UK Senior Aides Lobby Andy Burnham for Increased Defence Spending

The Lobbying Effort

Downing Street aides are planning to lobby Andy Burnham during access talks to revive the idea of 'war bonds' to pay for higher defence spending when he becomes prime minister.

The Defence Investment Plan

Senior No 10 figures want the Treasury to be allowed to borrow more for military spending and will try to convince Burnham to invest beyond the £13.5bn earmarked for the long-awaited Defence Investment Plan (Dip).

The Financial Implications

The government had come close to issuing war bonds to pay for higher defence spending before, with plans drawn up in No 10 and championed by Starmer's business adviser Varun Chandra. The government would have issued up to £20bn of bonds which would have been exempt from inheritance tax.

The Impact on Defence Strategy

Defence aides are also understood to have travelled to Makerfield during the byelection campaign to bring Burnham's team up to speed on the state of the UK's depleted defence capabilities. The head of the armed forces, air chief marshal Sir Richard Knighton, said that Britain needs to fund capable armed forces that can go 'toe to toe with Russia' and beyond.

The Future Outlook

Burnham's allies say that if the row over defence spending has been resolved by the time he takes over, then he would probably just move on. However, his team is reserving the right to reopen the Dip if that is not the case.