Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether she is taking steps to help ensure that SME firms with defence contracts are not de-banked by financial institutions.

The government recognises that access to banking services is vital for people and businesses across the UK. It is this government's firm position that no firm should be denied access to banking services solely on the grounds they work in defence. The upcoming Defence Industrial Strategy will have SMEs at its heart, and will lay out the steps we are taking as government to support defence SMEs.

The government has already legislated to strengthen protections for customers. From April 2026, banks and other providers will be required to give customers a longer notice period of at least 90 days and to provide customers with a sufficiently detailed and specific explanation before they terminate services. This will give people and businesses the time and information they need to challenge decisions or find an alternative provider.

We continue to monitor wider access to bank account provision but recognise this is largely a commercial matter. Firms have strict obligations to ensure the legitimacy of a business and protect against financial crime.