UK Export Finance (UKEF) has revealed it provided more than £11 billion in financial backing to British businesses over the last year, a move that is estimated to have supported 85,000 jobs across the country. The government department, which acts as the UK's export credit agency, facilitates global trade for UK companies through loans, guarantees, and insurance, aiming to ensure no viable export opportunity is lost due to a lack of finance. This significant investment also contributed an estimated £6.4 billion to the national Gross Domestic Product (GDP).
The financing from UKEF has enabled British businesses to secure contracts in 37 countries, reinforcing the UK's presence in international markets. These efforts align with the government's broader 'Growth Mission' and Industrial Strategy, focusing on key sectors such as advanced manufacturing, defence, sustainable energy, and critical minerals. UKEF operates with a substantial capacity of £130 billion to support UK businesses in their overseas growth ambitions, all while operating at no net cost to the taxpayer.
Looking ahead, ambitious plans are set to be announced in Parliament to introduce legislation that will modernise UKEF's mandate. These proposed new laws aim to grant the agency enhanced powers, allowing it to further strengthen economic resilience, secure critical supply chains, and drive long-term growth across the UK. Business and Trade Secretary Peter Kyle highlighted UKEF's role in bolstering key sectors and driving growth, while UK Export Finance CEO Tim Reid emphasised the agency's success in backing British businesses to win overseas contracts and support tens of thousands of jobs.
A significant focus for UKEF has been on supporting small and medium-sized enterprises (SMEs). Last year, 66% of all firms directly supported by UKEF were smaller businesses, demonstrating a commitment to broadening access to finance. Examples include Wold Top Brewery in Yorkshire, which secured a £200,000 trade loan to expand exports to Europe and North America, and Dulas, a renewable energy company delivering solar-powered vaccine refrigeration globally, which has sustained production and expanded operations with UKEF's backing.
To further aid SMEs, UKEF has expanded its partnerships, joining forces with new non-bank lenders like White Oak, Nighthawk, and Mercore. This strategy aims to provide more diverse avenues for smaller businesses to access crucial finance. Additionally, in a landmark move, UKEF mobilised an £11 billion joint lending commitment from the UK’s five leading banks in January, one of the largest collective efforts by the banking sector in over a decade, significantly boosting access to finance for smaller exporters.