Denial of Banking Services: UK Defence Sector

Lord Stirrup Excerpts

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.