UKEF launches £50bn defence export fund to back British defence industry
UK Export Finance (UKEF), the government’s export credit agency, can announce a new £50bn Defence Export Fund, this increases their total capacity to £130bn, with £50bn of new support on top of its existing £80bn limit, the largest expansion to UKEF’s financial support in its 100-year history. It will be used to support large-scale UK defence exports and strengthen Britain’s competitiveness in a rapidly growing global market.
This allocation will support British defence companies of all sizes, those that already export or are looking to expand internationally. This support will provide them with what they need to compete for major contracts on the world stage. While allowing the UK’s allies to benefit from a powerful package that combines our world-leading defence sector with a competitive, government-backed finance offering.
This support will come through UKEF guaranteeing bank loans for British defence exporters fulfilling contracts, or financing provided to other countries purchasing British defence products.
This builds on UKEF’s strong recent track record in defence, which has seen support for landmark export deals, including air defence systems to Poland and Ukraine, and submarine rescue vehicles to Indonesia, generating jobs and economic value right across the UK.
Defence transactions handled by UKEF have grown significantly, with £5bn-plus deals now commonplace and a total of £10bn supported in financial year 2024/25 alone. This trend is expected to continue, so this new allocation positions UKEF to meet that growing demand with even greater confidence and ambition.
Tim Reid, CEO of UKEF, said: “Security is a strategic priority for governments worldwide, and the UK’s defence sector offers pioneering capabilities that allies are actively seeking. With billions of pounds available in new export financing, we are strengthening the sector’s global competitiveness while backing skilled British jobs and supporting long‑term economic growth.”
UKEF is backing businesses and driving UK growth. By 2029, UKEF aims to support UK firms to win over £12.5bn of new export contracts through its world-leading export finance offer.