Merryn Somerset Webb

So I think looking seriously at the triple lock,

looking seriously at the allocation of welfare spending is, I think, a sine qua non of us getting to a more defensible position on defence.

There's been talk about war bombs, defence bombs, launching a specific class of guilts for defence bombs.

Does that make any sense to you?

I mean, I look at that and I think, well, I tell you how that could really work.

And it's been suggested by a few people.

It would really work if you said, you know what, we're going to unlock these new bonds specifically for defence.

And we don't normally hypothecate in the UK, but, you know, why not at this point?

If you made those defence guilts free of inheritance tax.

So on this, two things.

One, I think that is an avenue, but I wouldn't pursue it as an alternative option.

to doing something on spending.

I think the market's tolerance for this, the credibility of the UK's fiscal position, first needs buttressing.

And buttressing means this government demonstrating it has the ability

to make politically difficult choices around spending?

I think without that, any further borrowing risks a raspberry from the markets.

Subject to that, do I think there's something that could be separately labelled and separately marketed?

I think probably yes.

Would that require a tax sweetener, either inheritance or maybe even a temporary extension of the ISA allowance?

Yes.