Swinney lifts ban on taxpayer support for munitions – Daily Business

First Minister John Swinney has lifted the Scottish government’s ban on public support for companies involved in munitions.

The controversial prohibition came to the fore after a plan by Rolls-Royce to set up a submarine welding facility on the Clyde collapsed because Scottish Enterprise withdrew a critical £2.5 million grant.

It said Scottish Government policy barred public funding for “munitions,” despite Rolls-Royce saying its nuclear propulsion systems were not used for delivering warheads.

The issue has also been raised over recent investment by BAE Systems in warship building in Scotland which has left the Holyrood government exposed to claims of hypocrisy for backing the company and its recruitment of workers.

Mr Swinney said today: “In light of Russia’s invasion of and continued war against Ukraine the Scottish Government will lift the restriction previously applied to the use of public support for the production of munitions.

“This will not be available to companies which fail to demonstrate that their products are not involved militarily with Israel or other countries implicated in genocide.”

He said awards of public money to defence companies involved with Israel will be halted as he set out a package of economic, humanitarian and diplomatic measures in response to the ongoing crisis in Gaza.

Mr Swinney has instructed “relevant delivery bodies such as Scottish Enterprise where possible to not provide support for trade between Scotland and Israel.”

“I the face of genocide, there can be no ‘business as usual’,” he said. “Any defence company seeking support from the Scottish Government will have to demonstrate that its products are not involved militarily with Israel.”