UK in talks about joining global defence bank led by Canada
Supporters of the scheme say the bank would enable governments to get cheaper loans to spend on defence projects.
By BBC News
The UK government is in discussions about joining a Canada-led global investment bank designed to raise more money for defence spending. Treasury officials have said no decision has been made.
The scheme is called the Defence, Security and Resilience Bank, and supporters say it would allow governments to borrow at lower cost for defence projects. BBC reporting says Canada has been leading efforts to establish it, with backing from several countries including Albania, Bulgaria, Belgium, Greece, Latvia, Luxembourg, Romania, Turkey and Ukraine.
The BBC also reported that membership for the UK and other G7 countries could require an upfront investment of about £870m spread over three years. A government spokesperson said the UK was working with international partners to scale defence industrial capacity and was in contact with Canadian allies about how the bank and another defence financing mechanism might work alongside each other.
Rachel Reeves had previously rejected the idea, according to the report.