Defence spending with Scottish industry rises above £2.5 billion

Government investment in Scottish defence sector rose by 13% in real terms to £2.53 billion in 2025/26, marking the highest level of industry investment since records began. 

Substantial investment translates to £460 for every person living in Scotland up from £390 the previous year. 

Part of  Government’s work to rebuild the nation’s defence industrial base, boosting defence readiness and the reindustrialisation of Britain. 

Communities across Scotland are feeling the benefit of the government’s drive to strengthen Britain’s defence industrial base, new figures reveal.

In a significant boost to the Scottish economy, the figures, which cover the 2025/26 financial year, show a 13% increase in real terms spending, taking the total to £2.53 billion.

As the government accelerates efforts to reindustrialise Britain and strengthen deterrence, there has been a significant boost in investment in the electronics sector by 33%, ensuring UK industry can deliver at scale the modern capability and resilience the armed forces depend on.

The figures demonstrate how the government is placing the defence industrial base at the centre of national renewal, with rising investment generating jobs and opportunities in towns and cities across the UK, lifting living standards and increasing household incomes.

Defence Secretary, Wes Streeting MP, said:

We cannot strengthen our deterrence without a strong, sovereign defence industry here at home, and Scotland is at the heart of that.

That’s why we are unashamedly backing British, using the biggest sustained increase in defence spending since the Cold War to back jobs and skills in Scotland to build the capability and technology we need to keep us safe in a more dangerous world.

Scottish Secretary Douglas Alexander said: