The UK’s export credit agency, UK Export Finance (UKEF), has been given a £2 billion increase to its lending capacity to support defence exporters, bolster the supply chain and increase the UK’s competitiveness in the sector.
According to Chancellor Rachel Reeves this uplift in lending capacity from £8 billion to £10 billion will unlock further opportunities for UK defence exports such as missiles, aircraft and armoured vehicles overseas.
“The world is changing, and we must bring about a new era of security and renewal that protects working people and keeps our country safe,” she said. “This increase to UKEF’s lending capability is our Industrial Strategy in action, bolstering our defence industry and supply chains, creating jobs and driving growth across the UK.”
UKEF’s Direct Lending facility provides loans to other governments to buy goods and services from this country. In 2023/24, UKEF issued £8.8 billion worth of loans, guarantees and insurance to help expand UK exports, supporting 650 exporters of all sizes and 41,000 jobs across the UK.
The credit boost for defence exporters has been welcomed by the British Chambers of Commerce (BCC) with its Head of Trade Policy, William Bain, highlighting that, in 2023, defence export orders were worth £14.5 billion to the UK economy.
With defence spending set to increase both in the UK and in its key European partners, he noted that UK firms should be well placed to provide the hardware and services needed.
