Scottish Government halts cash for arms companies supplying Israel and flies Palestinian flag

Key Points

Scottish Government halts funding to arms companies who sell weapons to Israel
Scottish Government flies Palestinian flags outside office buildings
First Minister of Scotland urged the UK Government to immediately recognise the state of Palestine
Tory leader says Holyrood should focus on powers to ‘improve people’s lives here in Scotland’
Scottish Labour dubbed Israeli Prime Minister Benjamin Netanyahu a ‘war criminal’

The Palestinian flag has been flown outside Scottish Government buildings as the First Minister announced funding to arms companies that sell weapons to Israel had been paused.

John Swinney announced a range of actions the Scottish Government is to take in response to the “unacceptable” situation in Gaza.

This included announcing a removal of support by Scottish Government officials and bodies from facilitating trade with Israel.

A street strewn with rubble following an explosion in the Saftawi neighbourhood, west of Jabalia in the northern Gaza Strip on August 25, 2025. Getty Images

The Scottish First Minister also announced a pause in new awards to arms companies whose products or services are provided to the Israeli military.

This included funding via Scottish Enterprise and the Scottish National Investment Bank. The cash, according to ministers, is usually provided for apprenticeships with arms firms.

The Scottish Government has been criticised for previous support of such firms, including funding for apprenticeships.

“We will pause new awards of public money to arms companies whose products or services are provided to countries where there is plausible evidence of genocide being commited by that country – that will include Israel,” Swiney told the Scottish Parliament on Wednesday.

“No public monies should got to arms companies involved with the Israeli military.”

The Palestinian flag was raised in front of Scottish Government buildings St Andrew’s House and Victoria Quay.

Swinney called on the UK Government to immediately recognise the state of Palestine and withdraw from the UK/Israel free trade agreement.

Scottish Conservative leader Russell Findlay described the situation in the Middle East as a “blight on humanity”, but added he believes “this Parliament should focus the powers it has to improve people’s lives here in Scotland”.

The First Minister said he spoke in Holyrood on Tuesday on Scottish issues and will be answering questions on Thursday, also pointing to the changes in the statement which are within the powers of the Scottish Government.

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 Green co-leader Ross Greer welcomed the First Minister’s announcement but called on him to go further and urge all Scottish businesses to boycott Israel, which Swinney declined to do.

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.

Swinney said Scotland is “willing to be as helpful as we can to as many families as we can”.