UK had been pushing to join €150bn Safe fund, a loan scheme that is part of bloc’s drive to rearm Europe

Keir Starmer’s attempt to reset relations with the EU have suffered a major blow, after negotiations for the UK to join the EU’s flagship €150bn (£131bn) defence fund collapsed.

The UK had been pushing to join the EU’s Security Action for Europe (Safe) fund, a low-interest loan scheme that is part of the EU’s drive to boost defence spending by €800bn and rearm the continent, in response to the growing threat from Russia and cooling relations between Donald Trump’s US and the EU.