More defence spending? Fine, but Sunak needs to tell us where the money is coming from

Think-tank Royal United Services Institute has estimated that the 3 per cent defence target would be the equivalent to putting up income tax by 5p in the pound or raising VAT from 20 per cent to 25 per cent. Creating a special “reserve” (a Treasury device used for Iraq war and Afghanistan spending) won’t cut it. A new “war bond” could fit the bill, but that conflicts with Sunak’s aversion to debt.