UK Chancellor John Healey negotiates membership in Canada-led defence financing bank
Chancellor John Healey is discussing with Canada the United Kingdom’s possible entry into a new defence, security and resilience bank, despite recent opposition from his predecessor Rachel Reeves.
John Healey, now chancellor, is in active talks with the Canadian government about the United Kingdom joining a newly proposed defence, security and resilience bank (DSRB) led by Canada. The DSRB is designed to provide low-cost financing for defence projects and could help the UK meet its 3% spending target without increasing the national debt. Healey previously advocated for UK observer status in similar Canadian defence bank discussions while serving as defence secretary, despite Treasury resistance.
He met finance minister François-Philippe Champagne twice at a G20 summit in North Carolina and will hold a further meeting in the UK, with both likely to appear at EU finance minister talks in Dublin. Canada has formally invited the UK to become a founding member together with eight other countries, among them Ukraine and Turkey. Rachel Reeves, Healey’s predecessor as chancellor, had rejected the DSRB in favour of the Multilateral Defence Mechanism, a separate lender the UK joined with a £600 million commitment.
Why it matters
The talks could shape how the UK finances future defence projects and meets its spending commitments.
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