Sun, 25 Jan 2026

Sun, 25 Jan 2026 Davey says war bonds would help to speed up UK defence spending

Liberal Democrat leader Sir Ed Davey says the bonds would give the public an opportunity to "support patriotically our defence".

* Liberal Democrat leader Sir Ed Davey calls on government to sell war bonds to raise £20bn for military
* Bonds would be sold to public, with 2-3 year term and same interest rate as standard government bonds
* Government spokesperson says "new debt instruments" are kept under review but must represent value for money and align with wider fiscal objectives
* Davey says move is needed due to "Cold War type scenario" posed by Russia's use of drones, submarines, and shadow fleets
* Labour government has pledged to raise defence spending from 2.3% to 2.5% of national income by 2027, but reports suggest £28bn more may be needed for armed forces to become "war ready"
* Davey expresses concern about Nato alliance under US President Donald Trump and warns that UK may need to step up its defence spending
* Liberal Democrats propose ring-fencing money raised from bonds for defence and using investment to deliver growth, jobs, and higher revenues
* Scheme would require overhaul of Ministry of Defence procurement process to prevent wastefulness.
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