Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, if he will introduce financial (a) incentives and (b) guarantees to encourage (i) banks and (ii) investment firms to support the defence sector; and what assessment he has made of the potential impact of restricted access to capital on the UK’s defence (A) industrial base and (B) procurement strategy.

The Secretary of State for Business and Trade met representatives of the defence and financial services industries on 12 December 2024, to discuss how environmental, social and governance (ESG) principles are being applied to companies in defence and the impact they are having on investment and access to financial services. The discussion highlighted that there are multiple stakeholders and issues within the sectors and within government. The Department is now following up on that discussion across government and wider to find the best way to address them, to ensure that ESG policies do not have unintended consequences for the health of the defence sector.