Why Britain Said No to Canada’s Defence Bank and Chose Its Own Route

Canadian PM Mark Carney and British PM Andy Burnham.

Britain has decided against joining a global defence bank led by Canada. Instead, the UK will put its weight behind a separate British-led financing scheme meant to help close a multibillion-pound gap in the defence budget. The decision was announced on Sunday.

British Prime Minister Andy Burnham talked about joining the Ottawa-based project with Canadian Prime Minister Mark Carney last month, after UK officials began looking at the idea. The two sides had also considered merging the Canadian bank with Britain’s own scheme.

That merger will not happen. British officials say London and Ottawa could not agree on how a combined body would work, and they describe the decision as mutual. They also say the “historic relationship” with Canada is still strong. Even so, some observers may read the move as a snub to Carney, who has been trying to build closer ties with other middle powers.

The MDM is designed to boost procurement and stockpiling. Reeves argued that it would give taxpayers better value for money and let Britain borrow at a low rate to pay for defence.

The Canadian-led bank, officially called the Defence, Security and Resilience Bank, is…

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