Published by Global Banking & Finance Review®
Posted on March 14, 2025
1 min readLast updated: January 24, 2026
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The UK boosts its defence export lending by £2 billion to support missile and aircraft sales, aiming to strengthen its defence industry and create jobs.
LONDON (Reuters) - Britain said on Friday it would increase the overall amount it lends other countries to buy from British defence firms, in an effort to boost exports of missiles and aircraft and bolster its defence industry.
The government will increase its credit agency UK Export Finance's (UKEF) direct lending capacity for defence by 2 billion pounds ($2.6 billion) to 10 billion, the finance ministry said.
The boost comes weeks after Britain pledged to increase defence spending to 2.5% of GDP by 2027, saying it was necessary in light of global instability and the war in Ukraine.
"The world is changing, and we must bring about a new era of security and renewal that protects working people and keeps our country safe," finance minister Rachel Reeves said.
"This increase to UKEF's lending capability is our Industrial Strategy in action, bolstering our defence industry and supply chains, creating jobs and driving growth across the UK."
Reeves will announce the increase later on Friday during a visit to a defence company in Scotland.
($1 = 0.7729 pounds)
(Reporting by Sachin Ravikumar; Editing by Sandra Maler)
The main topic is the UK's increase in lending capacity for defence exports by £2 billion to support its defence industry.
The UK aims to boost exports of missiles and aircraft, bolster its defence industry, and create jobs.
The new lending capacity for UK defence exports is increased to £10 billion.
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