SNP halts cash for arms firms supplying Israel as munitions ban lifted
John Swinney said there could be no business as usual ‘in the face of genocide’.
Funding for arms companies supplying Israel will be halted, John Swinney has announced, as he lifted a long-standing ban on taxpayer support for munitions.
The First Minister said any defence company seeking support from the Scottish Government would now have to “demonstrate that its products are not involved militarily with Israel”.
Mr Swinney said there could be no business as usual “in the face of genocide”. However, he said existing apprenticeship funding contracts would be honoured.
The Scottish Government has long refused to provide funding to firms directly for the creation of arms, but it has offered money for other things, such as diversifying away from the munitions industry and apprenticeships.
The ban on “munitions” funding has been the subject of recent criticism, with the UK government accusing Scottish ministers of student union politics.
Addressing Holyrood on Wednesday as the Palestinian flag flew over Scottish Government buildings in Edinburgh, Mr Swinney said the situation in Gaza “is a man-made humanitarian catastrophe”.
He urged the UK government to recognise the state of Palestine and withdraw from the trade deal with Israel, telling MSPs there is a “prima facie case of genocide in Gaza”.
MSPs also voted 65 to 24 – with 26 abstentions – to back the recognition of a state of Palestine in a symbolic motion.
The First Minister said: “Defending our country – defending our continent – is a duty of government. Anyone watching the ongoing war in Ukraine would, I hope, recognise the reality of the importance of defence. Indeed, the invasion shows we live in a world in which our national security faces much greater and more immediate threats.
“In recognition of that changed international landscape, the Scottish Government will lift the restriction we have applied on the use of support for the production of munitions.
“But, in the face of genocide, there can be no ‘business as usual’. We are instructing relevant delivery bodies where possible not to provide support facilitating trade between Scotland and Israel.
“We will pause new awards of public money to defence companies whose products or services are provided to countries where there is plausible evidence of genocide being committed by that country. That will include Israel.
“Any defence company seeking support from the Scottish Government will have to demonstrate that its products are not involved militarily with Israel.”
The pause will cover the Scottish Government itself, the Scottish National Investment Bank and the nation’s enterprise agencies.
Elsewhere, Mr Swinney said 20 children injured in the crisis would be brought to Scotland for medical treatment, while £400,000 will be spent on the creation of a rapidly deployable hospital for use in Gaza.
Scottish Conservative leader Russell Findlay said the First Minister should focus on the power he had to improve lives in Scotland.
“Drug deaths are the worst in Europe again, many communities live in fear of violence and lives are being lost due to chronic problems in the NHS,” he said. “I would rather John Swinney provided a statement on these issues, for which he has responsibility.
“But since this is the statement before us, I am concerned by his demand to immediately recognise Palestine statehood. This will be seen by Scotland’s Jewish community and many others as premature, impractical and counter-productive.”
Scottish Labour leader Anas Sarwar said the situation in Gaza is “beyond intolerable” and he dubbed Israeli Prime Minister Benjamin Netanyahu a “war criminal”.
Scottish Liberal Democrat leader Alex Cole-Hamilton urged both governments to act “or the images of the children of Gaza should deserve to haunt us for 100 years”.
He went on to ask the First Minister of the possibility of more than the announced 20 children to be brought to Scotland for treatment.
Mr Swinney said Scotland is “willing to be as helpful as we can to as many families as we can”.
Scottish Green co-leader Ross Greer said: “I am glad that the Scottish Government has finally accepted the Scottish Greens' proposal to end all public funding for Israel's arms dealers.
“Israel is committing a genocide in Palestine. Scotland must play our part in ending this atrocity, not bankroll it by handing public cash to the arms dealers making it possible.”
The Scottish Association of Mosques welcomed Mr Swinney’s decision to pause public funding for arms companies supplying Israel.
Spokesman Omar Afzal said: "The First Minister has taken a necessary and principled step that shows moral leadership on the war on Gaza, and the ongoing humanitarian crisis.”
He added: "Scotland has set an important precedent; that governments must act where there is plausible evidence of genocide and violations of international law. We echo the First Minister's call for the UK Government to recognise the State of Palestine immediately, and to urgently review its trade relationship with Israel.”
Meanwhile Prime Minister Sir Keir Starmer met Spain’s Pedro Sanchez at Downing Street, where the two leaders both condemned the situation in Gaza.
The Spanish prime minister said Europe's response to the conflict has been a "failure" and risks undermining its global credibility.
Ahead of the meeting with Sir Keir, Mr Sanchez said the conflict represents "one of the darkest episodes of international relations in the 21st century".
"It is a failure," said Mr Sanchez, the first European leader to accuse Israel of committing genocide in Gaza.
As he and Sir Keir met in Downing Street's white room, the Prime Minister said the "terrible situation in Gaza " would be among the topics they would discuss, as well as the war in Ukraine, and trade ties between the UK and Spain .
The UK still intends to recognise a Palestinian state later this month, joining Spain and other European nations, Foreign Secretary David Lammy told MPs on Monday.
The UN's top court, the International Court of Justice (ICJ), is considering a case brought by South Africa that argues Israel is committing genocide.
The ICJ is yet to deliver a ruling and has granted Israel an extension until January 2026 to present its defence. Israel has said the ICJ case is motivated by antisemitism.
According to the Hamas-run Ministry of Health, more than 60,000 people have been killed in the conflict since October 2023 - when Hamas fighters attacked Israel - killing about 1,200 people.
UN agencies have said there is "man-made mass starvation" in Gaza, blaming Israel, which controls the entry of all supplies to the territory.
Israel has insisted there are no restrictions on aid deliveries and that there is "no starvation".
Earlier this week the International Association of Genocide Scholars (IAGS) said Israel's conduct met the legal definition as laid out in the UN convention on genocide.
The Israeli Foreign Ministry said the IAGS report was based on "Hamas lies" and poor research.
A spokesperson added that it was Israel that was the victim of genocide.
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