Strategic Priorities Statement: Defence

Lord Jackson of Peterborough Excerpts

Tuesday 25th March 2025 Lords Chamber

Asked by

[Lord Jackson of Peterborough]

To ask His Majesty’s Government why the Chancellor of the Exchequer did not specifically include the defence industry among the priority sectors in her Statement of Strategic Priorities to the National Wealth Fund, published on 19 March.

[The Financial Secretary to the Treasury (Lord Livermore) (Lab)]

My Lords, consistent with the Government’s manifesto, the National Wealth Fund supports the growth and clean energy missions, prioritising investment in advanced manufacturing, digital technologies, clean energy and transport. Recognising the need to adapt to a rapidly changing world, the statement of strategic priorities set out that the National Wealth Fund will also invest in dual-use technologies which support the UK’s defence and security, and will support the wider industrial strategy, including in defence.

--- Later in debate ---

[Lord Jackson of Peterborough (Con)]

My Lords, the EU has apparently taken the decision to shut the UK out of its €150 billion defence fund unless we acquiesce on a new fishing agreement. Clearly, the Macron Administration and the EU seem to care more about fish than our collective defence. In addition, domestic pension funds like NEST and the People’s Pension have refused to invest in defence firms on so-called ethical grounds. Given these acute challenges, does the Minister agree that the Chancellor’s decision further weakens and undermines a crucial sector? Will he implore his ministerial colleagues to reconsider their priorities so that there is proper consistency in government?

[Lord Livermore (Lab)]

I am grateful to the noble Lord for his question, but I am not sure he listened to the first Answer I gave. I very clearly said that the statement of strategic priorities sets out how the National Wealth Fund will invest in defence. It says very clearly that it should invest in

“dual-use technologies and … support supply chain resilience across these priority sectors, to better support the UK’s defence and security”.

It also says that the National Wealth Fund

“should consider the role it can play in supporting the delivery of the wider Industrial Strategy, including in defence”.

That wider industrial strategy absolutely achieves many of the things the noble Lord is talking about. The strategic aim of the defence industrial strategy is to make sure that the imperatives of national security and a high-growth economy are fully aligned.