Government‑backed Financing Expands £20 Billion to Aid British Exporters
Government‑backed financing has received a boost as the UK government unveiled a multi-billion‑pound expansion to support exporters and small firms during a shifting global trade era.
The Treasury and the Department for Business and Trade confirmed that UK Export Finance (UKEF) will see its lending capacity rise by £20 billion, taking the total to £80 billion. Small to Medium businesses may now access individual loans of up to £2 million through the British Business Bank’s Growth Guarantee Scheme.
Key Investment Highlights
The enhanced package sets aside £10 billion specifically for firms heavily affected by recent U.S. tariffs, such as steel and aluminium producers. This targeted allocation provides an essential buffer for companies facing immediate trade challenges.
An independent report from UK Export Finance confirms that last year saw a record £14.5 billion in the financing, supporting 667 exporters, generating 70,000 jobs, and contributing around £5.4 billion to GDP.
Industrial Strategy & Sectoral Focus
Under the new industrial strategy, UKEF also gains £13 billion in direct lending powers, with at least £3 billion designated for defence exports. This is expected to help secure supply chains and support emerging sectors, including clean energy, advanced manufacturing, and life sciences.
Alongside financing reforms, the UK government has also suspended tariffs on 89 imported goods for two years. The goal here is to ease domestic production costs and alleviate inflationary pressures.
