Healey Considers Off-Budget Defence Funding as Google Shares Suffer Record Fall
Published
Reports in the British press this Friday suggest that Defence Secretary John Healey is considering ways to pay for military spending outside the normal government budget. These so-called off-the-books arrangements would allow the Ministry of Defence to raise money without it appearing in the main public accounts. The plans come at a time when the government is under pressure to increase spending on defence.
The reports do not give full details of how the funding would work. Off-budget financing is not new in the United Kingdom, but it is often criticised by economists and opposition politicians. Critics say it can make it harder for Parliament and the public to see how much the government is really spending and borrowing. Supporters argue that it can help the government invest in large projects, such as new equipment, without cutting other public services.
In a separate story, Google's parent company, Alphabet, has experienced a record fall in its share price. Its value dropped by around $500 billion in a single trading session. Investors appear to be worried about the costs and competition linked to artificial intelligence (AI), a technology that many large companies are now developing quickly. The fall shows how sensitive financial markets can be to news about the future of AI.
The two stories have little direct connection, but both highlight major questions about how money is spent and who pays for it. For UK readers, the defence plans may affect future taxes and public spending, while the Google decline shows the uncertainty in global technology markets. Further details are expected in the coming days as the government and the companies respond to the reports.
Sources: Citywire
More United Kingdom news
- Aldi puts 150 technology jobs at risk in latest outsourcing
- Amber cold health alerts issued across northern England
- Dutch Start-Up Optics11 Talks With Dozens of Navies About Underwater Listening Technology
- £800,000 Boost for Practical AI Training in Barnsley
- South Korean Water Company K-Water Discusses Tidal Power Cooperation with Liverpool
- South African Broadcaster Criticises Prime Minister Andy Burnham's Description of the UK
- Conservative MP Warns Andy Burnham Could Use 'Boiling Frog' Strategy on EU Rejoining
- UK Government Criticises Plaid Cymru Over Welsh Defence Sector