Baroness Kramer
Main Page: Baroness Kramer (Liberal Democrat - Life peer)Department Debates - View all Baroness Kramer's debates with the HM Treasury
(7 months ago)
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Baroness Vere of Norbiton (Con)
I am grateful to the noble and gallant Lord for his intervention, but the Government have committed to increase NATO-qualifying defence spending to 2.5% of GDP. That will make us the biggest defence power in Europe, and second only to the US in NATO. If all other NATO members were to increase their spending to the same levels, that would mean an additional £140 billion to be spent by allied nations.
Baroness Kramer (LD)
My Lords, the UK’s green gilts have been justified as necessary to promote London as a global centre for green finance, and they have been successful, but defence bonds would bring no such advantage and surely should be funded from core taxation. What would be the impact of defence gilts on general gilts issuances, on the national debt, on our annual interest payments and on funds for other public services?
Baroness Vere of Norbiton (Con)
Of course, I do not have the answer to those questions because the Government are not intending to issue defence bonds. However, the noble Baroness mentioned one of the rationales for issuing green gilts—ensuring that the City of London is a global financial centre—and she is absolutely right. Indeed, we are the No. 1 financial centre for green finance.