UK in talks about joining global defence bank led by Canada

The United Kingdom is reportedly in talks to join a global investment bank, the Defence, Security and Resilience Bank (DSRB), overseen by Canada. Chancellor of the Exchequer John Healey is considering a bid to become a member of the bank, which aims to raise funds for defence spending by offering lower-cost loans to governments.

Supporters argue that the DSRB would enable nations to borrow at reduced rates and increase their military spending capabilities. However, no decision has been made by the UK government, as Treasury officials maintain that they are still evaluating the matter. Prime Minister Andy Burnham had planned to meet Canadian Prime Minister Mark Carney in the UK, but his visit was cancelled after the death of his father.

NATO Secretary General Mark Rutte is also set to visit the UK, where he is expected to emphasize the country's commitment to security and commend the nation's support for Ukraine. He will also assert that NATO will not be deterred by Russia's hostile actions, which have recently resulted in the loss of a drone over Lithuania and a confrontation with a Russian warship in the Baltic Sea.

The DSRB comprises Albania, Bulgaria, Belgium, Greece, Latvia, Luxembourg, Romania, Turkey, and Ukraine, and would require a £870 million investment from its members for the UK. This cost is spread over three years and is seen as a potential solution to help finance Healey's ambitious defence spending plans, which aim to increase the UK's defence expenditure to 3% of national income by 2030 and 3.5% by 2035.