Branch2 Intelligence
Treasury yet to do due diligence on finding extra money for UK’s Nato spend
Key takeaway
UK Treasury has not done due diligence on 3.5% GDP NATO pledge, deferring to next PM.
- Step 11st-order: UK Treasury defers due diligence on 3.5% GDP NATO pledge, creating fiscal uncertainty.
- Step 22nd-order: Gilt yields rise as markets price in higher future borrowing, increasing SME financing costs.
- Step 33rd-order: Defence contract awards delayed, reducing revenue visibility for defence SMEs and contractors.
Source: The Guardian Business
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