Scotland risks being unable to deliver key parts of the UK's defence strategy unless persistent skills shortages are addressed, a new report from the House of Commons Scottish Affairs Committee has warned.
The cross-party committee says Scotland is well placed to benefit from increased UK defence spending, but warns that training provision is not keeping pace with the future workforce needs of the sector.
Its report, Securing Scotland's Future: Defence Skills and Jobs, says the availability of skilled workers will be critical both to Scotland receiving the economic benefits of higher defence investment and to the UK's wider defence and national security objectives.
Skills shortages threaten defence ambitions
The committee says demand for apprenticeships and technical training is high but provision is failing to keep pace with the workforce that will be needed as defence investment increases.
MPs welcomed initiatives including the Defence Growth Deal and Defence Universities Alliance, but called on the UK and Scottish governments to act with greater urgency to strengthen Scotland's defence skills base.
The warning comes as the UK seeks to use higher defence spending not only to strengthen national security but also as an engine for economic growth, supporting skilled employment and domestic supply chains.
Dispute over two defence colleges
A central issue highlighted by the committee is the proposed creation of Defence Technical Excellence Colleges, or DTECs, in Scotland.
The colleges are intended to provide advanced technical skills required by the defence sector and expand access to high-quality apprenticeships.
Two DTECs have been proposed for Scotland, but the committee says the UK Government has indicated that only one will proceed unless the Scottish Government provides matched funding.
The report says progress on the Scottish DTECs has already “fallen behind” developments in England and calls for both governments to work together urgently.
The committee said it hoped the Scottish Government would provide the matched funding needed to allow both proposed colleges to proceed.
Committee warns opportunity could be missed
Scottish Affairs Committee chair Patricia Ferguson said Scotland had a world-leading defence sector and was well placed to benefit from increased UK defence spending.
However, she warned that the opportunity could be missed unless longstanding skills shortages were addressed.
Ferguson said the proposed DTECs could strengthen Scotland's skills pipeline and expand access to apprenticeships capable of supporting the UK's defence ambitions.
She also called for closer co-operation between the UK and Scottish governments to accelerate development of the workforce needed by Scotland's defence industry.
Small defence firms face barriers
The report also focuses on Scotland's small and medium-sized businesses, which MPs say must be able to participate in defence supply chains if the economic benefits of increased spending are to be spread more widely.
SMEs account for 98.2% of businesses in Scotland, according to the committee, but evidence gathered during the inquiry suggested smaller defence companies can face significant financial and operational barriers.
The committee called on the Ministry of Defence to improve opportunities for Scottish firms and encourage major defence contractors to provide greater support to smaller businesses seeking to enter their supply chains.
Concerns over defence firms being 'de-banked'
MPs also raised concerns that some smaller companies have experienced banking difficulties because of their involvement in the defence sector.
The committee says it heard evidence of SMEs being “de-banked” because of links to defence and argues that such practices could damage job creation and national security.
It called on the UK Government to work with financial institutions to address the issue.
Recruitment and public perception
The report identifies public perceptions of the defence industry as another barrier to recruitment.
Although the Defence Industrial Strategy called for a national conversation about the importance of defence, the committee says progress has so far been limited.
MPs want greater efforts to explain the sector's role in national security, skilled employment and economic growth.
Scotland's role in UK defence
Scotland already hosts major defence facilities and manufacturing programmes, including naval shipbuilding and elements of the UK's nuclear deterrent infrastructure.
The committee's warning does not mean that Scotland is currently unable to deliver existing defence programmes. Instead, its report identifies a risk that future ambitions and the economic opportunities associated with rising defence expenditure could be constrained if the skills pipeline fails to expand quickly enough.
The report was published on 15 September following an inquiry launched by the Scottish Affairs Committee in October 2025.