Rachel Reeves will unleash billions for the British defense industry, while offering more than £ 2 billion of frozen Russian assets to strengthen the army of Ukraine.
The Chancellor is preparing to broaden the scope of the £ 27.8 billion National Wealth Fund (NWF), which was previously devoted to infrastructure projects such as Green Energy, to now record defense issues.
The fund is intended to generate £ 3 in investments in the private sector for every £ 1 that IT invests, a movement that will offer the Defense industry of the VK more financial stability in the midst of the growing global safety problems.
The Chancellor Tonight has signed a bilateral loan agreement of £ 2.26 billion, which the first time that money is marked from frozen Russian assets will be used for military purposes.
This is on top of the United Kingdom in the annual deployment of £ 3 billion to support Ukraine.
On Thursday, Reeves address the European leaders to follow the leadership of Great Britain in stimulating the Ministry of Defense: 'The world has changed, and we have to keep track of it and we have to respond to that.
“The importance of harsh power, from securing our defense, is clearly more important today than it has long been.”
Reeves added: 'We all know that it must be done. None of the ministers with whom I spoke is under illusions about the importance of setting up. We all acknowledge that the world has changed and that our task is as financial ministers to ensure that money is available. '
Chancellor of the treasury Rachel Reeves signs the extraordinary income acceleration loans on the Ukrainian document while holding a video conference meeting with the Minister of Finance of Ukraine Sergii Marchenko
The Chancellor is preparing to broaden the scope of the £ 27.8 billion National Wealth Fund (NWF), which was previously devoted to infrastructure projects such as Green Energy, to record defense issues now
Its plans to expand the NWF's assignment are part of a long -term strategy to support the VK's defendant sector, which has been under -financed for years
Her plans to expand the NWF assignment are part of a long -term strategy to support the VK's defendant sector, which has been under -financed for years.
The war in Ukraine has the urgent need to supplement impoverished stocks and to supplement the military skills.
“We have already said that the NWF must support the priorities of the industrial strategy – areas such as advanced production in energy, technology and AI – but we think the NWF can do more to support security and defense,” Reeves told The Sunday Times.
“If we spend billions extra on defense every year, I want to see that they create good jobs, pay decent wages in the UK.”
Moreover, the Chancellor is expected to announce the release of £ 2.26 billion in frozen Russian assets to help Ukraine's army.
The UK has around £ 26 billion in frozen Russian central bank assets and extra assets such as Oligarchs houses, which yields around £ 18 billion.
The loan agreement with the Ukrainian finance minister Sergii Marchenko will be signed in Downing Street, with funds delivered within the following two weeks.
This is the first time that funds of frozen Russian assets have been assigned to military aid, after the long -term dedication of the UK to Ukraine.
“A safe Ukraine is a safe United Kingdom,” said Reeves. “This financing will strengthen the armed forces of Ukraine and will bring Ukraine in the strongest possible position at a critical moment in the war.”
Reeves repeated: “I am really clear that it is Russia that has to pay for the damage and the destruction it caused in Ukraine.”
The British Prime Minister, Sir Keir Starmer and Ukrainian president, Volodyymyr Zensky Shake Hands during a bilateral meeting on 10 Downing Street
British Prime Minister Keir Starmer meets Ukrainian President Volodymyr Zelenskiy in Downing Street in London
Reeves also discussed the British economic ties and responded to President Trump's recent comments about NATO financing: “President Trump's comments reflect the depth of the economic partnership between our two countries,” she said. “The British government will now build on that dialogue and continue to argue for a deeper trade between our economies.”
Despite these ambitious plans, Reeves faces challenges while preparing for her spring statement on March 26.
Economic growth cannot be met, inflation has risen to 3 percent and the rising bond returns have left the Chancellor with a limited tax space.
According to analysts, Reeves has a little less than £ 3 billion for errors and he has to levy taxes, reduce expenses or change its tax rules to stay within the budgetary limits of the government.
Sources, however, suggest that tax increases and rule changes are unlikely, with well -being, expansion of officials and NHS productivity as important areas for potential cuts.
'I don't have any [Office for Budget Responsibility] Prediction to tell me that we have to do more to increase productivity and reform our public services, “said Reeves.
“We have to do those things because we have to get a better price -quality ratio for taxpayers who pay a lot, and under the tories that are paid in more, but find out the public services.”
It is understanding that plans for £ 5 billion in welfare reductions are underway, with an urge to the sick in the long term to get back to work.
The pressure is increasing while Reeves navigates a complex economic landscape, while she continues her defense and support for Ukraine.
