Not quoted as saying that there should be some sort of budget or spending increase, which is the sort of evidence being presented in this report, but merely some historical context statement about how the armed forces had been 'right-sized for the era'; and with his political ties also mentioned.
That said, I wouldn't be surprised if AOAV had a blind spot with respect to The Guardian. However, that doesn't show one; and they did do lists of news media for several of the 19 (e.g. Richards) indicating that they aren't just picking 1 example publication for each person. Which is why I'm still inclined towards this telling us that there is a certain subset of U.K. publications in which this occurs.
If they hadn't mentioned Nation Cymru I'd be inclined towards this telling us that the report is highly London-centric and not reflective of 'U.K. media'. But they did.
I'm sorry, that's a real stretch. It's apparent to anyone reading what his comment implies.
And this is far from an isolated case, if you think the Guardian is an exception. We're all technical here, easy to use Google search and look up the names in the report and see how often the Guardian and the other "better" papers disclose the arms industry links. (Oh and the political party he's affiliated to isn't what's under discussion here.)