Rachel Reeves visits Scotland to promote defence plans
Reeves said Labour is 'seizing the huge potential and opportunities that Scotland has to offer", particularly in defence and energy.
The remarks come as she plans to visit RAF Lossiemouth in Moray and the St Fergus gas plant in Aberdeenshire – just one week after a photo-op at Rolls-Royce near Glasgow Airport.
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During Friday's visit, Reeves is expected to meet with 200 Boeing employees at the Lossiemouth military base, where work is ongoing on three E-7 Wedgetail aircraft.
The UK Government claims that its plan to increase defence spending to 2.6% of GDP could boost the economy by around 0.3% and create 26,100 jobs in Scotland.
Officials also cited a proposed £200 million investment in the Acorn carbon capture project in Aberdeenshire.
While this has been touted as potentially supporting up to 33,000 new and protected jobs, a final decision on the funding has yet to be made.
Reeves said: 'We're seizing the huge potential and opportunities that Scotland has on offer.
'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.'
Scottish Secretary Ian Murray echoed the message, describing the funding as a 'defence dividend' that would drive economic growth and help plug skills gaps across sectors like nuclear, maritime and construction.
Industry voices largely welcomed the funding, though not without caveats.
Boeing UK's president, Maria Laine, pointed to past investments in facilities at RAF Lossiemouth and said the company had 'seen first-hand' how defence infrastructure spending can benefit jobs and supply chains.
CBI Scotland director Michelle Ferguson called the announcement of £200 million for the Acorn project 'encouraging', but noted that businesses are still awaiting final approval.
She added that defence spending could help strengthen Scotland's skilled workforce and drive growth.
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However, not all stakeholders were fully aligned with the Government's approach.
The Aberdeen & Grampian Chamber of Commerce urged Reeves to scrap the energy profits levy (EPL) – a windfall tax on oil and gas firms with a headline rate of 78%.
Chief executive Russell Borthwick warned that continued pressure on North Sea energy production could result in declining output, job losses, and increased reliance on imports – just as the country needs domestic production to underpin its energy transition.
Borthwick said: 'There's no need to start from scratch or build out a nascent industry.
'Simply by removing the confiscatory EPL, letting investment flow, and stimulating activity in a sector that's been hit hard by policy, we can unlock significant growth.'
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