Telford MP joins calls to 'turn on the financial taps' for Ukraine war to support town's defence firms

Shaun Davies MP joined over a hundred Labour MP collegues in writing to banks and hedge fund managers today - calling for them to allow greater investment in defence by dropping their Environmental, Social and Governance (ESG) guidelines.

ESG is a set of standards which measure a business's impact on society, the environment, and how transparent and accountable it is.

The open letter, signed by 103 Labour MPs, calls on financial institutions to "do more" to enable the UK's defence sector to provide equipment to Ukraine, and "drive economic growth" at military factories across the country.

Telford-based Rheinmetall BAE Systems are currently building nearly 800 next-generation tanks and armoured vehicles for the UK Government which are set to be delivered by 2030 as part of a £5 billion project.

"Our financial institutions can do more to enable our UK Defence sector to provide the vital supplies [Ukrainian] President Zelenskyy needs," the letter says.

"For too long companies with the capability to develop military technology at speed have faced unnecessary barriers to doing business in the UK. With defence manufacturers in constituences nationwide, there is a clear potential to drive economic growth.

"For the United Kingdom to support both Ukraine in its hour of need and ensure defence of our own nation, we must rethink ESG mechnisms that often wrongly exclude all defence investment as 'unethical'. 

"This means turning on the financial taps to the firms that stand ready to deliver the best of British innovation, capability and skills."

Last week, the Government announced that defence spending would rise to 2.5% of GDP by April 2027, worth an additional £6bn per year, and the largest increase since the end of the cold war.

Chancellor Rachel Reeves added that UK companies and jobs would be prioritised under the government’s plans, with an aim to support “left behind” industrial towns and the economy at large.

“For decades, defence has been among the UK’s flagship industries, and here in Telford it’s a major source of employment and growth," said Shaun Davies MP.

"But investing in defence goes beyond jobs and growth - it’s vital for the defence of our nation, and for global peace and security. 

"I’ve been banging the drum for Telford’s defence and technology sectors, and it’s good to see the Government agree that defence innovation in places like Telford is a top priority.”