Defence Funding

Lord Campbell-Savours Excerpts

Thursday 16th May 2024 Lords Chamber

[Baroness Vere of Norbiton (Con)]

As I have outlined, the Government will use existing resources to fund this increase in defence spending, but my noble friend makes an important point: our superb defence industry needs investment. Although the Government are the main customer of the defence industry, as are exports, these are of course private companies and they do need investment. There are some reports that defence is being excluded on ESG grounds. The Government have confirmed and are absolutely committed to the fact that investment in good, high-quality, well-run defence companies is compatible with ESG considerations.

[Lord Campbell-Savours (Lab) [V]]

My Lords, with the green savings bonds success in mind, would not it be appropriate, while considering the benefits and viability of a defence bond, to complement its introduction with the issue of a peace bond: a bond that invests in NGOs that promote conflict resolution, peace initiatives, international understanding, political exchange and sensitive and constructive media intervention overseas; a bond that funds a fostering of links and exchange with more problematic parts of the world; a bond that tempers the slide to conflict and war?

[Baroness Vere of Norbiton (Con)]

My Lords, as I have already set out, the Government are not about to start a plethora of different bonds for different measures, but the noble Lord is right that the green bonds have been successful. The funds raised from those bonds have been invested in things such as cycling and walking, electric vehicle home-charging, plug-in grants for cars and vans, and the Nature for Climate Fund.