← Back to Westminster Hall Debates
Defence Sector Financing
07 May 2025
Lead MP
Luke Charters
York Outer
Lab
Responding Minister
Emma Reynolds
Tags
DefenceEconomyTaxationEmployment
Word Count: 4379
Other Contributors: 9
At a Glance
Luke Charters raised concerns about defence sector financing in Westminster Hall. A government minister responded.
Key Requests to Government:
Calls for the establishment of a multilateral defence development bank to fortify Britain's collective security and bolster its sovereign defence industries by fixing financing issues at home.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
The UK defence sector faces significant hurdles in accessing finance, bank accounts and insurance. British SMEs struggle with cash flow constraints due to delayed payments from prime contractors, leading some companies to consider moving abroad.
Chris McDonald
Lab
Stockton North
Suggests that a multilateral commercial bank would provide small businesses in Teesside with opportunities for market growth in the defence sector.
Emma Reynolds
Lab
Keighley
Clarified that there is no contradiction between ESG considerations and investment in defence, highlighting the importance of leveraging pension funds for returns from defence companies.
Gavin Robinson
DUP
Belfast East
Proposed the creation of a multilateral bank to support private finance and investment in defence. Highlighted divestment from UK defence by large-scale pension funds.
Jim Shannon
DUP
Strangford
Raises concern about the pension fund trustees' decision not to invest MPs’ contributions in the defence industry and advocates for ethical investment.
Mike Martin
LD
Tunbridge Wells
Asked if there is clarity about what the Government want regarding sectors like space, where the UK has underperformed compared to its potential.
Steve Barclay
Con
North East Cambridgeshire
Suggested looking at the British Business Bank for sector-agnostic support and asked why Ministers are not willing to give a steer to it in line with the ideas discussed.
Wolverhampton North East
Supports clarifying ESG rules to better back defence investment, citing Collins Aerospace's role in creating skilled jobs and apprenticeships.
Slough
Welcomes the proposal for a multilateral defence development bank, stressing the need to avoid complacency in light of Europe's current security challenges.
Tulip Siddiq
Lab
Hampstead and Highgate
Agreed with the idea of greater co-operation in defence procurement and financing with the EU, highlighting the importance for UK companies to have access to EU finance such as the Horizon scheme.
Government Response
Emma Reynolds
The Economic Secretary to the Treasury
Government Response
Acknowledged the challenges faced by the defence sector and highlighted recent government initiatives such as reaching 2.5% of GDP in defence spending by 2027, creating UK Defence Innovation, and considering proposals for a multilateral defence bank with allies.
▸
Assessment & feedback
Summary accuracy
About Westminster Hall Debates
Westminster Hall debates are a chance for MPs to raise important issues affecting their constituents and get a response from a government minister. Unlike Prime Minister's Questions, these debates are more in-depth and collaborative. The MP who secured the debate speaks first, other MPs can contribute, and a minister responds with the government's position.