Reeves’ good news message for Scotland - Ian Murray

Last month, the Prime Minister announced the government’s intention to increase defence spending to 2.5 per cent of GDP by 2027.

Yesterday in the House of Commons, the Chancellor front-loaded a £2.2 billion increase in defence spending from April. This is a decisive response to a generational global challenge and it’s good news for Scotland’s economy and jobs.

This additional funding will be spent on upgrading the technological capabilities of our military, ensuring that our Armed Forces have the advanced technologies they need to keep us safe. The money will also be used to refurbish and improve the standard of 36,000 military homes recently brought back into public ownership.

Importantly the extra funding is fully costed. In the election we promised we would be responsible with the public purse, a promise we have kept in office. Opposition parties have the luxury of spending with immunity, and they do so liberally.

With Scotland’s expertise in shipbuilding and defence manufacturing, the announcement of further defence spending also promises to boost Scotland’s prosperity. Last year, the Ministry of Defence spent over £2 billion in Scotland. The defence industry in Scotland employs 30,000 people, around 1500 of whom are apprentices.

I want to see the UK and Scottish Governments working together to make the most of what could be a transformative investment in Scotland’s defence industry. The Scottish Government must play its part in protecting Scotland’s security and prosperity, particularly in areas such as skills, training and investment. The Labour government have stepped up on defence - now we need the SNP to do the same.

The tough fiscal climate and unstable international situation we find ourselves in leaves few options, but it does mean we need to go further and faster on reforms and growth while being laser focused on economic stability.

More broadly, Scotland has a unique part to play in national security, and unique opportunities to benefit from the government’s recent actions. GB Energy, headquartered in Aberdeen and with offices in Edinburgh and Glasgow, will protect our energy security by making us less dependent on imported energy, in addition to bringing down energy bills and providing skilled jobs.

Meanwhile, the Labour government’s £200 million investment in Grangemouth’s future will protect our industrial capacity and boost economic growth.

In advance of the Spring Statement, the naysayers said the Chancellor would cut spending and in fact it increases above inflation every year – we promised to end austerity, and we have.

They said she would slash growth but in fact projections have been improved because of government decisions despite the reduction next year. They said she would slash resources to Scotland but, in fact, more money is available on top of the £4.9bn from last year’s budget.

And critically, the OBR says it makes households better off.

We face a generation-defining moment for national security and economy. We must step up as a country and grasp the opportunities. The Chancellor is taking them head on.

MP for Edinburgh South and Secretary of State for Scotland