Britain will not join the Canada-led defence bank, a source says

In a joint statement on Sunday, the two governments said they will develop a framework of co-operation between their two defence-funding initiatives.

One source says the Multilateral Defence Mechanism will focus on joint procurement, while the bank will back defence industries and supply chains.

The bank has had trouble winning support from larger European countries, and the two sides could not agree on where it would be based, according to a source.