Lord Lee of Trafford

It is clear that the use of digital or “virtual” platforms can provide benefits to both companies and shareholders in the context of annual general meetings and indeed “hybrid” meetings, which provide a combination of physical and virtual access, are already relatively commonplace. While the Government committed last Autumn to clarifying the law around wholly virtual general meetings, we fully recognise the importance of shareholder rights. Therefore, the appropriate safeguards will be considered as part of any legislative changes. My officials will continue to develop this policy and work towards a position that balances the interests of all relevant stakeholders.

The Takeover Code, which has a statutory basis under the Companies Act 2006, sets out a clear and orderly framework for takeovers, including measures to ensure fairness to shareholders. The Code is issued and administered by the independent Panel on Takeovers and Mergers. The Panel has enforcement powers for breaches of the Code. Changes to the Code itself are a matter for the Panel.

The Government has no plans to review the duties of public company directors in relation to informing shareholders of a takeover approach. Directors owe a number of fiduciary duties to shareholders, including the need to exercise reasonable care, skill and diligence, and to promote the success of the company for the benefit of its shareholders as a whole.

The Government is committed to incentivising greater saving and investment, to help people save for their future goals and build greater financial resilience. The Government offers a generous tax treatment on Individual Savings Accounts (ISAs) to support people of all incomes and at all stages of life to save.

Individuals can currently save or invest up to £20,000 per year in an ISA, with all income and gains received in the wrapper received tax-free.

The Financial Services Growth & Competitiveness Strategy Call for Evidence, which closed on 12 December, asked how increasing retail participation in capital markets could support long-term sustainable growth within the sector and the wider economy. The call for evidence welcomed further evidence on how to improve consumer engagement with investing, and the Government is considering the feedback provided.

The Government is looking at options for reforms to ISAs that get the balance right between cash and equities to earn better returns for savers, boost the culture of retail investment, and support the growth mission.

The Government keeps all aspects of tax and savings policy under review.

The Government wants to see more consumers participate in capital markets and benefit from the long-term financial security that investing can provide.

The Financial Services Growth & Competitiveness Strategy Call for Evidence, which closed on 12 December, asked how increasing retail participation in capital markets could support long-term sustainable growth within the sector and the wider economy. The call for evidence welcomed further evidence on how to improve consumer engagement with investing, and the Government is considering the feedback provided.

More broadly, the Government is committed to boosting our capital markets to deliver growth across the UK and is pursuing ambitious reforms to make our markets even more competitive. For example, reforms to the Prospectus rules will give investors, including retail investors, access to better quality information and so participate more easily in the capital raising process. The Government is also working with the FCA to review the boundary between financial advice and guidance, to ensure consumers get the support they need to make decisions about their finances.

The Pensions Investment Review has put forward ambitious proposals to reform the UK pension system, which includes encouraging further pension investment into UK assets to boost growth across the country, and will publish its final report in the Spring.

HMG has been actively engaging with the defence industry, trade associations and the financial services sector regarding access to financial services for defence companies.

Decisions regarding the provision of financial services to businesses are primarily a commercial decision, where banks and insurers will need to make an assessment of the relevant risks and conduct appropriate due diligence.

In a time of increasing geopolitical instability, maintaining a robust and thriving defence sector is essential to our national security. No company should be denied access to financial services purely on the basis that they work in Defence.

This Government is committed to bringing forward a Defence Industrial Strategy which ensures the imperatives of national security, and a high-growth economy are aligned. The Defence Industrial Strategy Statement of Intent, published in December 2024, recognised issues with regards to access to finance, including opening bank accounts or securing a loan. HMG is consulting with a wide range of stakeholders, including defence suppliers and financial institutions, to assess the ways in which we can reduce barriers and create a strong and resilient defence sector. We continue to invite all stakeholders to respond to the Defence Industrial Strategy Statement of Intent, either publicly or privately, by 28 February 2025.

The Royal Navy has successfully maintained Operation RELENTLESS – the Continuous At Sea Deterrent – without interruption for over 56 years. We do not disclose details of the operation, including the duration of time spent at sea, as such information could be used to undermine the security and capability of the mission and our personnel.

We take the security of all our bases overseas seriously and take appropriate measures for their protection. This process is continually kept under review.

The table below gives the overall expenditure on consultancies in the last five financial years by the Ministry of Defence, On Vote Agencies, Executive Non-Departmental Public Bodies and Other Bodies (such as the Commonwealth War Graves Commission, Royal Hospital Chelsea, the Reserve Forces and Cadet Associations and International Military Services Ltd.).

On 1 April 2024, the Ministry of Defence (MOD) civilian personnel headcount was 63,702.

The below table show the MOD civilian personnel headcount for the past five years, as at 1 April.

This data excludes Non-Departmental Public Bodies, Short-Term Employees and Contractors.

Statistics on the number of civilian personnel employed by the MOD by both headcount and FTE are published by the Office for National Statistics on gov.uk at the following link:

https://www.gov.uk/government/statistics/mod-biannual-civilian-personnel-report-april-2024/mod-biannual-civilian-personnel-report-april-2024