Chancellor Rachel Reeves announced a £2 billion increase to UK Export Finance, to support defence exports, generate skilled employment and stimulate sector growth.
Aimed at boosting national security and strengthening the British military sector, the £2 billion increase announced by the UK Government to the lending capacity of UK Export Finance (UKEF) aims to stimulate economic development and assist high-value defence exports like missiles, planes, and armoured vehicles.
Strengthening UK Defence Industry
The higher UKEF loan capacity, from £8 billion to £10 billion, will enable UK defence exporters to boost their worldwide visibility. The move fits the Government’s Defence Industrial Strategy, which seeks to establish the UK as a top provider of cutting-edge military hardware to its allies.
Funded by changes to the foreign aid budget, the statement comes as the UK pledges to raise defence expenditures to 2.5% of GDP. Defence spending is expanding in line with the recent £1.6 billion commitment to provide Ukraine with thousands of air defence missiles, therefore supporting 700 jobs at Thales in Belfast.
