UKEF launches £50 billion defence export fund to back British defence industry

UKEF launches £50 billion defence export fund to back British defence industry
New export fund to enable UK defence companies of all sizes to compete for major international contracts.
- New £50 billion allocation of loans and guarantees will support British defence businesses to compete and grow in a rapidly expanding global market.
- UK allies will also benefit, gaining easier access to world-leading British defence capabilities and expertise.
UK Export Finance (UKEF), the government’s export credit agency, can announce a new £50 billion Defence Export Fund. This increases UKEF’s total capacity to £130 billion, with £50 billion of new support on top of its existing £80 billion 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 £5 billion-plus deals now commonplace and a total of £10 billion 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 £12.5 billion of new export contracts through its world-leading export finance offer.