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Scotland risks missing out on a defence spending bonanza if persistent skills shortages are not addressed, MPs have warned.\u00a0<\/p>\n
Demand for apprenticeships and technical training is high, but today\u2019s report from the Scottish Affairs Committee warns that training provision is not keeping pace with future workforce needs.<\/p>\n
The committee says this could undermine Scotland\u2019s ability to deliver the UK\u2019s defence strategy and realise the full benefits of increased defence investment. <\/p>\n
The report welcomes initiatives like the Defence Growth Deal and the Defence Universities Alliance but urges the UK and Scottish governments to act with greater urgency to strengthen Scotland\u2019s defence skills base.\u00a0<\/p>\n
It highlights the potential of two proposed Defence Technical Excellence Colleges (DTECs) for Scotland, which are designed to deliver advanced technical skills for the UK defence sector. <\/p>\n
However, without matched funding from the Scottish Government, the UK Government has said only one college will proceed. Given the potential positive impact of DTECs, the committee hopes to see the Scottish Government provide match funding, as well as collaboration from both Governments to deliver the colleges.\u00a0\u00a0<\/p>\n
More widely, the report warns that progress on DTECs has \u201cfallen behind\u201d those in England and urges both governments to work together with greater urgency to develop Scotland\u2019s skills base.\u00a0<\/p>\n
Unlocking SME potential<\/strong>\u00a0<\/p>\n SMEs make up 98.2% of Scotland\u2019s businesses, and the report argues that they must be better supported if Scotland is to benefit fully from rising defence spending. <\/p>\n The committee heard that defence SMEs face significant financial risks and barriers to operation and calls for the MOD to improve opportunities for Scottish firms and encourage prime contractors to do more to support them.\u00a0<\/p>\n Public perceptions of defence\u00a0<\/strong>\u00a0<\/p>\n The defence sector\u2019s negative public image is one of its most persistent barriers to recruitment. While the Defence Industrial Strategy called for a national conversation about the importance of defence, progress has been limited. The report says more needs to be done to improve public understanding of the industry\u2019s role in creating jobs, driving growth and supporting national security.\u00a0<\/p>\n There are also concerns that some SMEs have been de-banked due to their links to the sector. Today\u2019s report urges the UK Government to work with the financial services sector to end this practice, warning that it undermines national security and job creation.\u00a0<\/p>\n Chair of the committee, Patricia Ferguson, said:\u00a0\u201cScotland has a world-leading defence sector and is well-placed to benefit from increased UK defence spending. However, unless long-standing skills shortages are addressed, this opportunity could be missed.\u00a0 <\/p>\n \u201cOne of the main ways skills trainings can be expanded is through DTECs, which have the potential to strengthen Scotland\u2019s skills pipeline and expand access to high-quality apprenticeships that can support the UK\u2019s defence ambitions. <\/p>\n \u201cThe committee hopes to see the UK and Scottish Government\u2019s work together to deliver both proposed DTECs in Scotland and, more widely, that Scotland can accelerate work to develop the skills base its defence sector needs.\u00a0<\/p>\n \u201cIt\u2019s also important that Scottish defence SMEs get the support they need to grow. Removing barriers to defence supply chains and improving engagement with prime contractors will help unlock their full potential and help make sure the economic benefits of defence investment can be felt across Scotland.\u201d\u00a0<\/p>\n Daily Business Bulletin<\/strong>:\u00a0Subscribe here for our free morning bulletin of breaking news<\/em><\/strong><\/p>\n \t <\/div>\n