Healey wanted UK to join global defence bank, BBC told
Summary
Former UK Defence Secretary John Healey supported the UK joining a new international bank called the Defence, Security and Resilience Bank (DSRB), which helps countries fund defence projects at lower costs. There were disagreements within the government, especially with the Treasury, about the cost and funding methods, leading to Healey’s resignation over concerns about defence spending levels.Key Facts
- John Healey wanted the UK to join the Defence, Security and Resilience Bank (DSRB), an international investment bank led by Canada.
- The DSRB aims to help countries raise money for defence projects with lower interest costs.
- Joining the bank would require an upfront payment of about £870 million.
- The UK Treasury was hesitant to fund the UK’s membership in the DSRB.
- Healey resigned as defence secretary, saying planned defence spending was much less than what military leaders asked for.
- The Treasury also explored other options to fund defence, including a Multi-Lateral Defence Mechanism with Poland.
- Labour leader Sir Keir Starmer confirmed government departments would face cuts to help fund defence spending.
- Some believe joining the DSRB could reduce the funding gap and help British defence businesses.
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