- New £50 billion allocation of loans and guarantees will
support British defence businesses to compete and grow in a
rapidly expanding global market.
- UK allies will also benefit, gaining easier access to
world-leading British defence capabilities and expertise.
UK Export Finance (UKEF), the government's export credit agency,
can announce a new £50 billion Defence Export Fund. This
increases UKEF's total capacity to £130 billion, with £50 billion
of new support on top of its existing £80 billion limit, the
largest expansion to UKEF's financial support in its 100-year
history. It will be used to support large-scale UK defence
exports and strengthen Britain's competitiveness in a rapidly
growing global market.
This allocation will support British defence companies of all
sizes, those that already export or are looking to expand
internationally. This support will provide them
with what they need to compete for major contracts on
the world stage. While allowing the UK's allies
to benefit from a powerful package that combines our
world-leading defence sector with a competitive,
government-backed finance offering.
This support will come through UKEF guaranteeing bank loans for
British defence exporters fulfilling contracts, or financing
provided to other countries purchasing British defence products.
This builds on UKEF's strong recent track record in
defence, which has seen support for landmark export
deals, including air defence systems to Poland and Ukraine,
and submarine rescue vehicles to Indonesia, generating jobs
and economic value right across the UK.
Defence transactions handled by UKEF have grown significantly,
with £5 billion-plus deals now commonplace and a total of £10
billion supported in financial year 2024/25 alone. This
trend is expected to continue, so this new allocation positions
UKEF to meet that growing demand with even greater confidence and
ambition.
Tim Reid, CEO of UKEF, said:
Security is a strategic priority for governments worldwide, and
the UK's defence sector offers pioneering capabilities that
allies are actively seeking. With billions of pounds
available in new export financing, we are strengthening the
sector's global competitiveness while backing skilled British
jobs and supporting longterm economic growth.
UKEF is backing businesses and driving UK growth. By 2029, UKEF
aims to support UK firms to win over £12.5 billion of new export
contracts through its world-leading export finance offer.
