John Healey in talks with Canada about UK joining new global defence bank
Exclusive: Britain is understood to have been formally invited to become founding member of multilateral lender John Healey is in talks with the Canadian government about joining a new global defence bank intended to help allies rearm to counter mounting security threats, just weeks after Rachel Reeves rejected the move. The chancellor is understood to be actively considering a bid to join the…
Britain is reportedly in discussions with Canada regarding the potential inclusion of the UK as a founding member of a new global defence bank. Chancellor John Healey is actively considering this bid, which could assist allies in rearming to counter increasing security threats. The proposed Canada-led defence, security, and resilience bank (DSRB) aims to fund defence projects at lower costs.
Healey, who previously advocated for UK observers at Canadian defence bank talks, is to meet with Canadian finance minister François-Philippe Champagne at a G20 summit in North Carolina. Discussions are expected to continue during EU finance minister talks in Dublin later in the week. Canada has formally extended an invitation to the UK to join the bank alongside eight other countries.
The DSRB could aid the UK's defence spending by offering financial leverage, using capital beyond already indebted nations. Former chancellor Rachel Reeves, however, had previously established a separate lender called the Multilateral Defence Mechanism (MDM) to address procurement costs and stockpiling. The UK has pledged an initial £600m to the MDM.
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