Tory peer’s unregistered weapons interests prompt ‘accountability black hole’ warning

A Tory peer who holds shares in BAE Systems has prompted warnings of an “accountability black hole” for his repeated involvement in parliamentary defence matters without declaring an interest.

Lord Hodgson owns more than £28,000 worth of shares in the defence giant, Tortoise has found.

This is below the £100,000 level required for registration in the UK, although significantly above equivalent thresholds in other countries such as the US.

Campaigners say his case highlights the need to reform the UK’s lax reporting thresholds. Hodgson did not respond to requests for comment. 

Hodgson was an MP for three years in the 1970s but has spent his career mainly in finance. Since entering the Lords he has made defence an area of focus, joining a trio of all-party parliamentary groups (APPGs) including one on modern conflict, which regularly publishes reports on elements of the UK’s military capabilities.

The APPG’s website says: “Our work utilises existing parliamentary processes and our diverse network to advance research, discussion, and policy-making regarding emerging technology, covert operations, and other issues which are outpacing conventional oversight mechanisms in the context of modern conflict.”

Hodgson has also joined many debates on topics including the use of drones, as well as the National Security Bill, on which he attempted to bring forward an amendment aimed at giving investors in the arms sector greater clarity.

He has also submitted questions relevant to the operations of BAE Systems – including one on what plans of any are in place “to ensure that the UK is prepared for any impact resulting from a solar superstorm; and which department is responsible for those preparations”.

Steve Goodrich, head of research and investigations at Transparency International UK, said: “Knowing about peers’ significant investments is crucial to identifying potential conflicts between their public role and their private interests.

“There’s an accountability black hole when you have a threshold for registering shareholdings that’s too high, and some lords failing to declare when their interests are relevant to debates.”

Campaign groups including Unlock Democracy are pushing for the UK declaration threshold to be lowered from its current “laughably high” level to £10,000.