The United Kingdom and Canada have agreed to develop a framework of cooperation between two planned defence financing institutions, according to a joint statement from HM Treasury and the Department of Finance Canada published on 25 October 2026.

The two governments said they had worked closely on how the Multilateral Defence Mechanism and the Defence, Security and Resilience Bank could best advance shared objectives. They mutually concluded that the best approach is to develop two distinct but complementary institutions that work in partnership.

As the institutions are operationalised, the statement says they will be designed to support each other on emerging industrial priorities, investment opportunities and strategic financing challenges. Together, the governments say, they will provide complementary tools to strengthen the defence industrial base and enhance collective defence readiness. The statement reiterates both countries' commitment to strengthening defence financing and improving spending efficiency to transform collective defence capabilities.