What is John Healey’s plan to raise defence spending and will it work?

Jump to contentThank you for registeringPlease refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged inAllNewsSportCultureLifestyleJohn Healey, the new chancellor, is reportedly reconsidering the UK joining a Canada-led Global Defence Bank to help finance the country's military and security spending. This initiative, spearheaded by Canadian prime minister Mark Carney, was previously rejected by Rachel Reeves, the former chancellor, due to concerns about breaching strict borrowing rules. Healey, who resigned as defence secretary over a £18bn shortfall in defence funding, is now believed to be reviving the proposal as chancellor to find alternative financing methods without raising income tax, VAT or national insurance. The plan has received conditional backing from two former Conservative defence secretaries, Sir Gavin Williamson and Sir Malcolm Rifkind, who see it as a potential way to secure more funds for the armed forces. While nine countries are already members, some economists, like Stephen Millard from NIESR, express scepticism, suggesting the UK might be a net contributor and unlikely to secure cheaper lending rates than existing gilts. In fullFormer defence secretaries back Healey plan to use war bonds to boost defence spendingMore bulletinsThank you for registeringPlease refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in

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