Scottish Government suspends funding to Israel linked arms firms

The Scottish Government has announced several measures to sanction the state of Israel and companies linked to its military operations in Gaza and the occupied Palestinian territories.

On 3 September 2025 in a statement to parliament, First Minister John Swinney announced the government would halt all new public funding for arms manufacturers supplying the Israel Defence Forces (IDF).

Under the proposals, defence contractors seeking grants or financial support from the government will be required to prove their products will not be used by the IDF.

The measures were confirmed after the Scottish parliament motion was passed with 62 votes in favour, 31 against, and 21 abstentions.

Swinney explained the motion as a response to the “catastrophe” occurring in Gaza, declaring that “in the face of genocide, there can be no ‘business as usual.’”

He stated: “The scale of suffering is unimaginable. Nobody can ignore it. We must confront this crisis with urgency, compassion and an unwavering commitment to accountability.”

The First Minister urged the UK Government to withdraw from the UK-Israel Free Trade Agreement and called for the “immediate recognition of the Palestinian State.”

Swinney also announced that 20 children injured in Gaza will be transported to Scotland for treatment.

As he delivered his speech, a Palestinian flag was raised above the Scottish Government’s headquarters at St Andrew’s House in Edinburgh. Swinney described it as a gesture of “Scotland’s solidarity” with Palestine.

Scottish Labour leader Anas Sarwar echoed the First Minister, describing the situation in Gaza as “beyond intolerable.”

He added: “The illegal occupation and genocide must end now.”

Sarwar’s remarks contrast with the position of Prime Minister Keir Starmer, who has never directly described Israel’s actions as genocide.

The Scottish Council of Jewish Communities has criticised Swinney’s announcement, condemning his “irresponsible” assertion “that Israel is engaged in a genocidal campaign against Palestinians.”

The Council raised concerns of “significant negative implications for our community here in Scotland.”

Swinney defended his government’s actions during his statement to parliament: “Let me be clear: I utterly reject antisemitism and all forms of racism and hatred.”

To conclude his statement, the First Minister told MSPs that “Scotland will always raise her voice in favour of peace and humanity.”

The Israeli military launched a campaign in Gaza following the Hamas attack on Israel on 7 October 2023, in which roughly 1,200 people were killed and 251 others were taken hostage.

According to Gaza’s Hamas-run health ministry, over 64,231 Palestinians have been killed in Gaza since the beginning of the conflict.

“Edinburgh parliament building” by samamsbury is licensed under CC BY-ND 2.0.