Healey Pushed UK to Join £870 Million Defence Bank as £18 Billion Funding Gap Loomed
Updated
Updated · BBC.com · Jun 13
Healey Pushed UK to Join £870 Million Defence Bank as £18 Billion Funding Gap Loomed
3 articles · Updated · BBC.com · Jun 13
Summary
John Healey privately urged Britain to join the Defence, Security and Resilience Bank, arguing the planned Defence Investment Plan was about £18 billion short of what military chiefs wanted.
The Canada-backed bank, due to launch at next month's NATO summit, would require roughly £870 million upfront and is designed to provide low-cost lending and credit guarantees for defence projects.
Treasury allies of Healey said officials tried to shut down the talks, while Chancellor Rachel Reeves has signaled opposition to extra borrowing even as ministers explored other multinational funding options, including one with Poland.
Healey resigned on Wednesday after saying the government was offering only about £10 billion in extra defence money, exposing a wider fight inside Labour over how to finance a military buildup.