Following the recent announcement of the publication of the SNP’s Independence White Paper, which will set out the blueprint of an independent Scotland, including the formation of a Scottish Defence Force, MOD Defence Contracts Online looks at what this might mean for the defence industry in the long term.

Speaking at the Scottish National Party Conference in Perth recently, Mr Salmond said that the detailed case for independence would be published on 26 November. The White Paper is expected to be an extremely contentious and well-scrutinised document, one which could make or break the ‘Yes’ campaign for an independent Scotland.

Scottish Defence Force

In terms of defence, the White Paper is likely to outline plans for the establishment of a Scottish Defence Force to replace the full UK military in Scotland, plans for the removal of nuclear weapons from Scottish waters at Faslane, and the distribution of military assets between an independent Scotland and its neighbours in the rest of the UK.

Mr Salmond’s speech follows the publication of a report by the UK Government entitled ‘Scotland Analysis: Defence’, which outlined Defence Secretary Philip Hammond’s views that ‘an independent Scotland would face an immediate and pressing challenge to establish Armed Forces capability and supporting defence machinery’.

The paper highlighted the employment and economic benefits the defence industry brings to Scotland that would be threatened should Scotland leave the UK.

Commenting on Scotland Analysis report, Paul Everitt, Chief Executive of Defence trade organisation ADS Group, said:

“The UK’s defence industry in Scotland makes a significant contribution to the economy, as well as national security and support of our armed forces.  Today’s report by the Government, and that recently published by the House of Commons Defence Committee, highlights the need for the clearest possible explanation of Defence plans and priorities in the event of Scottish Independence, allowing the people of Scotland to make an informed decision.” 

Defence procurement implications

The Scottish Government has proposed a spend of £2.5bn on the Scottish Defence Force, with a military of 15,000 troops with 5000 reservists. However, the UK Government has warned that the SNP’s plans put 12,000 defence jobs at risk, particularly at the Faslane base where the UK’s nuclear deterrent, Trident, is being housed.

The main question of the UK Government is ‘will an independent Scotland be able to match the military capability currently enjoyed by the current union?’ However, the ‘yes’ camp rebuttal is simply ‘does an independent country of 5.5 million people need to match that capability, or would these funds be better deployed away from nuclear weapons and towards other areas of the Scottish economy?’

The issue of independence will have wide-reaching implications on the whole of the UK, and not least on the defence industry as we currently know it. Defence supply chains, procurement budgets, international relationships, distribution of assets and much more will be affected, and suppliers to the defence marketplace across the whole of the UK need to remain aware of the possible changes a ‘yes’ vote will bring.

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