Your support helps us tell the story.
From reproductive rights to climate change and big tech, The Independent is on the ground as the story unfolds. Whether investigating the finances of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word,' which sheds light on American women fighting for reproductive rights, we know how important it is to analyze the facts from the messaging .
At such a critical time in American history, we need journalists on the ground. Your donation allows us to continue sending journalists to talk about both sides of the story.
Americans across the political spectrum trust The Independent. And unlike many other quality news outlets, we choose not to exclude Americans from our reporting and analysis with paywalls. We believe quality journalism should be available to all and paid for by those who can afford it.
Your support makes all the difference.
Ministers will urge banks and investors to ignore activists by increasing support for the UK defense sector following pressure over ethical concerns and operational issues.
Business Secretary Jonathan Reynolds will ask defense and finance chiefs to consider their environmental and social policies, without reducing support for the sector, at a meeting he will host with defense procurement minister Maria Eagle.
The meeting will discuss the challenges that environmental, social and governance (ESG) principles and changing perceptions of advocacy pose for growth and investment.
Ministers are increasingly concerned that the UK could be left behind if operations, research and development are not funded, after they identified defense as vital to the government's growth mission.
Reynolds said: “With our industrial strategy we are taking the pro-business, pro-growth approach the sector needs to drive investment in all parts of the country.
“Our world-leading defense sector is vital to the economy and supports thousands of high-skilled, well-paid jobs across the UK.”
The meeting comes after a series of anti-war protests on banks by activist organizations such as Palestine Action.
UK funds reduced their investment in defense companies, such as BAE Systems, by 9 percent from the beginning of 2022, according to London Stock Exchange data from last year.
Two separate studies also showed that defense companies found access to banking services a barrier to growth and had trouble opening an account or securing an investment due to ESG concerns.
“This government is committed to working together with the industry to address the challenges they face in attracting investment, and that is why roundtables like these are so important as we work to give investors the confidence they need in the years to come,” Mr. Reynolds added.
Santander told the Treasury Select Committee earlier this year that it had closed 280 public administration and defense company accounts, and Lloyds Bank closed 20 accounts in the same sector.
Kevin Craven, chief executive of ADS, said: “Our defense sector not only supports our national security and deterrence capability, but also provides employment to more than 164,000 people directly across the country.
“For our sector to continue to deliver the social value for which it is renowned – along with its role as a key driver of economic growth – the government's commitment to the industry is essential to strengthening the UK's position as a place for businesses to of defense to invest and grow, and from where to export.”
