Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of whether (1) joining the Defence, Security and Resilience Bank, (2) joining the Security Action for Europe scheme, or (3) forming the Multilateral Defence Mechanism, would have an impact on (a) borrowing, (b) public sector debt, or (c) public sector debt net financial liabilities.

The MDM and DSRB are initiatives with a shared recognition that allies must work together to strengthen defence capability, industrial capacity and collective security. As is standard under public spending rules, paid-in capital for international institutions, such as Multilateral Defence Mechanism (MDM) and Defence, Security and Resilience Bank (DSRB) will score as financial transactions and should therefore have a neutral impact on UK public sector net financial liabilities (PSNFL). Any borrowing from them would be recognized as government expenditure.

At Ankara in July, UK Prime Minister Starmer and Prime Minister Carney of Canada issued a joint statement on defence financing. This noted that the efforts of the countries supporting the DSRB and the MDM have a high degree of complementarity,and, taken together can serve to improve defence investment throughout the supply chain.