HEALEY PUSHED FOR UK TO JOIN GLOBAL DEFENCE BANK

Former Defence Secretary John Healey privately advocated for the UK to join the Defence, Security and Resilience Bank (DSRB), an international investment institution designed to fund defence projects at reduced costs. According to allies of Healey, the Treasury moved to halt negotiations regarding UK membership of the bank, which was spearheaded by Canada. In his resignation letter, Healey referenced "credible ways" to fund additional defence spending through multinational cooperation. Healey resigned on Wednesday, stating the government's upcoming Defence Investment Plan fell "well short" of required funding levels.

The DSRB is expected to launch officially at a NATO summit next month. UK membership would require an upfront investment of approximately £870m distributed across three years. Canadian Prime Minister Mark Carney has championed the initiative globally and reportedly seeks UK participation. Treasury sources stated Healey never submitted an official funding request relating to DSRB membership. A government spokesperson confirmed ministers were exploring a "multilateral defence mechanism" with Finland, the Netherlands and other partners to enhance value for money in defence procurement.

Sir Keir Starmer told the BBC on Friday that the government had made "hard-edged" choices on defence spending, requiring government departments to contribute cuts to fund defence initiatives. The extent of treasury resistance to the DSRB proposal suggests a broader disagreement within government regarding defence spending priorities and financing mechanisms.