Tag: defence spending

Spending Review: £ Billions to back Scottish jobs

UK Government’s Plan for Change delivers record settlement for Scottish Government with an extra £9.1 billion over the SR period to deliver public services

Working people across Scotland will benefit from significant investment in clean energy and innovation, creating thousands of high-skilled jobs and strengthening Scotland’s position as the home of the United Kingdom’s clean energy revolution.  

The UK Government has confirmed £8.3 billion in funding for GB Energy-Nuclear and GB Energy in Aberdeen. This is alongside an increased commitment to the Acorn Carbon Capture, Usage and Storage project, which will receive development funding.

The Spending Review, outlined yesterday, Wednesday 11 June, announces targeted investment in Scotland’s most promising sectors to grow the economy and put more money in working people’s pockets.  It delivers an extra £9.1 billion over Phase 2 of the Spending Review, through the Barnett formula.

The government also confirmed £25 million for the Inverness and Cromarty Firth Freeport.   

These investments are part of a wider package, with funding for hydrogen production projects at Cromarty and Whitelee.

Secretary of State for Scotland, Ian Murray, said:  “Putting more money in the pockets of working Scots by investing in the country’s renewal is at the heart of this Spending Review and our Plan for Change.

“The Chancellor has unleashed a new era of growth for Scotland, confirming billions of pounds of investment in clean energy – including new development funding for Acorn – creating thousands of high-skilled jobs.

“Scotland’s leading role at the heart of UK defence policy has been strengthened and there is also significant investment in our trailblazing innovation, research and development sectors.

“And the Scotland Office will work with local partners to ensure hundreds of millions of pounds of new targeted support for Scottish communities and businesses goes to projects that matter to local people. This means that the UK Government is now investing almost £1.7 billion in dozens of important growth schemes across Scotland over 10 years.

“To maximise the benefit of recent trade deals with India, US and the EU we are continuing the Brand Scotland programme to promote inward investment opportunities boosting Scottish exports of our globally celebrated products.

“And we are delivering a record real-terms funding settlement for the Scottish Government with an extra £9.1 billion over the Spending Review period through the Barnett formula. That’s more money than ever before for them to invest in Scottish public services like our NHS, police, housing and schools.

“This is a historic Spending Review for Scotland that chooses investment over decline and delivers on the promise that there would be no return to austerity.”

Investment in Scotland to strengthen UK defence  

Speaking in the House of Commons yesterday, the Chancellor reaffirmed the government’s commitment to increase defence spending to 2.6% of GDP by April 2027, backing our Armed Forces, creating British jobs in British industries, and prioritising the security of Britain when it is most needed.  

The long-term future of the Clyde is secured through an initial £250 million investment over three years which will begin a multi-decade, multi-billion pound redevelopment of HM Naval Base Clyde through the ‘Clyde 2070’ programme.   

Investing in innovation and R&D  

Scotland will also become home to the UK’s largest and most powerful supercomputer, with up to £750 million committed to its development at Edinburgh University. This world-class facility will give scientists across all UK universities access to extraordinary computer power, further strengthening Scotland’s research and innovation capability.   

The UK Government is backing Scottish industry with a share of increased UK-wide R&D spending set to grow from £20.4 billion in 2025-26 to over £22.6 billion per year by 2029-30. Scotland will also benefit from a £410 million UK-wide Local Innovation Partnerships Fund.  

Targeted support for Scottish communities   

The government is also investing £160 million over 10 years for Investment Zones in the North East of Scotland and in Glasgow City Region, and confirming £452 million over four years for City and Growth Deals across Scotland.  

A £100 million joint investment for the Falkirk and Grangemouth Growth deal with the Scottish Government (£50 million from UK Government and £50 million from Scottish Government), demonstrating the UK Government’s continued commitment to the Grangemouth industrial area.  

A new local growth fund, and investments in up to 350 deprived communities across the UK, will maintain the same cash level as in 2025-26 under the Shared Prosperity Fund. The Ministry of Housing, Communities and Local Government and the Scotland Office, will work with local partners and the Scottish Government, to ensure money goes to projects that matter to local people. This investment will help drive growth and improve communities across Scotland.  

