Rachel Reeves insists Labour can win Holyrood election and blasts SNP opposition to defence spending
Rachel Reeves has blasted SNP opposition to defence spending and insisted Labour is still on course to win next year's Holyrood election.
The Chancellor used a visit to the Rolls-Royce plant in Inchinnan today to promote the UK Government's recent commitment to increase defence spending, which she said would create more jobs north of the Border.
It comes after a leading trade union boss this week warned Labour "can't win in Scotland" due to the party's opposition to new oil and gas developments in the North Sea. GMB general-secretary Gary Smith said Westminster had failed to understand the energy sector was an "emotional issue" for Scots.
But Reeves today brushed off the union chief's criticism and said her Government would honour existing oil and gas licneses - which paves the way for massive new developments at the Rosebank and Jackdaw fields in the North Sea.
She told the Record: "Last year, the courts changed the rules about investment in oil and gas. We've since published new guidance, and we're now waiting for Shell and Equinor to submit their new planning applications for Rosebank and Jackdaw, and we look forward to receiving those. We made a commitment in our manifesto last year that we would honour existing oil and gas licenses. The ball is in the court of Shell and Equinor."
Reeves also said Labour would stand on its record of investment in Scotland since it took power at last year's general election.
The party continues to trail the SNP in the polls ahead of the 2026 Holyrood election. Labour has recently sought to emphasise its investment in the defence industries, which remains a major employer in Scotland. It comes after John Swinney's Government was criticised for its policy of refusing to spend public money on industries involved in "munitions" work.
Asked by the Record if Labour could win in Scotland, the Chancellor added: "We won in Scotland last year and we won well." Pressed on whether her party was in position to take power from the SNP at Holyrood, she added: "Absolutely we are, if you look at what we are doing as a Government.
"I'm here at Rolls-Royce, which benefits from the investment in our defence sector, 2.6 per cent of GDP - that's defence spending opposed by the SNP, despite the fact it creates good jobs and prosperity here in Scotland, whether it's at Rolls-Royce, or at Babcock in Rosyth.
"So we're backing those industries, as well as upgrading the facilities at Faslane. We're also backing carbon capture and storage in Aberdeen, and GB Energy, headquartered in Scotland. This Labour UK Government is investing in Scotland and we want to work with a Labour Government in Scotland which is backing Scottish people."
The SNP Government was previously accused of "student union politics" after it refused to invest in a specialist skills centre to train the next generation of Scottish shipbuilders.
Scottish Enterprise, a taxpayer-funded quango, refused to hand over £2.5m to help open a world-class welding college on the banks of the Clyde. The snub was caused by a longstanding Nationalist policy of refusing to allow public money to be spent on anything it classes as "munitions".
The UK Government previously announced it would instead make up the funding shortfall if SNP ministers continue to refuse to back the scheme, which is supported by British aerospace giant Rolls-Royce.
John Healey, the UK Defence Secretary, accused John Swinney's Government of engaging in "student union politics". "We have a long-term partnership with Rolls-Royce, they are central to the most important military equipment that keeps us all safe," the Labour minister said last month.
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