War bonds are not being considered by the government. The Defence Investment Plan, which places defence on a stronger, more sustainable footing, is being funded by reprioritising public spending, with £10.3 billion already identified and a further £4.7 billion to be confirmed at Budget 2026 in a fair and balanced way.

The Government is clear that our core gilt programme is the most stable and cost-effective way of raising finance to fund the day-to-day activities of the government, owing to the depth and liquidity of the market. Finance raised via gilts or National Savings and Investments products is generally not tied to specific areas of government spending, in order to offer the best value-for-money for taxpayers. Issuing bonds aimed at specific areas of spending risks fragmenting the gilt market, which would not be consistent with the government’s debt management objective of minimising the cost of long-term financing.

The Government remains open to the introduction of new debt instruments; however, HM Treasury and the UK Debt Management Office apply certain criteria when considering the launch of a new type of debt instrument. These include consistency with the Government’s debt management objective (to minimise the long-term cost of financing, taking into account risk); the impact on the general functioning of the gilt market; the expected size, sustainability, and nature of investor demand for the instrument; and an assessment of the cost and resource commitment required for its introduction into the market.

The Government would also need to be satisfied that any new instrument would meet value-for-money criteria, enjoy strong and sustained demand in the long term, and be consistent with wider fiscal objectives. We keep the introduction of new debt financing instruments under regular review.

The Government does not comment on financial market movements. Last year borrowing fell 1 percentage point (over £20 billion) to its lowest level in six years. The IMF have forecast that, between 2025-2030, the UK will be reducing the deficit by more than any other G7 or G20 country.

The Bank of England has operational independence from the government to carry out its statutory responsibilities for monetary policy and financial stability. Monetary policy, including the pace of quantitative easing and quantitative tightening, is the responsibility of the independent Monetary Policy Committee at the Bank of England. The Government does not comment on monetary policy decisions.

The Office for Budget Responsibility (OBR) forecasts debt interest costs as part of the fiscal forecasts in its Economic and Fiscal Outlook.

Since October 2022, HM Treasury has transferred £110.72bn to the Bank of England to cover losses arising from the indemnity of the Asset Purchase Facility, the vehicle used to implement quantitative easing. This covers losses incurred from net interest costs and the sale and redemption of bonds as the portfolio is unwound. Since 2013, the Bank of England has transferred £123.85bn to HM Treasury, giving HM Treasury a net position of £13.13bn to date.

Data on these cash transfers between HM Treasury and the Bank of England are made publicly available by the Office for National Statistics (ONS) in its monthly Public Sector Finances publication.

The Bank of England has operational independence from the government to carry out its statutory responsibilities for monetary policy and financial stability. Monetary policy, including the pace of quantitative easing and quantitative tightening, is the responsibility of the independent Monetary Policy Committee at the Bank of England. The Government does not comment on monetary policy decisions.

The Office for Budget Responsibility (OBR) forecasts debt interest costs as part of the fiscal forecasts in its Economic and Fiscal Outlook.

Since October 2022, HM Treasury has transferred £110.72bn to the Bank of England to cover losses arising from the indemnity of the Asset Purchase Facility, the vehicle used to implement quantitative easing. This covers losses incurred from net interest costs and the sale and redemption of bonds as the portfolio is unwound. Since 2013, the Bank of England has transferred £123.85bn to HM Treasury, giving HM Treasury a net position of £13.13bn to date.

Data on these cash transfers between HM Treasury and the Bank of England are made publicly available by the Office for National Statistics (ONS) in its monthly Public Sector Finances publication.

The UK is the leading Western centre for Islamic finance. The UK's two sovereign sukuk issuances successfully supported the development of the UK Islamic finance market and reinforced the UK's position as a leading Western hub for Islamic finance. The second sovereign sukuk matured in July 2026, and the Government did not issue a further sovereign sukuk.

The Government keeps the case for further issuances under review. The Government continues to engage with industry and international partners to promote the UK’s expertise in Islamic finance and to explore opportunities for the sector, including links between Islamic finance and sustainable finance.

Defined benefit (DB) pension schemes provide a predetermined level of pension and/or other benefits. Employers are responsible for funding the pensions and other benefits promised by their DB schemes and, although contributions are paid into the scheme and the scheme funds are invested, the level of pension and other benefits due does not depend on the performance of those investments.

The Department did not issue any guidance to pension schemes in relation to gilt market movements in September 2022. Guidance is regularly issued by the Pensions Regulator on topics, including detailed guidance on Liability-Driven Investment published on 24 April 2023.

Rising gilt yields have contributed to a funding surplus across much of the DB landscape, with the Pensions Regulator’s Annual Funding Statement indicating that around 90% of schemes are in surplus on a Technical Provisions basis.

The Defence Secretary meets his Cabinet colleagues frequently.

The Government keeps the introduction of new debt instruments under constant review but would need to be satisfied that any new instrument would meet value-for-money criteria, enjoy strong and sustained demand in the long term, and be consistent with wider fiscal objectives.

On 30 June, the Prime Minister announced £15bn of additional defence spending for the Defence Investment Plan. More information, including a ‘Funding Explainer’, is available online: https://www.gov.uk/government/publications/the-defence-investment-plan.

The Secretary of State regularly meets with Parliamentary colleagues to discuss defence issues. As he will recall from his time as a Minister we do not comment on individual engagements with individual MPs.

On 30 June, the Prime Minister announced £15bn of additional defence spending for the Defence Investment Plan. More information, including a ‘Funding Explainer’, is available online: https://www.gov.uk/government/publications/the-defence-investment-plan.

Forecasts are produced independently by the Office for Budget Responsibility (OBR), which incorporates market expectations for gilt yields alongside other determinants of debt interest, including inflation and the stock and composition of government debt.

The OBR’s most recent forecast, including for debt interest costs, are available in the March 2026 Economic and Fiscal Outlook linked here: https://obr.uk/efo/economic-and-fiscal-outlook-march-2026/

The government does not comment on specific financial market movements. Gilt yields are determined by a wide range of international and domestic factors.

The government does not comment on market movements. The reserves are managed to ensure the policy objectives set out in the Exchange Equalisation Account Act 1979 can be met at all times.