Supporting Scottish businesses  

The National Wealth Fund (NWF) is trialling a Strategic Partnership with Glasgow City Region to provide enhanced, hands-on support to help it develop and finance long term investment opportunities. The NWF has already made its first investment in Scotland with £43.5 million in direct equity for a sustainable packaging company, which is to build its first commercial-scale manufacturing facility near Glasgow.  

Through its Nations and Regions Investment programme the British Business Bank is delivering £150 million across Scotland to break down access to finance barriers and drive economic growth.  

The settlement also allocates £0.75 million each year to champion our ‘Brand Scotland’ trade missions to promote Scotland’s goods and services on the world stage and to encourage further growth and investment.

A record settlement for Scottish public services   

The Government has been clear that local decision-making against local priorities is central to delivering growth.   

The Scottish Government will receive the largest real terms settlement since devolution began in 1998, with an average £50.9 billion per year between 2026-27 and 2028-29, enabling the Scottish Government to deliver for working people in Scotland.  This includes £2.9 billion per year on average through the operation of the Barnett formula, with £2.4 billion resource between 2026-27 and 2028-29 and £510 million capital between 2026-27 and 2029-30. 

This investment and record settlement is made possible by the ‘tough but necessary’ decisions taken in the October Budget.

Edinburgh North and Leith Labour MP Tracy Gilbert has welcomed the statement. She said: “The Comprehensive Spending Review is good for Scotland’s economy and public Services.

“After several meetings with the Secretary of States for Science, Innovation and Technology and Scotland I’m so pleased to see the announcement of funding for the new Supercomputer to be based at EdinburghUniversity.

“This major investment in Edinburgh positions us at the forefront of computing, and technological innovation, not just in the UK, but globally.”

Not unsurprisingly, the Holyrood SNP Government has a number of issues with the likely impact of the Spending Review on Scotland. Post to follow …

Blow for Starmer as cabinet minister resigns over cut to overseas aid

ANNELIESE Dodds has resigned following prime minister Keir Starmer’s decision to cut overseas development aid funding to boost defence spending.

Ms Dodds said: “It is with sadness that I have had to tender my resignation as Minister for International Development and for Women and Equalities.

“While I disagree with the ODA decision, I continue to support the government and its determination to deliver the change our country needs.”

Prime Minister Sir Keir Starmer responded:

Letter_from_the_Prime_MinisterDownload

Ms Dodds’ replacement has been announced:

PM says step up in defence spending can safeguard the future of NATO

PM Keir Starmer has underlined the UK’s ‘cast iron commitment’ to spending 2.5% of GDP on defence to respond to growing threats, ahead of a NATO summit

Prime Minister Keir Starmer has underlined the UK’s ‘cast iron commitment’ to spending 2.5% of GDP on defence to respond to growing threats, ahead of a NATO summit where he will say a step up in defence spending can safeguard the future of the Alliance.  

At the summit in Washington D.C., the PM will emphasise his determination to face down global threats to Britain and its western allies. He will praise NATO members’ efforts to increase defence spending and say that further increases in spending will help the alliance tackle the nature of today’s threats.  

The Prime Minister has also confirmed today that he will launch the Government’s Strategic Defence Review next week, with detailed preparatory work already undertaken by Defence Secretary John Healey – who will oversee the review.  

The review will determine the future defence posture of the UK, the capabilities needed and will set out a roadmap to achieving 2.5% of GDP on defence. He will confirm that the review will put a ‘NATO-first’ policy at the heart of Britain’s defence plans.  

Prime Minister Keir Starmer said: “There is no more important duty for me as Prime Minister than keeping the people of our country safe.  

“At a time when we face multiple threats at home and abroad, we must make sure we are ready to defend ourselves. That’s why I have immediately ordered a root-and-branch review that will secure Britain’s defences for the future.  

“Working with our most important partners around the world, our Strategic Defence Review will make sure the UK is sending a clear message to those who seek to undermine peace and democracy – you will not succeed.”

Defence Secretary John Healey said: “Britain’s commitment to NATO is unshakeable. We cannot have prosperity without security and we must never take our ability to live freely for granted. 

“The world is increasingly volatile with rapidly changing global threats. In the footsteps of Bevin, our government will help ensure we have a strong NATO in this increasingly insecure world. 

“Our government’s first duty is to keep the country safe. That’s why we will increase defence spending and launch a Strategic Defence Review to ensure we have the capabilities needed to protect the UK now and in the future. The Review will also set out defence reforms to secure faster procurement and better value for money.”

