Lib Dems Propose £20bn Defence Fund via War Bonds

by Ahmed Ibrahim

Liberal Democrats have their way. The party is calling for the government to issue “war bonds,” a scheme designed to raise up to £20 billion to strengthen the nation’s military capabilities.

What are war bonds? War bonds are debt securities sold to citizens to finance government spending during wartime. The government promises to repay the bondholder with interest after a specified period.

The proposal comes as geopolitical tensions rise,fuelled by Russia’s ongoing invasion of Ukraine and uncertainty surrounding the future of international alliances. The Labour government has already pledged to increase defense spending to 2.5% of national income by 2027, and 3.5% by 2035, but recent reports suggest this may not be enough.

Concerns about the UK’s defence readiness were recently voiced by the head of the Armed Forces, Sir richard Knighton, who stated earlier this month that the UK is “not as ready as we need to be for the kind of full-scale conflict we might face.”

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