"The idea has reportedly gained support from Defence Secretary John Healey and has been discussed in private ministerial meetings in recent weeks, as ministers search for ways to bridge a widening fiscal gap without breaking Labour's tax and borrowing pledges."
"Lord Hain has raised the proposal directly with both the Chancellor and the Prime Minister in recent weeks, urging ministers to consider dedicated borrowing mechanisms for defence spending."
"Sir Ed Davey has argued that the public could 'support our defence patriotically' through bonds with short-to-medium term maturities, suggesting such a scheme could raise as much as £20 billion."
Rachel Reeves is exploring the introduction of war bonds to finance Britain's increasing defense commitments, aiming to raise approximately £17.6 billion. These dedicated 'defense bonds' would allow individuals and institutions to invest in government-backed securities specifically for national security. The proposal has garnered support from key figures, including Defence Secretary John Healey, as ministers seek solutions to address a growing fiscal gap. The initiative is inspired by historical wartime financing strategies and aims to attract patriotic investments at potentially lower borrowing costs.
Read at London Business News | Londonlovesbusiness.com
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