Scottish Business Growth Group minutes: June 2025

Attendees and apologies

• Secretary of State for Scotland (Co-Chair)
• Minister for Business (Co-Chair)
• Director for Business and Better Regulation, Scottish Government
• STUC 
• Scottish Chamber of Commerce (SCC)
• Prosper
• Federation of Small Businesses
• Institute of Directors
• Confederation of British Industry
• Scottish Government Officials
• UK Government Officials

Items and actions

Growth opportunities for Scottish businesses in defence sector

Scottish businesses have significant growth opportunities stemming from the Strategic Defence Review (SDR). The Secretary of State (SoS) emphasised the government's role in championing Scottish industry to stimulate investment, despite existing challenges. Key points and recommendations for maximising these opportunities include collaboration and Unity. Participants highlighted the importance of collaboration between the UK and Scottish Governments (SG) to leverage Scotland's skilled workforce for defence contracts. Moving beyond governmental differences to a unified approach could enhance industry capabilities.

Understanding business needs

Understanding the specific requirements of businesses looking to enter the defence sector is crucial. This includes clarity on support mechanisms, funding, and the apprenticeship levy to ensure investment in skills development.

Infrastructure and investment

Investments, such as those at Faslane, need to ensure that Scottish businesses can participate. A call for clarity on how these investments benefit local industry was made, with a focus on regional engagement.

Skills development

There is a pressing need to address skills gaps through streamlined training processes, ensuring courses create job-ready candidates. An urgent plan for 15,000 apprentices was also highlighted. Ensuring that jobcentres are equipped to connect businesses with suitable candidates is essential.

Single national strategy

The establishment of a comprehensive master plan consolidating various sectoral initiatives would provide clarity for investors. Ensuring that the investment landscape is articulated clearly will help attract business opportunities to Scotland.

Youth engagement

Involving younger people in discussions about industry opportunities is crucial to aligning training and job offerings with the expectations and aspirations of the next generation.

Investment climate

The anticipated growth in defence spending necessitates modernising offerings and improving the overall business climate. Concerns about planning processes, regulatory burdens, and the costs of doing business need to be addressed to facilitate growth.

Immigration policy

The broader issues around immigration and its impact on securing talent were noted, with a consensus on the necessity for more flexible immigration policies tailored to meet Scotland's unique labour market needs. The need for evidence-based requests for additional visa allowances was also emphasised.

Streamlined procurement

Calls for streamlined procurement processes and pre-agreements with suppliers were expressed, reflecting the crowded nature of the defence supply chain.

Collective action

With a focus on skills, regulation, and investment in infrastructure, all stakeholders are encouraged to contribute towards a joint action plan that aligns Scottish capabilities with defence opportunities.

Conclusion

In conclusion, embracing these outlined strategies while fostering collaboration between the UK and Scottish governments will position Scotland to seize the forthcoming opportunities within the defence sector and ensure that local businesses benefit maximally from this generational opportunity.

Action points

• officials from UK Government (UKG) and Scottish Government (SG)  to continue to work together with a collaborative approach to address Scotland’s unique labour market needs
• stakeholders to provide evidence of how a Scottish Visa would work and encourage people to move to Scotland, so this can be considered at the migration advisory group

• member of the Migration Advisory Committee to be invited to speak at the next Scottish Business Growth Group (SBGG) to discuss immigration
• officials from Scottish Government to provide an update on the regulation review pipeline being worked on by UKG and SG