Foreign Secretary, David Lammy, said: “NATO is part of Britain’s DNA. 75 years ago, Ernest Bevin helped to establish NATO. Today, as then, our commitment to NATO is completely unshakeable.

“We cannot have stability and prosperity without national security. That’s why NATO is the ultimate guarantor of our ability to live freely and build a more prosperous future, for the people of this country and our Allies.

“Ukraine’s security is our security, so our priority for Washington must be to show that NATO support for Ukraine remains iron-clad, and our support will be sustained. Putin thinks he can outwait the West, but he is mistaken.” 

Building on our existing global defence partnerships such as AUKUS and GCAP, the Prime Minister is determined to make sure the UK is one of the leading defence players on the world stage, and alongside our like-minded partners prove that progressive, peaceful democracies will ultimately triumph over tyranny.  

The Strategic Defence Review will consider the nature of the threats we face – including Putin’s ongoing brutal invasion of Ukraine, continued instability in the Middle East and the rise of authoritarian countries – and the capabilities we need to tackle them.  

That includes the shape of our Armed Forces and their readiness to fight, enhancing our defence partnerships, developing a new defence industrial strategy, ensuring our defence staff have the capabilities and skills needed, and delivering procurement reform. 

The Review will be conducted in consultation with allies, industry and external experts and its recommendations will be reported to the Prime Minister and Defence Secretary, as well as being laid before parliament.  

A major element of the Strategic Defence Review will be an emphasis on deepening our defence ties with NATO countries and other international partners. 

Over the next two days, the Prime Minister will meet the UK’s most important allies for the first time on the international stage, to drive forward progress on defence and other priorities – including supporting Ukraine against Russia’s ongoing illegal war, which has now entered its third year.

PM announces ‘turning point’ in European security

UK set to increase defence spending to 2.5% by 2030

  • On a visit to Poland, the Prime Minister launches plan to steadily increase defence spending to 2.5% of GDP by the end of the decade – reaching £87 billion a year in 2030.
  • Rishi Sunak announces ‘biggest strengthening of our national defence in a generation’ to meet the challenge of an increasingly dangerous world.
  • Defence to receive an additional £75 billion over six years, ensuring the UK remains by far the second largest defence spender in NATO after the US.
  • Additional funding will be used to put the UK’s defence industry on a war footing, deliver cutting-edge technology and back Ukraine against Russia.

Prime Minister Rishi Sunak has has announced the biggest strengthening of the UK’s national defence in a generation, with a fully funded plan to grow the defence budget to 2.5% of GDP by 2030. 

Delivering a speech alongside NATO Secretary-General Jens Stoltenberg in Poland yesterday, a country at the vanguard of the continent’s defence, the Prime Minister said we are at a turning point in European security and urged allies to step up.

An axis of autocratic states like Russia, Iran and China are increasingly working together to undermine democracies and reshape the world order. They are also investing heavily in their own militaries and in cyber capabilities and in low-cost technology, like the Shahed attack drones Iran fired towards Israel last weekend. 

This poses a direct threat to the lives and livelihoods of people in the UK, as well as across Europe and the wider world. The Government has already committed record investment in defence and the UK armed forces are world-leading – but the Prime Minister has said that we must take further action now to deter these growing threats. 

With Tuesday’s announcement, UK defence spending will increase immediately and then rise steadily to reach £87 billion at the end the decade – hitting 2.5% of GDP by 2030. 

The Prime Minister has set out three areas of focus for our bolstered defence budget:

  • Firing up the UK defence industrial base: Investing at least an additional £10 billion over the next decade on munitions production, delivering high-quality jobs and investment across the UK and ensuring we have rapid production capacity and stockpiles of next-generation munitions.
  • Modernising our Armed Forces: Radically reforming defence procurement and creating a new Defence Innovation Agency to ensure the UK is at the cutting edge of modern warfare technology, with at least 5% of the defence budget to be committed to R&D.
  • Backing Ukraine’s defence: Ukraine’s security is our security. As part of this plan, the Government will commit an additional £500 million this year for the ammunition, air defence and drones Ukraine needs; the largest-ever single delivery of military equipment to Ukraine’s frontlines; and a cast-iron commitment to maintain existing levels of support to Ukraine for as long as it Is needed.

