Pressure Grows on Scottish Government to Build Ships at Home
Pressure is increasing on the Scottish government to build ships at home, with lawmakers arguing that national security provisions in UK subsidy law should be used to support domestic shipbuilding, according to the UK Defence Journal.
A written parliamentary question by Paul Sweeney MSP asks whether national security can be interpreted broadly to allow Scotland to use section 45 of the UK Subsidy Control Act 2022 to exempt ship procurement from normal competition rules. This could open the door for Scottish shipyards to secure work on public vessels.
Lawmakers Push for Scottish Shipbuilding
Sweeney’s question comes amid delays in the Marine Vessel Replacement Project, a programme to replace the Marine Protection Vessel Minna and the Marine Research Vessel Scotia. Procurement milestones have been formally reset after months of inactivity. Sweeney says a broader interpretation of national security, including roles in maritime domain and resilience, could justify local construction.
Section 45 of the Subsidy Control Act allows public authorities to bypass normal subsidy restrictions where necessary to protect national security. The Scottish government has said replacement vessels are planned to merchant standards and are not defence assets, placing them outside that scope.
In addition to legal arguments, Sweeney has urged the use of financial tools, such as support from the Scottish National Investment Bank, for builder’s refund guarantees and patient finance to help Scottish yards compete commercially.
Shipbuilding’s Role in the UK and Scottish Economy
Shipbuilding remains a significant part of Scotland’s maritime industry. Official statistics show the sector generated about £540 million in gross value added in 2023 and employed around 7,700 people. Scottish shipbuilding represented around 17 per cent of UK shipbuilding gross value added that year.
The UK government has been emphasising the strategic role of Scottish yards in the Royal Navy’s wider shipbuilding pipeline. Recent press releases highlight ongoing work on Type 26 and Type 31 frigates in Glasgow and Rosyth, supporting thousands of jobs and wider supplier networks.
This comes alongside broader UK shipbuilding strategy efforts, with plans to sustain and expand naval vessel production, including up to 28 new warships and submarines under current defence plans.
Debate on Procurement Policy and National Strategy
The written question reflects a broader debate over procurement policy, domestic industrial support, and the role of regional governments in defence-related work. Advocates for domestic shipbuilding argue that secure supply chains and local job support are essential, particularly in regions with deep shipbuilding heritage and skills. Critics note that rules and definitions of what constitutes national security work can be narrow, potentially limiting such exemptions.
The issue also ties into ongoing discussions about broader UK industrial strategy and defence investment. Recent UK government moves, including growth deals and strategic investment pledges in Scottish maritime and defence sectors, aim to bolster long-term capacity and skills, though questions remain about how and where specific work is procured and completed.
What Comes Next
Scottish ministers have yet to formally respond to the latest written question. How they interpret national security in the context of ship procurement and whether they engage with UK defence officials on exemptions will shape the debate over domestic shipbuilding support.
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