Officials will lobby Burnham to revive ‘war bonds’ idea to pay for higher defence spending
Senior figures, including some in No 10, want the Treasury to be allowed to borrow more for military spending
TL;DR
- Officials are planning to lobby Andy Burnham to revive 'war bonds' for defense spending.
- The proposal suggests the Treasury borrow more, potentially issuing £20bn in tax-exempt bonds.
- The goal is to increase defense capabilities and encourage domestic investment.
- The Defence Investment Plan (Dip) has been a point of contention due to funding disputes.
- Concerns exist about depleted UK defense capabilities and the need to match Russia's military strength.
- Alternative proposals include supporting the Canadian-led Defence Security and Resilience Bank initiative.
- The Treasury has historically resisted such measures, citing borrowing impact.
- Burnham's team may reopen the Dip if funding issues are not resolved.