Former defence secretary pushed UK to join defence investment bank

Allies of Healey stated that Treasury officials attempted to halt negotiations over membership in the Defence, Security and Resilience Bank, an initiative led by Canada. The bank is intended to allow member countries to finance defence projects at lower costs.

" Treasury sources told the BBC that the chancellor had explored other multilateral funding arrangements, including talks with Poland about a separate mechanism. The bank is scheduled to launch officially at a Nato summit next month. Countries that join are expected to provide an initial investment of approximately £870m.

Resignation and spending gap Healey resigned as defence secretary on Wednesday, stating that the funding proposed for the government's Defence Investment Plan was "well short" of requirements. He indicated that Number 10 and the Treasury were prepared to allocate around £10bn in additional funds, roughly £18bn less than the amount reportedly sought by military chiefs.

Healey believed membership in the bank could help close the funding gap and support British defence companies. A group of defence-focused Labour MPs has been pressing ministers for months to consider the proposal. Officials have raised concerns that the bank's lending model could primarily benefit smaller economies with lower credit ratings.

The Treasury has been contacted for comment.