- John Healey, the new chancellor, is reportedly reconsidering the UK joining a Canada-led Global Defence Bank to help finance the country's military and security spending.
- This initiative, spearheaded by Canadian prime minister Mark Carney, was previously rejected by Rachel Reeves, the former chancellor, due to concerns about breaching strict borrowing rules.
- Healey, who resigned as defence secretary over a £18bn shortfall in defence funding, is now believed to be reviving the proposal as chancellor to find alternative financing methods without raising income tax, VAT or national insurance.
- The plan has received conditional backing from two former Conservative defence secretaries, Sir Gavin Williamson and Sir Malcolm Rifkind, who see it as a potential way to secure more funds for the armed forces.
- While nine countries are already members, some economists, like Stephen Millard from NIESR, express scepticism, suggesting the UK might be a net contributor and unlikely to secure cheaper lending rates than existing gilts.
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