In a move that has ignited fresh debate over Scotland’s industrial future and the politics of defence, the Labour Government has stepped in with £2.5 million to secure a new Welding Development Facility in Glasgow, after the Scottish Government declined to fund the project. The announcement, made by Defence Secretary John Healey during the Labour Party Conference in Liverpool on September 29, 2025, marks a significant intervention in Scotland’s shipbuilding sector and has rapidly become a political flashpoint between Labour and the Scottish National Party (SNP).
The £11 million centre, designed to provide specialist welding training and support a pipeline of defence workers, will be operated initially by Rolls Royce Submarines in partnership with Malin Group and the University of Strathclyde. There’s room for other organisations to join in the future, a detail that underscores the ambition of the facility to become a hub for advanced shipbuilding skills across Scotland. The project will be delivered through the Government’s Unity contract with Rolls Royce, an eight-year agreement valued at around £9 billion to sustain support for the Royal Navy’s nuclear submarine fleet, according to Labour’s official announcement.
Defence Secretary John Healey didn’t mince words at the conference, taking aim at the SNP’s record on industry and national security. “Labour is proud of Scotland’s maritime heritage, and we are taking action to ensure its success long into the future. Where the SNP won’t back Scottish industry, young people or our national security, Labour will step in,” Healey declared, as reported by multiple UK outlets. He emphasized that recent initiatives—including record defence exports—are aimed at “making Scotland a shipbuilding superpower once again.”
The Welding Development Facility is just one piece of a broader package outlined in the Defence Industrial Strategy. This includes a new Defence Growth Deal for Scotland and a UK-wide skills programme worth £182 million to expand the defence workforce. The investment is intended to safeguard jobs in Clyde shipbuilding and support the wider industry at sites such as Rosyth and Methil, ensuring that Scotland remains at the forefront of maritime engineering and defence.
The political backdrop to Labour’s announcement is anything but calm. The origins of the controversy lie in the Scottish Government’s earlier refusal to fund the welding centre, citing a longstanding policy against public investment in projects involved with “munitions.” This stance, enforced by the Scottish Enterprise quango, put the future of the welding centre in jeopardy—until Labour’s intervention. The SNP’s position was soon reversed after criticism, with First Minister John Swinney eventually scrapping the contentious munitions policy. Still, by then, the damage in perception was done.
The welding centre is part of a joint initiative promoted by the University of Strathclyde and Malin Group, forming a cornerstone of the long-planned Scottish Marine Technology Park at Old Kilpatrick in West Dunbartonshire. The facility’s backers argue it will train the next generation of shipbuilders and provide a steady stream of skilled workers to support both current and future shipbuilding contracts.
Scottish Labour leader Anas Sarwar has been vocal in his criticism of the SNP’s approach, describing the Scottish Government as “knackered and out of touch” during his own address at the Labour Party Conference. He accused the SNP of failing to make good use of the extra £5.2 billion in funding provided to the devolved government since Labour came to power at Westminster, and pointed to persistent problems in the NHS and other public services as evidence. “Scotland has world-class skills and a proud shipbuilding tradition, but time and time again they have been failed by the SNP. Once again this is Labour proving that we are the only party that will back investment to protect our security and support high paid jobs,” Sarwar stated.
Labour’s recent defence deals have been a particular point of pride for the party. The government recently secured a £10 billion shipbuilding order for the Clyde—the largest export deal in the history of UK shipbuilding—which will see at least five Type 26 frigates built at the BAE yards at Govan and Scotstoun for the Norwegian navy. According to the Ministry of Defence, this deal will secure 2,000 shipbuilding jobs on the Clyde into the 2030s, along with another 2,000 jobs in the supply chain. These yards are already engaged in building Type 26 frigates for the Royal Navy, and the new Norwegian contract is expected to further cement Glasgow’s reputation as a global centre for naval engineering.
Yet, the political wrangling hasn’t stopped. Labour has repeatedly accused the SNP of not sufficiently championing Scotland’s defence industry, with Defence Secretary Healey asserting, “You know who won’t back defence jobs? The Scottish Nationalists. They refused to fund a new advanced welding centre in Glasgow, so I can announce today that the Labour Government now will step in and provide the funding needed – they won’t, we will.” Healey also contrasted Labour’s record with those of the Conservatives, Liberal Democrats, and Reform, claiming Labour is “the party growing jobs and growing the army, the party facing down Russia and strengthening Nato.”
Rachel Reeves, the Shadow Chancellor, also weighed in, saying, “I’m proud to see the British shipbuilding industry going from strength to strength. Just last month, a record £10bn export order from Norway for Scottish-built frigates.”
SNP leaders, meanwhile, have pushed back. First Minister John Swinney, responding to Prime Minister Keir Starmer’s claim that he was “perplexed” by the SNP’s lack of enthusiasm for the £10 billion Norwegian deal, told reporters, “This is a welcome investment made by the Norwegian government. It demonstrates the strength and capability of the BAE yard at Govan, and the strengths and skills in Scotland.” A Scottish Government spokesperson added that Scottish Enterprise “did not receive a formal application for funding from Malin,” and highlighted that over £90 million in funding has been provided to aerospace, defence, and shipbuilding sectors since 2006/07. “We continue to support the defence sector, particularly regarding workforce development, which is fundamental to our national security and a strategic driver for Scotland’s economy,” the spokesperson said.
Despite the SNP’s efforts to defend its record, Labour has seized the moment to pitch itself as the true champion of Scotland’s industrial future. Anas Sarwar closed his conference speech with a call for ambition, asserting that Labour represents “a new direction” ahead of the May 2026 Scottish election. “While the SNP turns its back on our national security and on Scottish workers, Labour is stepping up to safeguard jobs, strengthen our defences and invest in the next generation. This new welding facility is proof that when Scottish Labour and UK Labour work hand-in-hand, we can deliver the new direction and the new opportunities that Scotland needs,” he said.
The battle for Scotland’s shipbuilding future is far from over, but this week’s developments have made one thing clear: both the fate of high-skilled jobs and the rhetoric around national security will be central issues as the country approaches its next election.
