Barclays calls for targeted reforms to help UK SMEs unlock global export opportunities
Barclays has published new policy recommendations urging the UK government to take further action to support the nation’s exporters, particularly smaller businesses. The analysis draws on Barclays’ proprietary data covering current and potential future exporters, alongside the bank’s own in‑house expertise and long-standing experience supporting UK firms trading internationally.
This work comes at a time when UK export performance faces significant pressure. Between 2019 and 2025, UK goods exports fell by 12%, even as the world’s exports grew by more than 7% over the same period. The decline has been especially severe among smaller firms: the number of UK SME goods exporters dropped by 19% (23,000 fewer companies) between 2020 and 2023, leaving the UK a notable outlier compared with most OECD economies, where SME exporter participation has risen.
Against this backdrop, Barclays’ analysis highlights that strengthening the UK’s export finance framework could help unlock more growth. The bank notes that UK Export Finance (UKEF) – the UK’s export credit agency – has generated positive financial returns for government in recent years, returning £634m to the Exchequer over the past five financial years. Over the same period, premium income has averaged 208% above actual losses – above HM Treasury’s requirement for UKEF to maintain a 35% premium margin over expected losses. This indicates that there may be some scope for targeted policy enhancements that maintain prudence while enabling greater support for smaller exporters.
At the same time, Barclays’ survey data and insights underscore the value of UKEF to firms that use it. Key findings include:
- 92% of businesses that have used UKEF products are satisfied with their experience
- Awareness of UKEF is high, but utilisation remains lower among smaller businesses
- Greater flexibility in the maximum level of government-backed support could improve access to finance for smaller companies seeking to export
Drawing on these insights, Barclays makes a series of recommendations to the UK Treasury linked to expanding risk appetite to drive exports:
- Assess the appropriateness of the current premium‑to‑risk ratio (PRR) applied to UKEF, ensuring it remains aligned with both fiscal prudence and the needs of smaller exporters.
- Investigate mechanisms permissible within domestic legal frameworks and international standards that could allow guarantees above 80% for smaller exporters.
- This would enable UKEF to explore a portfolio‑based scheme designed specifically for smaller companies, enabling lenders to support a larger number of early‑stage or first‑time exporters while maintaining compliance with the 80% limit across the portfolio
- Permit UKEF to hedge its own currency exposure, reducing volatility‑driven losses and potentially freeing additional capacity for support.
The report also provides recommendations for UKEF’s product suite, such as introducing specific products for: suppliers of exporters; the eight Industrial Strategy sectors; and to help exporters mitigate foreign exchange risk.
James Binns, vice chair, Global Transaction Banking at Barclays, said: “Barclays is deeply committed to supporting UK businesses as they sell to markets around the world. As the UK looks to strengthen its export performance, now is the right moment to explore how government can make targeted, practical adjustments that would help UK companies – especially SMEs – access export opportunities, while continuing to safeguard taxpayers’ interests.
UKEF is one of the world’s most active export credit agencies and already plays a vital role in supporting UK exporters. These recommendations are about working with government to ensure that the tools available are used to their fullest potential, helping more small businesses enter global markets and enabling the UK to compete even more effectively internationally. Banks too have a role to play in getting this right, so we stand ready to do our part to help drive an export revival across the UK.”
Marcus Dolman, honorary vice president, British Exporters Association, said: “The UK has a long and successful history as an exporting nation. The recent trends of reduced trade growth compared to our peers is deeply concerning. BExA welcomes this timely report from Barclays setting out the important role UKEF has to play in reversing this trend. Although UKEF is already one of the world’s leading Export Credit Agencies, there is always room to make the best better.
The report’s conclusions largely echo BExA’s own findings through our UKEF benchmarking work and we look forward to collaborating with both UKEF and Barclays to deliver on these actions.”