UK Defence Startups Are Being Denied Banking Services Under ESG Rules

UK banks are increasingly denying banking services to defence start-ups due to strict anti-money laundering checks and ESG (Environmental, Social, and Governance) screening, despite government encouragement for investment in the defence sector. Companies like Eyebrook Technologies, which have secured government support and significant funding, have been rejected by multiple banks including Barclays, citing concerns about the nature of defence business. Conservative politicians and financial analysts argue that excessive caution in the banking sector is stifling promising defence companies and risk driving them to relocate overseas.