UK weighs financing options for higher defence spending

Ministers are considering ways to fund planned increases in defence spending, including private-sector financing and a possible multilateral lender. The government has set targets for defence spending, with further funding details due at the Spending Review.

• The government has committed to defence spending of 3% of GDP by 2030, and the article reports a target of 3.5% by 2035.· 1 source
• Options under consideration include PFI-style arrangements, defence bonds, private-sector funding and an international defence bank.· 2 sources
• The government has left details of how it will fund the increase to the Spending Review, currently planned for next autumn.· 1 source