Healey wanted UK to join global defence bank, BBC told

Former Defence Secretary John Healey was privately pushing for the UK to join an international investment bank to raise more money for defence spending, BBC News has been told.

Allies of Healey claim the Treasury tried to shut down negotiations for the UK to join the Defence, Security and Resilience Bank (DSRB), an idea spearheaded by Canada.

In his resignation letter Healey said there were "credible ways" to fund extra defence spending, including "working multi-nationally".

A government spokesperson said they were exploring setting up a "multilateral defence mechanism" with Finland, the Netherlands and others "to improve value for money" in defence procurement will allies.

Meanwhile, Treasury sources claimed Healey never submitted an official request for funding related to the UK's membership of the DSRB.

The DSRB, which aims to help member countries fund defence projects at low costs, is expected to be officially launched at a Nato summit next month.

Membership of the bank for the UK and other G7 countries would come with an upfront investment cost of around £870m spread over three years.

Canadian prime minister Mark Carney, who has been pushing the idea on the global stage, is said to be keen for the UK to join the project.