Healey wanted UK to join global defence bank, BBC told

Healey wanted UK to join global defence bank, BBC told

Former defence secretary John Healey pushed for UK participation in international defence funding initiative

Healey wanted UK to join global - John Healey, who previously held the role of defence secretary, was reportedly advocating for the UK to join a global defence investment bank. According to sources, the Treasury attempted to prevent ongoing talks about the UK’s involvement in the Defence, Security and Resilience Bank (DSRB), an initiative first proposed by Canada. Healey’s resignation letter highlighted the need for "credible ways" to finance increased defence spending, with "multi-national collaboration" cited as a key strategy.

The DSRB, designed to assist member nations in funding defence projects at reduced costs, is anticipated to be formally introduced at a NATO summit in the coming weeks. To join, countries would need to commit an initial investment of approximately £870 million. Canadian Prime Minister Mark Carney, who has been promoting the DSRB internationally, is believed to be eager for the UK to participate in the initiative.

"The government’s upcoming Defence Investment Plan fell well short of the required funds," Healey stated in his resignation letter.

Healey argued that joining the DSRB could help address the funding shortfall while also bolstering British businesses within the defence sector. A coalition of Labour MPs focused on defence matters has been urging ministers to explore the DSRB’s potential for months. One supporter suggested that the upfront cost might be covered through borrowed funds, a proposal that contrasts with Chancellor Rachel Reeves’ recent reluctance to increase national debt for defence purposes.

While the DSRB’s model aims to offer affordable financing, some within the UK government have raised concerns that it may favor smaller economies with lower credit ratings. The Treasury has yet to comment on the matter, but officials have reportedly discussed alternative funding approaches, such as engaging with Poland on a "Multi-Lateral Defence Mechanism." Sir Keir Starmer, the Labour leader, confirmed "hard-edged" decisions were made on defence spending, including budget cuts across government departments.

It is understood that the Treasury was prepared to allocate around £10 billion for the Defence Investment Plan, though this amount is said to be £18 billion less than the military chiefs’ demands. The plan remains unannounced, with ongoing debates about its effectiveness in meeting the UK’s defence needs. Carney’s efforts to secure the UK’s support have involved direct conversations with Gordon Brown, who advises the prime minister on financial matters.