Defence shares rise after Andy Burnham appoints John Healey as chancellor
Summary
Shares in UK defence companies rose after Andy Burnham appointed John Healey as chancellor, raising hopes for increased military spending. Healey, a former defence secretary, previously called for more defence investment, but experts say more funding is not guaranteed due to other government spending priorities.Key Facts
- Defence company shares like Babcock International, BAE Systems, Rolls-Royce, and QinetiQ increased after Healey’s appointment.
- John Healey was named chancellor by Prime Minister Andy Burnham.
- Healey previously resigned over disagreements about defence spending, arguing plans were insufficient.
- Investors hope Healey might increase military budgets, possibly using war bonds (special loans for defence).
- Market analyst Chris Beauchamp cautioned that Healey faces many budget demands, and extra defence funding is not certain.
- UK government bonds changed little after the appointment, and the British pound rose slightly against the dollar.
- The UK government borrowed less than expected in June, reducing pressure on financial markets.
- The government announced a plan to reduce household electricity bills by £45 annually starting in October.
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