New Defence Bonds Could Turn Southport Citizens into Patriotic Investors

Liberal Democrat Leader Ed Davey has called on the Government to issue defence bonds, open to the public, to raise billions in investment to modernise Britain’s armed forces.

Lib Dem council group leader on Sefton,  John Pugh, believes this could be a win win for patriotic Sandgrounders as the government puts limits on tax free saving accounts (ISAs). 

"In an area with Southport’s demographic profile this could be a safe haven for savings and a way for older people to help make the world itself a safer place,” he says.

Ed Davey said the country faced a “once-in-a-generation” security threat - with Donald Trump undermining NATO from within and Vladimir Putin continuing his brutal war in Ukraine. He called for a collective, patriotic effort to urgently boost defence spending and reduce the UK’s reliance on an increasingly erratic US President.

The Defence Bonds would echo the “war bonds” issued during the First and Second World Wars, giving members of the public an opportunity to invest directly in Britain’s defence as part of a collective national effort.

The Liberal Democrats said the bonds could raise up to £20 billion for capital spending on defence over the next two years, including new military equipment and other major assets, helping to rebuild the Armed Forces after years of being hollowed out by the Conservatives.

The bonds would be time-limited, capped and accompanied by the establishment of a new Defence Public Accounts Committee to ensure taxpayers’ money is spent efficiently. The UK’s 2021 ‘green gilts’ programme, issued to raise money for capital projects with an environmental benefit, raised £10 billion in its first sale.

The Liberal Democrats said the new bonds would help boost defence spending to 3% of GDP by 2030 at the latest. The party is calling on the government to urgently convene cross-party talks on how to increase defence spending to achieve this goal.