The chancellor pledged to find about £5bn to fund the Defence Investment Plan, citing cuts across UK government departments.

Babcock’s yard at Rosyth in Fife is one of the sites hoping to benefit from the increased spending.

The 2,100-strong workforce is currently assembling Type 31 Frigates for the Royal Navy inside a vast build hall.

Babcock is also developing high-tech computer systems which allow those vessels to control a fleet of sea drones at a range of more than 100 miles.

Rhea Wolfson, GMB Scotland secretary, said the budget could be “a watershed moment when increased defence spending kick-starts the reindustrialisation of Scotland”.

While increased defence spending could boost naval bases and dockyards in Scotland, spending cuts across Whitehall departments will have knock-on effects for the Scottish Budget.

Other announcements affecting people in Scotland included:

Increases in both the National Minimum Wage and the National Living Wage by 3.9%

Pensioners on low incomes to be shielded from income tax when the state pension increases

The extension of the 5p cut to fuel duty until 30 June 2027

Import taxes to be removed on more than 100 food products, including gherkins and marmalade, as well as kerosene and fertilisers

£18m for an advanced chip design project led by the University of Edinburgh

£6m to expand Glasgow’s Scottish Event Campus

£20m to set up “defence technical excellence colleges” in the east and west of Scotland

Scottish Secretary Doulgas Alexander said: “This is a budget that puts money back in the pockets of Scottish households, backs businesses, and puts Scotland firmly at the heart of the UK government’s plan for growth and reindustrialisation.”

Scottish Labour leader Michael Marra said that extra funding from the UK government’s £100 payment scheme “should be used to give Scots breathing space, not to plug holes in the Scottish Government Budget”.

The SNP’s economy spokesperson at Westminster, Kirsty Blackman, said: “Andy Burnham promised to cut the cost of living but every major household bill has increased on his watch – and the UK budget completely fails to address the scale of the challenge families are now facing.”

She added: “And at a time when energy bills will soon be more than £1,000 higher than promised, the Labour Party’s gas price hike will disproportionately increase costs for people in Scotland.”