The UK government is investing in defence and clean energy to protect existing jobs and create thousands more in Scotland.

Chancellor Rachel Reeves visited Scotland on Friday, discussing how the Spending Review will increase jobs in Scotland through funding for defence and energy.

Increasing defence spending to 2.6% could lead to around 0.3% higher GDP in the long run, equivalent to around £11 billion of GDP in today’s money, the government estimates.

“We’re seizing the huge potential and opportunities that Scotland has on offer,” chancellor Reeves said.

“Whether it’s in defence to keep the UK safe, or clean energy to power all corners of the country, this government is backing Scotland with billions of pounds of investment to grow the economy and create jobs.”

The spending review also saw investments that will make Scotland the home of the UK’s clean energy revolution. While Acorn – an Aberdeenshire-based carbon capture project – is still subject to a final investment decision, this £200 million is just part of the UK government’s commitment to investing in Scotland and has the potential to safeguard 18,000 North Sea jobs whilst creating 15,000 new ones in Scotland’s clean energy transformation.

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Great British Energy will also be headquartered in Aberdeen, to drive clean power generation across the UK, boosting homegrown energy.

The Chancellor’s visit comes as defence spending rises to 2.6% of GDP and figures from 23/24 reveal that MOD spend maintains 26,100 skilled jobs across Scotland. The Spending Review also committed £250 million to secure the future of HMNB Clyde – the first stage of a multi-decade, multi-billion renewal project and all three Clyde shipyards are currently fulfilling contracts for the Royal Navy.

The funding will also see the addition of three new E-7 Wedgetail aircraft be added to the RAF’s fleet, which will see more jobs created at the Boeing base in Moray.

“The UK Government is investing in defence to ensure Britain’s security and deter our adversaries and drive economic growth,” Scottish Secretary Ian Murray said.

“This investment is a massive jobs opportunity for Scotland – this ‘defence dividend’ is good news for Scotland, where it will help create skilled jobs, drive economic growth and help tackle the critical skills gaps facing the country in sectors such as nuclear, construction, maritime and project management.”