UK exporters boost economy as new study reveals major impact
A new study from Oxford Economics reveals the impact of government-backed exports on the UK economy.
Export deals backed by UK Export Finance (UKEF), the government’s export credit agency, have added £23bn to the UK economy over the last five years and supported an average of 66,000 full-time jobs each year in key industrial sectors.
The study shows that UKEF’s customers support an estimated 115,000 UK businesses across the country.
The findings coincide with the UK Trade and Export Finance Forum, the UK’s largest annual gathering of export specialists.
They demonstrate that when UKEF backs UK exports, the benefits cascade through UK supply chains, creating opportunities for firms to win contracts, grow their order books and create jobs in communities across the country.
Peter Kyle, Secretary of State for Business and Trade, said: “Exports fuel growth, and our partnership with UKEF has enabled thousands of companies to take British products and services to customers worldwide.”
“But we must go further. I will use everything in my power to ensure businesses can scale here in the UK. This means expanding the firepower of UKEF to help many more homegrown success stories go global and boost our economy.
Tim Reid, CEO of UK Export Finance, said: “These findings confirm that when UKEF supports a project, the benefits extend far beyond the exporters we work with directly.
“As we gather today with hundreds of exporters, lenders and partners, this study shows why export growth matters for the whole economy. It isn’t just about the deals we sign; it’s just as much about the thousands of UK businesses in the supply chain that benefit when those deals go ahead.”
UKEF’s report sets out how the UK government’s export credit agency is supporting businesses to secure overseas contracts, access vital finance and grow internationally. By offering government backed guarantees and insurance, UKEF helps unlock private sector lending that might otherwise be unavailable across key industries central to the government’s Industrial Strategy.
Advanced manufacturing received the highest level of direct support, accounting for 23% of UKEF’s customer base over the past five years.
Professional and Business Services was the third largest sector supported, representing 17% of customers over the same period, after advanced manufacturing and other manufacturing.
These findings demonstrate how export finance is helping to strengthen the sectors identified as vital to driving long-term economic growth across the UK.
UKEF provided a government-backed guarantee to the Ukrainian Ministry of Finance, unlocking a £26.3m loan to rebuild six strategically important bridges.
This financing enabled the main contractor to source from UK suppliers, including Pro Steel Engineering, a firm based in Torfaen, Wales, which secured a £1.1m contract to provide 200 tonnes of precision-engineered steel girders.
Richard Selby, managing director of Pro Steel Engineering, said: “As a proud Torfaen-based company that has always been community and people-focused, the team and I are extremely proud we’ll bring our skillset to help the rebuilding of Ukraine.”
Another recent example is its support for Jaguar Land Rover, where UKEF’s guarantee is expected to enable £1.5bn in commercial financing for the company’s UK supply chain. This demonstrates how export finance can safeguard skilled jobs and bolster British industry, even in challenging economic conditions.
Last week, the business secretary and prime minister visited China, securing £2.2bn in export deals, around £2.3bn in market access wins, and hundreds of millions in investments. The visit also saw China cut tariffs on Scotch whisky. This is part of our modern Industrial Strategy, which is focused on driving growth and creating opportunities for British businesses to thrive both at home and abroad. By opening new markets and strengthening trade relationships, we are backing businesses across the UK to export, invest and create jobs.
The Oxford Economics findings follow last week’s announcement of a landmark £11bn lending package, with UKEF guaranteeing up to 80% of eligible loans from five major banks.
Together, these developments show how export finance is opening doors for British businesses of all sizes, including SMEs, 80% of which UKEF supports are based outside of London, to invest and expand internationally, directly supporting the government’s mission to drive economic growth.