A strong defence and a thriving economy are two sides of the same coin. The Armed Forces should utilise the City’s talent, writes Alastair King
The recent ceasefire in the Middle East is the most significant positive development in global affairs since I last addressed defence matters in these pages. Communities worldwide will be praying it holds for as long as needed to usher in a sustainable peace acceptable to all.
Alas, US President Trump’s discussions with President Putin in Alaska regarding a possible end to war in Ukraine have yet to bear fruit.
Closer to home, the UK’s Public Accounts Committee published a withering conclusion on efforts to increase military reserve and cadet forces, reporting that they lack both detail and funding. This matters hugely.
The retention and recruitment of reserves is vital for our national security, as is boosting our cadet forces. These essential endeavours received due recognition in the latest UK Strategic Defence Review, which outlined ambitious targets to increase reserve numbers by 20 per cent and cadets by 30 per cent in the coming years.
Since entering office, the Lady Mayoress – an active British Army reservist and I – have been forthright in supporting our Armed Forces. As Lord Mayor, I am honoured to serve as President of the City of London Reserve Forces’ and Cadets’ Association, which supports London’s reserve forces and cadets by raising awareness and developing relationships with communities, employers and veterans.
We have a strong network of veterans in the Square Mile, as part of the City of London Corporation’s City Belonging Project. A strong defence and a thriving City are two sides of the same coin. God forbid the UK should need to mobilise at speed. But if the worst did happen, business leaders need to know who among their staff are reservists, what skills they possess and how they can be reached.
Signing the Armed Forces Covenant is another crucial step for businesses looking to strengthen both their workforce and the wider UK economy. A growing number of firms in the City are already exhibiting best practice by recognising the benefits of hiring, promoting and supporting reservists and veterans.
Reservists are committed, focused and benefit from arguably the best leadership training anywhere in the world. I am pleased to report some success: the number of companies in the City who have signed the Armed Forces Covenant is increasing. These efforts need to be repeated UK-wide to make a meaningful difference.
Armed Forces and the City can benefit from each other
Perceptions about who can become a reservist must also shift. Digital wizards behind London’s fintech boom could make a valuable contribution to more modern forms of warfare. Indeed, last week’s National Cyber Security Centre annual report laid bare the scale of the national threat from malign actors. The City of London Corporation is actively involved in tackling this challenge head-on via the National Cyber Resilience Centre Group (NCRCG) – established with the City of London Police. Through nine regional Cyber Resilience Centres across England and Wales, smaller organisations are supported to strengthen defences, protect supply chains and build resilience.
Strengthening our Armed Forces is now also an economic opportunity. Defence investment is rising. In August 2025, the UK FTSE All Share Aerospace and Defence Index was around 70 per cent higher compared with this time last year. Behemoths including BAE Systems, Rolls-Royce, Babcock and Chemring have seen combined increase in market capitalisation of £53bn so far this year.
The government is working on defence finance and investment strategy, which will examine the entire spectrum of defence companies, from start-ups through to primes, and provide recommendations on removing barriers to make the sector more attractive for private investment. The City of London Corporation, along with the CBI, has been involved in efforts focused on ensuring greater access to finance for firms seeking to strengthen the nation’s defences. My Mayoralty has been particularly active in promoting the need to fund the UK defence supply chain among City businesses.
Economic security and national security are inseparable. Supporting reserve and cadet forces, bolstering UK cyber defences and liaising with government to provide access to finance for defence firms are just three ways the City of London Corporation makes an active contribution to the nation’s defence.
To echo the Strategic Defence Review, success will rely on a whole-of-society approach. I agree wholeheartedly with the Prime Minister’s assessment: “The fundamental truth is clear: a step-change in the threats we face demands a step-change in British defence to meet them.”
Alastair King is the Lord Mayor of the City of London