Prime Minister Rishi Sunak said: “In a world that is the most dangerous it has been since the end of the Cold War, we cannot be complacent. As our adversaries align, we must do more to defend our country, our interests, and our values.

“That is why today I have announced the biggest strengthening of our national defence for a generation. We will increase defence spending to a new baseline of 2.5% of GDP by 2030 – a plan that delivers an additional £75 billion for defence by the end of the decade and secures our place as by far the largest defence power in Europe.

“Today is a turning point for European security and a landmark moment in the defence of the United Kingdom. It is a generational investment in British security and British prosperity, which makes us safer at home and stronger abroad.”

This is a fully-funded plan to deliver the biggest transformation of our national defence since the Cold War, moving from an aspiration to spend 2.5% by an unspecified date to a costed commitment to do so in 2030. 

Defence spending will increase immediately and rise linearly – with a further £500 million for Ukraine this year and overall increase of £3 billion in the next financial year. Today’s announcement will see an additional £75 billion for defence over the next six years, with defence spending expected to reach £87 billion a year in 2030.

This sets a new standard for other major European NATO economies to follow. If all NATO countries committed at least 2.5% of their GDP to defence, our collective budget would increase by more than £140 billion.

Chancellor of the Exchequer Jeremy Hunt said: “It speaks to Britain’s global role that, with an improving economy, we are able to make this commitment to peace and security in Europe.

“It also sends the clearest possible message to Putin that as other NATO European countries match this commitment, which they will, he will never be able to outspend countries that believe in freedom and democracy.”

Defence Secretary Grant Shapps said: “As I argued in my Lancaster House speech earlier this year, we are living in a much more dangerous world. Between Russia’s invasion of Ukraine, Iran and its proxies seeking to escalate deadly conflict, and China flexing its muscles, there can be no doubt that the era of the peace dividend is clearly over. 

“The mounting threats we face mean we must invest in defence if we are to continue to defend our values, freedoms and prosperity. 

“Today’s announcement marks the single greatest strengthening of our defence since the Cold War, which will support jobs, boost growth, and strengthen our incredible Armed Forces as a modern fighting force.”

The war in Ukraine has taught us that battlefield success is dependent on the ability to surge defence production and move to ‘always on’ production to replenish key equipment.

The UK will therefore invest a further £10 billion over the next ten years, most of which will be spent with British industry, to grow our domestic munitions production pipeline and increase stockpiles, setting a clear demand signal for industry through long term multi-year contracts. This represents nearly a doubling of our current spending on munitions production. 

The investment will focus on key high-tech capabilities, including air defence missiles and anti-armour munitions, in addition to continued investment in UK-built 155mm artillery ammunition. Defence already supported more than 400,000 jobs in 2021/22 – the equivalent of 1 in every 70 UK jobs – but today’s announcement will support new high-quality jobs and economic growth across all parts of the UK.

Reforms set out by the Prime Minister yesterday will also ensure we are investing in the right technologies and getting more for taxpayers’ money when it comes to defence. 

A newly created Defence Innovation Agency will manage scaled up investment in R&D, bringing together the fragmented defence innovation landscape into a single responsible organisation.

This includes R&D in new weapons systems such as Directed Energy Weapons or Hypersonic Missiles, as well as space capabilities and other emerging technologies. We will invest in areas that deliver advantage on the modern battlefield and better exploit low-cost solutions, like the inexpensive Unmanned Surface Vehicles seen in Ukraine. 

The DragonFire laser weapons system, developed by the MoD in collaboration with UK industry partners, demonstrates how we can accelerate technological development into frontline advantage. 

Backed by £350 million in government funding, DragonFire can fire at any target visible in the air at around £10 a shot and with an accuracy equivalent to hitting a pound coin from a kilometre away – and the weapon is due to be fitted to Royal Navy ships well ahead of schedule in 2027.

Britain will also make defence procurement faster, smarter and more joined-up. The new Integrated Procurement Model, launched by the Ministry of Defence in February, will break down individual service silos and bring in checks and balances through a new integrated design authority.

The model will see new technologies being used by the armed forces earlier in the process, rather than waiting for a ‘perfect’ product.

Additionally, the Prime Minister has announced plans to reform the Ministry of Defence’s Head Office to operate as a fully functioning strategic headquarters – holding the front line command accountable for delivery, driving better pan-defence prioritisation and ensuring value-for-money, supported by the National Security Council.