THE Scottish Government has been accused of “smoke and mirrors” after declining to reveal which companies are banned from receiving public money under a new policy prohibiting grants to arms firms dealing with Israel.
However, Scottish Enterprise – the government’s economic development agency – did confirm that 13 firms had been identified “as ineligible for support under this policy”.
On September 3 last year, the Scottish Parliament voted for an immediate boycott of Israel. Supporting a Green amendment to an SNP motion, MSPs voted for the “Scottish and UK Governments to immediately impose a package of boycotts, divestment and sanctions targeted at the state of Israel and at companies complicit in its military operations and its occupation of Palestine".
On the same day, First Minister John Swinney told MSPs that the Government would “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 committed”. He added: "That will include Israel."
However, questions have since arisen as to how the boycott is being put into practice, which arms firms are banned from receiving funds, and what updated guidance on the human rights grounds considered by the grant-making agency Scottish Enterprise actually says.
A Freedom of Information (FOI) request submitted by Amnesty International and seen by The National showed that the agency refused to say which companies were banned from receiving public funding under the genocide policy.
The FOI refusal states: “Disclosing the names of companies that have been identified as ineligible for support on the basis of this policy (‘ineligible companies’) would be likely to adversely affect their commercial interests.
“Some of the ineligible companies have only limited connections to the defence sector, and some may not be publicly associated with the defence sector …
“A number of companies that are publicly associated with the defence sector have in recent times been the target of protests, vandalism and sabotage activity. Scottish Enterprise considers that disclosure would expose the ineligible companies to new or increased threat of such attacks, with significant risk of harm to their commercial interests accordingly.”
However, the agency added: “Although Scottish Enterprise has decided that the requested information is exempt from disclosure, we can share that we have identified 13 companies as ineligible for support under this policy.”
“Such companies may be ineligible for reasons other than the company carrying our ineligible activities, such as withdrawing or not concluding the process.”
Amnesty is due to meet with Scottish Economy Secretary Stephen Flynn on September 3 to outline their concerns, The National understands.
Neil Cowan, Scotland programme director at Amnesty International UK, said: “It has been 365 days since this Government recognised the genocide in Gaza and accepted that public funding decisions must reflect that reality. Since then, there have been more questions than answers as Scottish Enterprise have refused to disclose how the 'ban' is operating in practice.
"The Scottish public deserves more than smoke and mirrors in response to questions about how policy commitments are being implemented and public money is being spent. On matters as important as genocide, people are rightfully seeking assurance that the process of giving public money to defence companies is transparent and robust.”
Cowan added: "As Economy Secretary, Stephen Flynn must provide answers to these questions.
“We urge him to intervene and offer the clarity which Scottish Enterprise has so far failed to provide."
Oxfam Scotland also called on the Scottish Government to make information about how Scottish Enterprise is applying its human rights safeguards to arms companies public.
Katherine May, the head of Oxfam Scotland, said: “Gaza’s horror has not ended. At least 73,000 people have been killed, almost the entire population has been driven from their homes, and countless bodies remain buried beneath the rubble, including children who should have had their whole lives ahead of them.
“Against this backdrop, the Scottish Government promised that Scottish taxpayers’ money would not bankroll arms companies linked to these atrocities. Yet a year on, Scottish Enterprise still refuses to publish its human rights due diligence policy or show how it is making sure that promise is being kept.
“If there is nothing to hide, the Economy Secretary should instruct Scottish Enterprise to publish the information and show the Scottish public that these safeguards are actually being enforced.”
Quakers in Scotland added their voice to the calls, with clerk Pleasaunce Perry saying: "Our faith teaches us that there is that of God in everyone, so every life lost to conflict matters. That's why we wrote to Stephen Flynn in July calling for transparency over Scottish Enterprise's human rights checks.
“With our letter still unanswered, we are urging him to release the findings so Scotland is not left complicit, even indirectly, in grave human rights abuses.”
A Scottish Enterprise spokesperson said: “Scottish Enterprise has implemented Scottish Government's defence policy in full, in line with guidance set by Scottish Government.
“Scottish Enterprise is committed to operating in a transparent and accountable manner, and information requests are considered and responded to in accordance with Freedom of Information requirements, including careful consideration of the public interest in disclosure.”
A Scottish Government spokesperson said: “As one of the first governments to call for a ceasefire, the Scottish Government has been a clear and consistent advocate for peace, justice and human rights in Gaza. We have taken the most direct and effective action within our own powers to press for an immediate and lasting resolution and an end to the suffering of the Palestinian people.
“In September 2025, the Scottish Government announced a comprehensive package of economic and humanitarian measures in response to the genocide in Gaza. This included a pause on new awards of public money to defence companies whose products or services products are provided to countries where there is plausible evidence of genocide being committed by that country. This measure was implemented immediately and remains in effect."
