Former defence secretary John Healey had been secretly pushing for the UK to join an international defence bank, the Defence, Security and Resilience Bank (DSRB), BBC News has been told. The bank, spearheaded by Canada, aims to help member countries fund defence projects at low costs, but the Treasury reportedly rejected the proposal due to concerns over upfront costs and borrowing. According to sources, the chancellor was unwilling to pay the estimated £870m upfront investment required for the UK to join the DSRB. The move comes as the government faces criticism over defence spending, with former defence secretary Healey saying that the amount of money attached to the government's upcoming Defence Investment Plan fell 'well short' of what was needed. Healey had resigned as defence secretary on Wednesday, citing the funding gap as a major concern. The Canadian High Commissioner to the UK has held talks with Chancellor Rachel Reeves about the DSRB, but it remains unclear whether the proposal will be revived in the future.
UK Government Rejects Proposal for Defence Bank Amid Funding Concerns
UKPulse News DeskFormer defence secretary John Healey pushed for the UK to join an international defence bank, but the Treasury reportedly shut down negotiations. The move comes as the government faces criticism over defence spending.
- Former defence secretary John Healey wanted the UK to join the Defence, Security and Resilience Bank (DSRB)
- The Treasury allegedly rejected the proposal due to concerns over upfront costs and borrowing
- The DSRB aims to help member countries fund defence projects at low costs
Why this matters: This move has significant implications for the UK's defence spending and its ability to fund defence projects. The rejection of the DSRB proposal could lead to a shortage of funds for defence initiatives, affecting British businesses in the defence sector.
What this means for you: What this means for you: The rejection of the DSRB proposal could lead to a shortage of funds for defence initiatives, affecting British businesses in the defence sector and potentially impacting the security of the UK and its citizens.