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MPs have raised concerns that UK Government cash aimed at boosting the supply of skilled workers for the defence sector could be insufficient to “shift the dial on skills shortages” in Scotland.

Members of the Scottish Affairs Committee hit out the “disproportionately small” amount of funding awarded by the UK Government in this area.

While a £182 million fund has been established, the committee said that £20 million had been allocated for Scotland, Wales and Northern Ireland.

In a report published on Tuesday, the MPs said that “represents a disproportionately small share” adding that “it is difficult to see how it can shift the dial on skills shortages in Scotland”.

MPs want the Ministry of Defence to explain “how it arrived at this £20 million figure, and how it is commensurate with the size, importance and potential of Scotland’s defence sector”.

The committee also demanded an explanation of how this “limited share of funding will support the expansion of skills provision to the extent necessary to address persistent shortages across Scotland’s defence industry”.

Speaking out as the report was published, committee chair Patricia Ferguson said that opportunities for Scotland to benefit from increased defence spending by the UK Government “could be missed” unless “long standing skills shortages are addressed”.

The Labour MP also called on the Scottish Government to work together with Westminster to set up two Defence Technical Excellence Colleges (DTECs).

While the UK Government has allocated £7 million for setting up the new institutions in Scotland, the report noted the Scottish Government “has not yet confirmed whether or not it will match fund the proposed DTECs”.

But the committee said that the proposed DTECs could be a “welcome step” towards tackling “skills shortages” in the defence sector.

The MPs said: “We hope to see the Scottish Government match the UK Government’s funding for the two proposed DTECs.

“However, if the Scottish Government does not agree to match funding, an important opportunity will be lost.”

Progress in establishing  DTECs in Scotland has already “fallen behind those in England”, the report noted.

And the MPs said: “We hope to see both Governments work together with greater urgency to ensure that Scotland does not fall further behind in developing the skills base needed to support the UK’s defence ambitions.”

Ms Ferguson said: “Scotland 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.”

She stated: “One of the main ways skills trainings can be expanded is through DTECs, which have the potential to strengthen Scotland’s skills pipeline and expand access to high-quality apprenticeships that can support the UK’s defence ambitions.

“The committee hopes to see the UK and Scottish Governments 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.”

Ms Ferguson also stressed it was important small and medium sized firms (SMEs) working in the defence sector “get the support they need to grow”.

Her comments came in the wake of the committee hearing evidence that “it can be particularly challenging for SMEs to secure contracts in the defence sector”, with the report noting that “in order to bid for defence contracts, companies must meet a range of technical, regulatory and security requirements”.

Ms Ferguson said: “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.”

A UK Government spokesperson said Scotland is already benefiting from increased defence investment.

“Ministry of Defence spending with industry in Scotland directly supported 12,200 jobs in 2024/25, up from 11,400 the previous year,” the spokesperson said.

“We recognise that developing the skilled workforce needed to support Scotland’s growing defence sector is essential to building on that success.

“That is why we launched Scotland’s £50 million Defence Growth Deal, including £10 million support for two Defence Technical Excellence Colleges and wider initiatives to help develop the skills pipeline needed for future defence jobs, innovation and economic growth.

“We continue to urge the Scottish Government to match fund these colleges so our young people gain the skills they need to secure high-skilled, well-paid careers in Scotland’s defence industries.”

A Scottish Government spokesperson said Scotland is “well placed” to seize the opportunities arising from increased UK defence spending, with a “highly skilled workforce, world-class universities and internationally recognised manufacturing”.

“Recognising these opportunities, we recently committed to establishing a Defence Industrial Growth Programme to maximise the economic benefits arising from increased UK and allied defence spending, supporting economic growth, high-value jobs and national resilience,” the spokesperson said.

“Further details of the programme will be announced in due course.”

“Ministers are also taking targeted action to meet urgent skills needs in sectors like engineering and advanced manufacturing.

“Following a request for further information on its plans for Defence Technical Excellence Colleges, the UK Government provided additional detail. Ministers will carefully consider this information and discuss with UK Government counterparts.”