While debate rages over whether it is ‘ethical’ to invest in the defence sector, a venerable but little-known British bank stands ready to back the UK’s Armed Forces – as it has done since the Napoleonic wars.
Holt’s Military Banking, based in Farnborough, Hampshire, serves 33,000 military personnel, who may need a bank that can cater to their needs whether they are deployed overseas or at home.
The bank offers current and savings accounts to active and reserve members of the Armed Forces as well as veterans and their families.
An online regular saver account paying 6 per cent on balances up to £5,000 is available to customers of Holt’s parent firm NatWest too.
But a sergeant or above at Holt’s can enjoy free ‘premier banking’ that usually would be restricted to people on a salary of £100,000 a year, or with a £500,000 mortgage.
Despot: Napoleon in 1800 – the French leader threatened to invade Britain
Holt’s was founded in 1809 and expanded fast in the First World War, due to conscription. It was absorbed into the Royal Bank of Scotland, now NatWest, in 1985.
Separately, small and medium sized defence firms say they are being starved of finance with banks under pressure to change their approach.
Small defence firms often find it hard to gain access to loans or other banking services due to ESG – environmental, social and governance – strictures that frown on arms manufacturing.
Legitimate firms can also fall foul of rules aimed at money laundering, terrorism and rogue states.
This is causing blockages in the supply chain that will make it harder for the UK to build a stronger independent defence capability.
Finance and defence trade bodies met last week and are making joint recommendations to Business Minister Jonathan Reynolds.
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