UK Lenders step up with £11bn push to back British businesses
UK businesses to benefit from a landmark £11bn lending package to help them invest and expand abroad, to grow their businesses and the economy.
The lending commitment, from the UK’s five leading banks, is one of the largest collective moves by the banking sector in over a decade, representing an historic show of confidence in the UK economy.
Senior executives from NatWest, HSBC UK, Barclays, Lloyds and Santander finalised an agreement with the government on 26 January at a roundtable in Westminster convened by the business secretary and the CEO of UKEF Tim Reid.
Together, the banks serve half of all British businesses across all corners of the country.
Business secretary Peter Kyle said: “Strengthening Britain’s export potential relies on British businesses having the means, motive, and opportunity to succeed in new overseas markets.
“The £11bn these banks are making available will help meet the ambitions of smaller British businesses to fully export, expand and exploit these international market opportunities. It is positive proof of UK lenders’ confidence in the growth prospects of British enterprise.”
Chancellor of the exchequer Rachel Reeves said: “Britain’s small businesses are ready to take on the world – and this £11bn commitment gives them the firepower to do it.
“We’re turning the power of the City into rocket fuel for UK exporters – backing ambitious firms in every part of the country to break into new markets, create good jobs and drive the next decade of British growth.”
The lending will be drawn entirely from the banks’ own balance sheets and will give small and mid-sized enterprises a powerful route to access the finance and expert advice they need to compete on the world stage.
UK Export Finance (UKEF), the government’s export credit agency, will guarantee up to 80% of eligible loans issued by each bank. Banks can apply UKEF’s guarantee automatically for working capital loans of up to £10m.
Alongside funding, businesses will also benefit from advisory support through banks’ relationship managers and UKEF’s regional export finance managers, helping them navigate global markets and seize new opportunities.
UKEF chief executive Tim Reid said: “British exporters are at the heart of economic growth. This partnership unlocks billions of pounds to help UK businesses compete to win overseas contracts, showing how UKEF stands behind companies with global ambitions.”
Economic growth is the government’s number one mission, and backing British exporters is central to delivering it.
This partnership puts billions of pounds within reach of ambitious small businesses across the UK, reinforcing UKEF’s role as one of government’s most powerful levers for growth. It builds on the government’s wider commitment to backing small businesses as engines of the economy, including measures to tackle late payments, cut red tape and create the right conditions for investment.
Together, these form a joined-up approach to removing barriers and helping smaller firms scale up. Working in partnership with business is central to the government’s growth mission. Alongside the trade and modern Industrial Strategies, the government is building on the UK’s unique strengths in high-growth sectors, boosting exports abroad and ensuring the benefits of growth are felt across every part of the country.
Stephanie Betant, head of Global Trade Solutions for HSBC, said: “Amid geopolitical volatility, UK businesses continue to reap the benefits of global trade. Recent HSBC UK research found that 82% of businesses that trade overseas expect to grow over the next two years.
“As a UK bank providing market leading international services, we help companies to invest, innovate, and export with confidence. We look forward to continuing this work, using our international connections to help leaders navigate complexities and unlock sustainable growth overseas.”
Robert Begbie, CEO, Commercial & Institutional Banking, NatWest Group said: “As the UK’s biggest bank for business, NatWest is committed to supporting companies across the UK to innovate, expand into international markets and play a bigger role in driving long-term economic growth. By improving access to the right finance, we’re helping those businesses to grow with confidence.”
John Baldwin, CEO of Santander Corporate and Commercial Banking, said: “Our recent Trade Barometer showed UK businesses have an ever-growing interest in international expansion – despite the various geopolitical challenges they face. I’m proud to have worked with UKEF on the lending packages announced today, which will help power the overseas growth ambitions of businesses across the UK – and in turn boost the UK economy.
“In addition to our partnership with UKEF, Santander helps businesses expand into new markets with our sector and country expertise, and our new digital Navigator Global platform.”
Matt Hammerstein, CEO of Barclays UK Corporate Bank, said: “Small and medium-sized businesses are the heart of the UK economy. We welcome the support this brings to UK exporters and those looking to export. By working closely with government and with UKEF, we can help ambitious firms access the finance, expertise and international networks they need to export, scale and compete at global scale.
“As a globally connected bank, Barclays stands ready to deploy capital for growth and provide the trade support to help reduce barriers to new markets, manage risk and unlock opportunity. We are excited to join the government and our fellow lenders in supporting British businesses to invest, innovate and win new customers around the world.”
Paul Kempster, managing director, Commercial Banking Coverage, Lloyds Banking Group, said: “Working alongside UKEF demonstrates how banks and government can come together to unlock the full potential of UK businesses to help them compete and win on the global stage. This dedicated trade finance support will enable more firms to seek new export opportunities, scale internationally and drive investment and jobs back into the UK.”
Through its Plan for Small Business, the UK government is delivering the most comprehensive package of support for small and medium-sized businesses in a generation. This includes the most significant legislation in over 25 years to end the scourge of late payments, which closes 38 business daily, a massive £4bn finance boost to increase access to finance for entrepreneurs, and the launch of the new Business Growth Service, which is bringing together government support and advice in a single place for the first time.