HBOS: Fraud Investigation

Debate between Lord Livermore and Lord Stirrup

Thursday 26th March 2026 Lords Chamber

[Lord Livermore (Lab)]

My noble friend is far more expert in these matters than me, and I think I agree with what he said. As I said, the Government share the frustration at how long processes related to this issue are taking to conclude. We very much hope that the findings of Dame Linda Dobbs’ review will be available very shortly. My noble friend mentioned the importance of the financial services sector, and I would like to reiterate that. The financial services sector is critical to the ambitions of our country; it is one of the largest and most productive sectors of the UK, worth around 9% of total economic output, employing 1.2 million people across the UK. So, I very much endorse what my noble friend says.

[Lord Stirrup (CB)]

Does the Minister accept that some of the difficult political challenges facing western societies today are a consequence of the destruction of the faith that people have in the effectiveness and fairness of the socio-political economic model following the financial crash of 2007 and the economic consequences? Therefore, issues such as the HBOS scandal are not just one-offs; they are not just a matter of dealing with certain financial consequences. If, as a society, we do not clearly address these things, the difficult political challenges that we currently see will continue and, indeed, get worse.

[Lord Livermore (Lab)]

It is very difficult to disagree with what the noble and gallant Lord says, and I am sure I agree with much of it. Substantial protections were put in place in terms of financial services after the financial crisis that he described, and those protections remain; that is, adherence to international standards, ensuring robust NRA remains in place, commitment to ring-fencing and the new FPC, FCA and PRA—that whole architecture. The reforms that were put in place post financial crisis are incredibly important in ensuring ongoing confidence in our financial services sector.

Tax Increases

Debate between Lord Livermore and Lord Stirrup

Thursday 10th July 2025 Lords Chamber

[Lord Livermore (Lab)]

In the spending review, the Government set out our spending plans and a fully funded path to spending 2.6% of GDP on defence. We have an ambition to increase it to 3% in the next Parliament, as the noble Lord knows. I will not speculate on the next Budget now. As I have said, there will be an OBR forecast in the autumn before the annual Budget and we will make decisions based on it, in the usual way.

[Lord Stirrup (CB)]

My Lords, just for clarification, the Minister said that the Government have an ambition to raise defence spending to 3% of GDP in the next Parliament. My understanding is that the Prime Minister has committed the UK to increasing it to 3.5% by 2035. Could the Minister please clarify?

Denial of Banking Services: UK Defence Sector

Debate between Lord Livermore and Lord Stirrup

Wednesday 4th June 2025 Lords Chamber

[Lord Livermore (Lab)]

No, I disagree with my noble friend on that point. As I said before, the ESG market has developed quickly and without formal oversight, so it is the responsibility of government to make sure that that sector is brought under the scope of regulation. As I have said, we will lay secondary legislation later this year to bring ESG ratings providers into regulation so that they will be subject to the rules set by the FCA. Once that legislation is passed, the FCA will consult on regulatory requirements for ESG ratings providers.

[Lord Stirrup (CB)]

My Lords, the Minister has said that it is not for the Government to tell banks to whom they should lend and in what they should invest, but it seems to me that the banks, particularly the large banks, are never slow to beg for public money when they get themselves into trouble. Should the Government not make it clear to those banks that they have a moral obligation to help to defend the public on whose money they depend in times of difficulty?

[Lord Livermore (Lab)]

I agree very much with what the noble and gallant Lord says. The Government have made it very clear that we consider defence an ethical investment. We do not see a conflict between sustainable investment and investment in our world-leading defence sector.

Strategic Priorities Statement: Defence

Debate between Lord Livermore and Lord Stirrup

Tuesday 25th March 2025 Lords Chamber

[Lord Livermore (Lab)]

I am very grateful to my noble friend for his question. He far more eloquently than me set out what I was attempting to say in my previous answer. He draws attention to the importance of reading the documents that are in your Question before tabling your Question.

[Lord Stirrup (CB)]

My Lords, has the Minister seen the recent piece in the Financial Times setting out the challenges posed to defence companies by the high level of friction within Europe-wide supply chains? This is not just a Brexit issue. Brussels has criticised the overregulation of intra-EU transfer of defence-related products. Does the Minister agree that we and our European partners need to address this issue as a matter of urgency if our defence industry is to develop the high degree of efficiency that is so necessary in the light of the serious challenges we face?

[Lord Livermore (Lab)]

I very much agree with the noble and gallant Lord. I hope those issues will be addressed through the Prime Minister’s work with the European Union on defence and security co-operation, and in the defence industrial strategy and the wider EU reset.