Defence, Security and Resilience Bank

Lord Spellar Excerpts

Tuesday 19th May 2026 Lords Chamber

[Lord Livermore (Lab)]

As I am sure the noble Lord knows, the defence investment plan is the first zero-based review of defence spending in almost two decades. It will set out the MoD’s plans to ensure that resources are directed effectively to meet its priorities. The Government are working hard to facilitate this and to ensure that it delivers the outcomes the UK needs for defence and for taxpayers, and it will be published shortly.

[Lord Spellar (Lab)]

My Lords, does my noble friend the Minister accept that there is a significant problem of access to finance for the defence industry, particularly for medium and small enterprises, driven partly by absurd bans on investment in our national defence by financial institutions? Given the failure, frankly, of the City and the Government to address this systemic problem, should we not at least give serious consideration to, and engage in discussions on, this initiative from the Canadian Prime Minister, Mark Carney?

[Lord Livermore (Lab)]

I agree with much of my noble friend’s analysis, but they are two slightly separate issues. The Government have been very clear that there is nothing contradictory between ESG considerations and defence, and that no company should ever be denied access to financial services solely on the basis that they work in the defence sector. The Government are working closely with the defence sector and with financial services to identify the extent of this issue, to reduce barriers to essential banking services and to support a resilient defence industry. More widely, the proposed multilateral defence mechanism will help improve value for money and address fragmentation in the defence sector through joint procurement. It will support greater standardisation and interoperability, helping to ensure that allies’ capabilities work together more effectively. It will increase the availability of munitions and other critical capabilities when we need them most. It will support a more resilient and efficient defence industrial sector, and it will accelerate defence sector investment.