Scotland’s small and medium-sized enterprises (SMEs) have been recognised for their vital role in national security during a high-level defence roundtable held yesterday at Edinburgh’s Queen

Elizabeth House. The meeting, chaired by UK Defence Minister Lord Coaker, followed his visit to the Edinburgh Royal Military Tattoo.

The event brought together representatives from eight innovative Scottish companies, spanning locations from Stirling to Forfar, to discuss how defence investment can drive growth, innovation, and job creation.

The roundtable comes as the Ministry of Defence (MoD) reaffirms its pledge to spend £7.5 billion with SMEs by 2028, including a £2.5 billion boost over the next three years—a significant reversal from the decline in SME spending before last year’s election. This investment forms part of the Government’s “Plan for Change”, recognising SMEs as essential contributors to the defence supply chain both directly and indirectly.

Lord Coaker praised the sector’s ingenuity:

“It was fantastic to meet many innovative Scottish companies who play a crucial role in strengthening our national security, boosting growth and providing jobs in their local communities.  

Businesses in Scotland will be among those who can benefit from the £2.5 billion increase in SME spending that we will deliver, helping drive defence as an engine for economic growth – as we deliver on our Plan for Change”.

Scotland’s defence sector already plays a major role in the UK’s security and economy. The MoD spends over £2 billion annually in Scotland’s defence industry, supporting nearly 12,000 jobs. The country also hosts thousands of military personnel, major bases, and key infrastructure projects—such as the multi-billion-pound redevelopment of His Majesty’s Naval Base Clyde, which is creating skilled opportunities for SMEs and addressing critical skills gaps.

Scottish Secretary Ian Murray reinforced the Government’s long-term commitment:

“We are proud of Scotland’s defence sector and we will always stand up for the industry and workforce. The UK Government’s historic uplift in defence spending will see a huge defence dividend for Scotland which will help ensure Britain’s security, deter our adversaries and drive economic growth for years to come as part of our Plan for Change.

Through events such as today’s roundtable we are working closely with industry and supply chains to maximise Scotland’s defence dividend. Our new Brand Scotland campaign will seek to build on that success and help the sector export its world class technology around the world”.

Through initiatives like the new Brand Scotland campaign, the UK Government aims to help the sector export its world-class technology globally. These efforts align with the upcoming Defence Industrial Strategy, which will outline new opportunities for collaboration between Government and industry, unlocking innovation and ensuring the UK maintains a technological edge on the world stage. Photo by Breadandcheese, Wikimedia commons.