Scotland.

This issue has further complicated an ongoing conflict over the refusal to support a Rolls-Royce welding centre on the Clyde, which was linked to a Royal Navy “attack submarine.” The SNP has consistently maintained that public money should not be used for military equipment or firms involved in “munitions.” However, the Prime Minister, Sir Keir Starmer, criticized the decision as “staggering,” while Defence Secretary John Healey expressed disbelief that a nationalist government would hinder skills development in Scotland.

The tension escalated when ministers were accused of hypocrisy for accepting a contract to help build a Royal Navy warship awarded to an embattled state-owned shipyard. In response to a parliamentary question from Scottish Labour deputy leader Jackie Baillie, Scottish Enterprise admitted to spending £18.4 million on various defence projects. These include grants provided to companies such as BAE Systems, which produces artillery and tank munitions. Specific projects funded were aimed at upskilling workers to build naval ships on the Clyde.

Another grant was given to Thales UK, which develops complex weapons systems including a high-velocity missile used by the British Army and the Royal Marines, for a “civilian surveillance” and security project. Additionally, Chemring Energetics UK Ltd, which sells explosives and detonating cords, received funding to design, test, and optimize advanced manufacturing processes.

Baillie stated: “These figures expose the SNP’s utter hypocrisy. It is right that we support Scotland’s defence industry and the high-skilled jobs it provides, but the SNP’s inconsistent flip-flopping does the industry no favours. The SNP needs to ditch the student politics and admit its ban on munitions funding is incoherent and anti-jobs.”

Scottish Enterprise emphasized that it aims to develop good working relationships with many sectors and industries, including those operating in the defence sector, which employs tens of thousands of people. Including a £9 million grant to BAE Systems in June, the total funding provided to defence companies over the past five years amounts to £18,463,585.

A Scottish Government spokesperson said: “We recognize the importance of the aerospace, defence, and shipbuilding sectors, which is why we have provided over £90 million in funding to companies operating in these sectors since 2006/07. Most recently, the Deputy First Minister [Kate Forbes] welcomed a £9 million Scottish Enterprise grant to BAE Systems to support a training and skills academy. Scottish Enterprise engagement and funding is only provided to support specific projects at Scottish sites and does not include assistance for projects related to the manufacture of munitions.”