LONDON (Reuters) - Britain's Labour Party leader Keir Starmer on Thursday proposed the launch of a 'recovery bond' to finance post-pandemic government spending that supports communities, jobs and businesses.
Starmer made the announcement in a speech setting out his vision for a Britain with greater state intervention to help the country rebound from the damage caused by COVID-19.
"If I were Prime Minister, I would introduce a new British Recovery Bond. This could raise billions to invest in local communities, jobs and businesses," Starmer said in a speech.
"It could help build the infrastructure of the future – investing in science, skills, technology and British manufacturing. It would also provide security for savers."
Labour said the bonds would be a way to tap into the country's estimated 250 billion pounds of household savings, and that the money should be allocated directly to the National Infrastructure Bank.
It said interest rates on the bonds should be set at similar levels to the rest of the market, and that their main draw to savers would be the opportunity to buy into the recovery. Bonds should be long-term, but give savers flexibility to withdraw their money earlier, the party said.