THE Scottish Government is facing questions after files released to the Sunday National revealed it gave millions in funding to weapons firms linked to Israel last year.
The documents obtained under Freedom of Information laws show that Scottish Enterprise – the government’s economic development agency – gave more than £5.5 million to Israel-linked arms firms in the year ending March 31, 2026.
The £5.5m total represented two-thirds (67%) of all the funding given to firms in the aerospace, defence, marine, and security (ADMS) sector in that financial year.
The timing of the funding has raised eyebrows, however, because First Minister John Swinney announced on September 3, 2025 that the Scottish Government would not give any new funding to arms firms who deal with Israel or any nation “where there is plausible evidence of genocide”.
Scottish Green MSP Patrick Harvie called on Swinney to “urgently confirm when these grants were awarded” and “prove that not a penny was paid” after the pause on funding was announced.
The files released to The Sunday National show that in the 2025-26 financial year:
- Raytheon Systems was given £710,000. Raytheon is one of the largest suppliers of weapons to the Israel Defense Forces (IDF), providing the Phalanx close-in weapon system for warships, guided air-to-surface missiles, "bunker buster" bombs, and laser-guided bombs.
- Thales UK was given £467,401. Thales operated a joint venture with Elbit Systems – Israel’s largest weapons firm – to produce the Watchkeeper drone. However, Elbit bought Thales out in January 2026.
- BAE Systems was given two grants, one of £900,000 and one of £1.44m. BAE Systems constructs parts for the F-35 "Adir" jets which Israel has used in Gaza airstrikes. It also produces the M109 howitzer, which has been the IDF’s principal artillery system but is now being replaced.
- Leonardo UK was given £648,568. Leonardo manufactures laser-targeting systems for the F-35 jets that Israel uses in Gaza, supplies naval guns fitted on Israeli warships, and provides radar components for Elbit’s Iron Fist system.
- Chemring Energetics UK was given £1.2m. Chemring group companies have held 19 UK export licences to Israel since 2008, and its Australian subsidiary supplies infrared countermeasures for the F-35 programme.
- Rosyth Royal Dockyard – which is owned by Babcock Marine — was given £200,000. Babcock has applied for 12 UK arms export licences to Israel since 2008, and has worked with Elbit Systems and Rafael – a state-owned Israeli weapons firm. However, the company states it does not directly supply defence equipment to Israel.
In total in 2025-26, Scottish Enterprise gave £5,525,969 to the six firms listed above, out of £8,208,715 given to the ADMS sector overall.
A spokesperson for Scottish Enterprise said that the ban on new awards to companies linked with Israel is in place, and that grant payments made after the First Minister’s September 2025 announcement related to contracts which were in force before that date.
A Scottish Government spokesperson said the new rules were "not retrospective".
Harvie, the Scottish Greens’ economy spokesperson, said: “It is almost a year since the Scottish Parliament voted for my motion on boycott, divestment and sanctions against Israel. Yet the Scottish Government has dragged its feet and failed to turn a clear parliamentary vote into action.
“If a single penny was handed to any of these companies after Parliament’s vote, that would be a grave betrayal of what the First Minister promised and a direct breach of what MSPs voted for. We did not vote for empty words. We voted for action.
“Tens of thousands of Palestinians have been killed while companies supplying the machinery of war continue to profit. The fact that the Scottish Government funded these companies in the first place is deeply shameful. Continuing to do so after Parliament voted for a boycott would be indefensible.
“The First Minister must stop hiding behind warm words and come clean. He must urgently confirm when these grants were awarded, prove that not a penny was paid after Parliament’s vote, and set out exactly what he is doing to implement the decision.”
A spokesperson for Scottish Enterprise said: “Scottish Enterprise has implemented Scottish Government's defence policy in full, in line with guidance set by Scottish Government, which applies to new grant awards from September 4, 2025 onwards.
“Grant award payments made during 2025/26 include contractual obligations entered into prior to this date.”
A Scottish Government spokesperson said: “The Scottish Government has been a clear and consistent advocate for peace, justice and human rights in Gaza and other conflicts and we were one of the first governments to call for a ceasefire.
“The measures announced by the First Minister in September 2025 in response to the worsening situation in Gaza were implemented immediately. The measures apply to new requests for funding and are not retrospective.
“The funding for the companies identified relates to grants contractually agreed prior to September 2025. Since then, all requests for funding have been considered against the new policy.”
The International Court of Justice (ICJ) has previously ruled that there is an obligation under the genocide convention for states to act to prevent genocide "at the instant that the state learns of, or should normally have learned of, the existence of a serious risk that genocide will be committed".
