The Digital Markets Bill aims to “stamp out unfair practices and promote competition in digital markets”.
His amendment defines discrimination in terms of breaches of an individual’s human rights. Banks would be required to provide customers with a written statement of their reasons within 30 days of their decision.
A customer would also have a right to damages for financial loss, emotional distress and physical inconvenience and discomfort if the bank acted in breach of its obligations.
The move came as banks faced an investigation by the Ministry of Defence (MoD) after closing the accounts of military contractors to the department.
The MoD launched the investigation after dozens of defence companies complained they were being denied banking services or charged higher rates because of the nature of their work.
Defence experts have blamed the growth of environmental, social and governance policies which encourage firms to invest “ethically”.
‘We must advocate for a strong defence industry’
James Cartlidge, the minister for defence procurement, is now in talks with ADS, the trade body representing 1,200 firms in the aerospace, security, defence and space sectors, to discuss how the Government can end the practice.
Ministers are concerned that it could jeopardise jobs and undermine the competitiveness of the sector which employs 417,000 people and provides equipment to the armed forces.
“Russia’s illegal invasion has highlighted why we must advocate for a strong defence industry, without which we could not have supplied Ukraine with the means to defend its freedom,” said Mr Cartlidge.
“Defence businesses large and small have told me that ESG rules have undermined them, from facing more expensive finance to being denied basic banking facilities.
“We are currently investigating the extent of this challenge – but I am clear that a strong defence industry supports well paid jobs around the UK, and enables our Armed Forces to keep us safe in dangerous times.”
Smaller defence businesses have been refused accounts, or told existing accounts will be closed and their balance refunded.
They have also been refused insurance, while larger firms struggle to raise capital.
Research from ADS found the proportion of investment funds that exclude the defence sector on ethical grounds has risen from 59 per cent in 2021 to 91 per cent this year.
