In answer to a question from Gregor Poynton, MP for Livingston constituency, she insisted the latest Government plans should offer up huge opportunities for companies based here.
Speaking during her Spring Statement, she confirmed that UK defence spending will increase to 2.5% of GDP by 2027. That means a further £2.2 billion funding boost for the Ministry of Defence by next year, on top of an already announced rise of £2.9 billion.
In parliament, Gregor Poynton, MP for Livingston constituency asked: “For defence companies in Scotland, UK export finance plays a crucial role in financing sales to our allies around the world, including Ukraine. Can the Chancellor therefore outline how the increase in capacity and UK export finance will help defence companies in Scotland create jobs in my Livingston constituency and strengthen our national defence?”
In response Rachel Reeves MP said towns and businesses in Scotland should be in a position to capitalise, as defence spending here and elsewhere goes up: “Just two weeks ago, I was able to announce £2 billion extra for UK Export Finance, specifically to help defence companies in the UK export, as countries around the world and Europe particularly, increase defence spending. I want to make sure that we get those contracts here in Britain to support our proud defence industry, including in places like Livingston and in Rosyth, where I was, meeting Babcock just a couple of weeks ago.”
Mr Poynton has been an advocate of Scotland playing its part in defence production, both in its role as an ally to Ukraine in the face of Russian aggression, but also in an effort to bolster its own economy.
Earlier this month he wrote to Scotland’s First Minister John Swinney asking him to put the country’s money where its mouth is, to allow Scotland’s National Investment Bank to invest into companies connected with the manufacture of munitions and weapons.
At present the SNP refuse to allow SNIB to put funds into the production of arms, which means Scotland’s financial benefit from the increase in defence spending is limited.