Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of whether banks and insurance companies are discriminating against defence firms; and what steps they intend to take in response.

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.