Scottish Government suspends public money to companies arming Israel

The Scottish Government has suspended new awards of public money to defence firms supplying Israel.

National development agency Scottish Enterprise will be instructed not to provide support for trade between Scotland and Israel as part of measures announced today by the first minister.

John Swinney said: “In the face of genocide, there can be no ‘business as usual’.”

The SNP administration has faced years of complaint over awards of taxpayers’ money to companies working in the defence sector, with the Scottish Greens often leading calls to cut off support.

Today’s move was welcomed by that party and will see awards of public cash paused to defence firms making products or services provided to countries “where there is plausible evidence of genocide being committed” by authorities, including Israel.

Ministers have committed £400,000 to the Kids Operating Room charity for a field hospital in Gaza, where the death toll has passed 63,000. Up to 20 injured children and their families are expected to arrive in Scotland for medical help this month.

Another £600,000 has been committed to a UN-led fund providing food, sanitation, shelter and other supports.

The defence funding decision does not apply to companies involved in arming Ukraine, but those found to be supplying Gaza will be ineligible for Scottish Government monies.

Swinney, whose predecessor Humza Yousaf has lost extended family members in Gaza, said: “The situation in Gaza is a man-made humanitarian catastrophe. We must confront this crisis with urgency, compassion, and an unwavering commitment to accountability.

“This government has consistently and unequivocally condemned the terrorist attacks carried out by Hamas. We have joined the international community in demanding the immediate and unconditional release of all hostages.

“But I share the concerns of other countries and international leaders that a genocide appears to be unfolding in Gaza. The legal determination of genocide is the responsibility of international courts. But governments must act now.”

Calling on the UK Government to recognise Palestinian statehood – a matter Keir Starmer has said is contingent on conditions including a bar on Hamas involvement in a future Palestinian government – Scottish ministers have also urged the prime minister to withdraw from the UK-Israel Trade and Partnership Agreement.

Ministers also want a prohibition on the import of goods produced in Israeli settlements in the Occupied Palestinian Territory and an end to all military cooperation with Israel, as well as a commitment to implement arrest warrants for key Israeli figures including Benjamin Netanyahu issued by the International Criminal Court.

Swinney said: “We are witnessing a humanitarian disaster of historic proportions. And yet, the bombs continue to fall. The world cannot wait for a final court ruling before acting. The signs are clear. The alarm has been raised. The bombs and rockets must stop. Humanitarian aid must flow. 

“The international community, including the UK Government, must recognise a Palestinian state as the first step towards peace and a two-state solution. A solution where the peoples of both Israel and Palestine can live side-by-side in peace and security.

“Acknowledging that we are witnessing the signs of genocide brings with it a responsibility to act. The people of Scotland expect no less of us.”

However, Scottish Conservative leader Russell Findlay called on Swinney to focus on solving Scottish problems and warned that Scotland's Jewish community would not welcome the immediate recognition of Palestinian statehood.

Findlay said: “We must never forget the Hamas atrocity on 7 October 2023, and we are all deeply disturbed by the horrors of what is happening in Gaza with so many innocent civilians killed while others starve.

“Events in the Middle East are a blight on humanity, and I don’t doubt the First Minister’s sincerity. But I also believe that this parliament should focus on the powers it has to improve people’s lives here 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. 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.”

In contrast, new Scottish Greens co-leader Ross Greer said the government “can and we must go further”, recalling how the Scottish Government called on businesses to cut trade with Russia after the invasion of Ukraine.

Greer said: “Palestinian lives are worth no less than Ukrainian or Scottish lives, so our actions in support of Palestine must equal the efforts we have taken for Ukraine. That must mean boycotts, divestments and sanctions against Israel and its collaborators.”