Denial of Banking Services: UK Defence Sector

Debate between Baroness Smith of Newnham and Lord Livermore

Wednesday 4th June 2025 Lords Chamber

[Lord Livermore (Lab)]

I am grateful to the noble Lord for his Question, and I am happy to say that to all three of his supplementary questions the answer is yes. I agree with a lot of what he says. Access to finance is a significant issue for defence SMEs, and as a result it will be one of the key considerations for the forthcoming defence industrial strategy. It is not entirely clear-cut that all those access to finance issues are a result of ESG considerations; there are many more, and it is quite a complex picture. As for the noble Lord’s three questions, we recognise that the ESG market has developed quickly and without formal oversight, leading to some stakeholders raising significant concerns. To address those concerns, the Government will lay secondary legislation later this year to bring ESG ratings providers into regulation so that they are subject to rules set by the FCA. We have also set defence as one of the priority sectors that we want the National Wealth Fund to invest in—I think that was the noble Lord’s second question. Finally, we are working closely with the banking sector to make sure that it understands the importance of the defence sector to the economy.

[Baroness Smith of Newnham (LD)]

My Lords, apart from ESG questions, there are wider questions about investment in defence companies. I declare an interest as an academic. Obviously, often it is students, and some of my colleagues as academics, who may think that the defence sector is not suitable to invest in, just as they are not keen to invest in tobacco or oil. What can His Majesty’s Government do to help launch the national conversation that the strategic defence review says we need to help people, not just the banks but other investors, understand that we need to work with defence companies, because the defence of the realm is the most important duty of the state?

[Lord Livermore (Lab)]

I was not quite sure where the noble Baroness’s question was going, but I definitely agree with where it ended up. The Government have made it absolutely clear that we consider defence an ethical investment. We do not see a conflict between sustainable investment and investment in our world-leading defence sector. At the end of the day, it is not for the Government to tell investors what they can and cannot invest in, but at a time of increasing geopolitical instability, supporting the defence sector has never been more critical.

Strategic Priorities Statement: Defence

Debate between Baroness Smith of Newnham and Lord Livermore

Tuesday 25th March 2025 Lords Chamber

[Lord Livermore (Lab)]

I very much agree with the noble and gallant Lord. I hope those issues will be addressed through the Prime Minister’s work with the European Union on defence and security co-operation, and in the defence industrial strategy and the wider EU reset.

[Baroness Smith of Newnham (LD)]

My Lords, it is clearly welcome that the strategy includes defence. What support are His Majesty’s Government planning to give to small and medium-sized enterprises working in dual-use technology? Are His Majesty’s Government thinking about letting contracts in the short to medium term, so that, as we build up our defence expenditure towards 2.5%, the companies have the certainty of knowing that there will be contracts?

[Lord Livermore (Lab)]

I am grateful to the noble Baroness for her question. The issues she raises will be addressed exactly by the defence industrial strategy. One of its key objectives, for example, is procurement—increasing its pace and opening it up to small and medium-sized enterprises, as she said. I hope that there will be more for her to hear in tomorrow’s Spring Statement.

National Insurance Contributions (Secondary Class 1 Contributions) Bill

Debate between Baroness Smith of Newnham and Lord Livermore

Committee stage
Tuesday 21st January 2025 Grand Committee

[Baroness Smith of Newnham (LD)]

Can the Minister clarify something? I understood that the national insurance contributions relief for veterans had been extended for one year and that this Bill was not going to affect veterans. Surely at some point it cuts out. Is that correct, so that this would be valid only up to 2026?

[Lord Livermore (Lab)]

The noble Lord, Lord Altrincham, set out in his speech that it was extended year by year under the previous Government. This Government have done the same thing and have extended it for a further year.

On the basis of what I have set out, I hope the noble Baroness will feel able to withdraw her amendment.

[Baroness Smith of Newnham (LD)]

I thank all noble Lords who have contributed to the group, and I beg leave to withdraw the amendment.