A Scottish Government minister stated the project was ineligible for support because it relates to “munitions” and is part of a programme for building attack submarines. This decision was labelled “student union politics” by UK Government Defence Secretary John Healy.

During questioning from Members of Scottish Parliament (MSPs) on Tuesday, SNP business minister Richard Lochhead reiterated the longstanding policy that public money should not support “the manufacture of munitions”. He confirmed that as the Rolls-Royce project concerned an “attack submarine”, it would not qualify for Scottish Enterprise backing, though he noted a formal application had not yet been submitted.

Scottish Labour deputy leader Dame Jackie Baillie labelled the Scottish Government’s position as “frankly incoherent”, arguing the policy on state-funded aid for defence is applied selectively. She highlighted that the government-owned Ferguson Marine shipyard is undertaking subcontracting work for the Royal Navy’s Type 26 frigate programme, pointing out that “there are munitions on the frigate”.

Conservative MSP Stephen Kerr echoed these sentiments, describing the SNP’s stance as “not just incoherent, it’s totally hypocritical”.

In response, Mr Lochhead asserted that the Scottish Government “very much values the role of the defence sector in Scotland”, citing the jobs it sustains and its contribution to the economy. He stated that £45m in support had been allocated through enterprise agencies to defence companies or those partially involved in defence activities.

He further explained that funding had focused on industry diversification and emphasised that defence is a matter reserved for the UK government. Mr Lochhead also said governments must consider “ethical considerations” when funding companies in the defence sector.