Summary
The Liberal Democrats suggest the UK government introduce "war bonds" to raise £20 billion for defense. These bonds would allow the public to lend money to the government, paying interest similar to standard bonds. The funds would be dedicated to boosting the military and improving the Ministry of Defence's processes.
Key Facts
- The Liberal Democrats propose issuing "war bonds" to raise up to £20 billion for UK defense.
- War bonds would allow individuals to loan money to the government, with a 2-3 year term and interest similar to regular government bonds.
- The UK government is considering such financial instruments, but they must be cost-effective and align with fiscal goals.
- Recent events, such as Russia's actions in Ukraine and President Trump's NATO spending criticisms, have increased calls for defense spending.
- The current UK Labour government plans to increase defense spending to 2.5% of national income by 2027 and 3.5% by 2035.
- Reports indicate a potential £28 billion gap in the UK's defense budget for making the military "war ready."
- The proposed bonds would be similar to those used during the World Wars and aim to improve defense procurement processes.
