Ministers urge banks to step up support for defence industry
The Business Secretary and minister for defence procurement are hosting a meeting with bosses across the defence and finance sectors.
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Your support makes all the difference.Ministers are calling on banks and investors to step up support for the UK’s defence sector despite pressure from activists over ethical concerns.
Business Secretary Jonathan Reynolds and minister for defence procurement Maria Eagle are hosting a meeting with bosses across the defence and finance sectors on Thursday.
The meeting will “focus on navigating environmental, social and governance (ESG) principles and how they can pose challenges to growth and attracting investment”.
Mr Reynolds said they will discuss how to grow the economic potential of the defence industry and the “changing perceptions of it among investors”.
Our world-leading defence sector is vital to the economy, supporting thousands of high-skilled, high-paid jobs across the UK
He will urge banks to consider their environment and social policies without reducing financial support for the sector.
Data from the London Stock Exchange last year showed that UK funds had cut their investment in defence companies, such as BAE Systems, by 9% since the start of the previous year.
The meeting also comes after a raft of anti-war protests against banks by activist organisations such as Palestine Action.
Mr Reynolds said: “Our world-leading defence sector is vital to the economy, supporting thousands of high-skilled, high-paid jobs across the UK.
“With our Industrial Strategy we’re taking the pro-business, pro-growth approach the sector needs to drive investment in every part of the country.
“This Government is committed to working together with industry to tackle the challenges they face to attracting investment, and that’s why roundtables like these are so important as we work to give investors the confidence they need for years to come.”
Kevin Craven, chief executive of ADS, said: “Our defence sector not only underpins our national security and deterrence capability, but also provides jobs to more than 164,000 people directly throughout the country.
“For our sector to continue to deliver the social value it is renowned for – alongside its role as a key driver of economic growth – government’s engagement with industry is pivotal to strengthen the UK’s position as a place for defence companies to invest and grow, and from which to export.”