£11 Billion Export Financing Boosts 85,000 Jobs Across the UK

UK Export Finance (UKEF) has announced significant contributions to the UK economy, supporting up to 85,000 jobs and contributing £6.4 billion to national GDP as part of the government’s Growth Mission. In light of this success, plans to enhance UKEF’s role in aiding UK businesses on the global stage will be unveiled today, aiming to bolster the nation’s economic security.

Over the past year, UKEF has disbursed more than £11 billion in loans, guarantees, and insurance, benefiting tens of thousands of workers across vital industrial sectors throughout the UK. As the country’s export credit agency, UKEF operates under a government mandate with a substantial capacity of £130 billion to finance and support UK businesses eager to export and expand internationally. Its primary aim is to ensure that no viable UK export fails due to a lack of financing or insurance from the private sector, all while maintaining a zero net cost to the taxpayer.

UKEF’s Significant Achievements in Export Financing

In the previous 12 months, UKEF has facilitated British businesses in securing contracts across 37 countries, contributing to an estimated 85,000 jobs nationwide. The financing provided by UKEF has played a crucial role in supporting economic contributions amounting to £6.4 billion, reinforcing its position as a strategic partner for UK industries. The agency has been particularly instrumental in advancing sectors aligned with the government’s Industrial Strategy, including advanced manufacturing, defence, sustainable energy, and critical minerals.

In conjunction with these achievements, ambitious legislative plans to modernise UKEF’s mandate will be presented in Parliament today. This proposed legislation aims to grant the export credit agency enhanced powers to fortify economic resilience, secure essential supply chains, and stimulate long-term growth across the UK. The intended reforms are designed to transform UKEF into a more robust and adaptable tool for fostering national prosperity.

Government Officials Praise UKEF’s Impact

Peter Kyle, the Secretary of State for Business and Trade, remarked on UKEF’s impressive results, highlighting its role in bolstering key sectors of the modern Industrial Strategy. He stated, “UK Export Finance’s outstanding results show how their work to bolster key sectors in our modern Industrial Strategy is driving growth and supporting tens of thousands of jobs.” He further affirmed the government’s commitment to assisting businesses, from breweries to renewable energy firms, in their global growth ambitions.

Tim Reid, CEO of UKEF, echoed this sentiment, noting, “It’s been another strong year, and these results show UKEF is delivering where it matters most – backing British businesses to win overseas, supporting tens of thousands of jobs and driving economic growth across the UK.” He emphasised that UKEF’s financing aids both large exporters in strengthening critical industries and smaller enterprises venturing into new markets.

Access to Finance for Small and Medium Enterprises

UKEF’s Impact Report illustrates ongoing progress towards its business objectives for 2024-2029, particularly in enhancing access to finance for small and medium-sized enterprises (SMEs). Notably, 66 per cent of firms directly supported by UKEF last year were smaller businesses. Collaborations with new non-bank lenders, such as White Oak and Nighthawk, have broadened financing avenues for SMEs, while a recent joint lending commitment of £11 billion from the UK’s leading banks represents one of the largest collective efforts in over a decade to improve access to finance for smaller exporters.

Examples of SMEs benefitting from UKEF support include Wold Top Brewery in Yorkshire, which secured a £200,000 trade loan from Virgin Money to enhance its exports to Europe and North America, and Dulas, a renewable energy company providing solar-powered vaccine refrigeration to remote communities. Backed by UKEF and HSBC UK, Dulas has expanded its operations and delivered essential equipment to vaccination programmes across more than 80 countries.

Supporting Major Exporters and Their Supply Chains

UKEF has also provided significant support to major exporters and their supply chains, including a £1.5 billion Export Development Guarantee for Jaguar Land Rover and Thales UK, which supplies critical defence equipment to Ukraine. Marco Forgione, Director General of the Chartered Institute of Export & International Trade, remarked on UKEF’s essential role in helping businesses navigate economic uncertainties and geopolitical challenges by facilitating trade finance access for exporters.

He noted, “The £11.2 billion provided in financing not only supports exports; it helps create jobs, unlock investment, and drive growth in communities across the UK.” A robust and agile UKEF will be crucial in enabling businesses of all sizes to thrive in the global marketplace.

The Importance of Exports for Economic Resilience

Geoff de Mowbray, Chair of the British Exporters Association (BExA), highlighted the significance of exports in strengthening the UK economy and fostering long-term relationships in international markets. He stated, “Exports create bridges between British companies and customers overseas. Those bridges strengthen our economy at home, support jobs, and help build prosperity in the markets we serve.”

In a world of increasing economic challenges, UKEF’s Impact Report underscores the necessity of backing UK exporters, not only to secure business but also to establish the resilient supply chains vital for future economic security and growth.

Media Contact Information

For media enquiries, please contact: newsdesk@ukexportfinance.gov.uk