Rachel Reeves, the United Kingdom’s chancellor of the exchequer, has unveiled a $2.6 billion boost to UK Export Finance’s Direct Lending program, which will support efforts to improve the nation’s defense exports.
According to a statement from His Majesty’s Treasury issued Friday, UKEF, with $13 billion in total funding, will help the country’s defense sector to be more competitive in the global market by marketing their solutions to allies.
The Direct Lending facility assists other governments with funding to procure goods and services from British companies. The fund extended $11.4 billion in loans, guarantees and insurance in 2023-2024, all aimed at enhancing the United Kingdom’s export numbers.
“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. This increase to UKEF’s lending capability is our Industrial Strategy in action,” the finance minister said.
She added that the additional funding for the UKEF facility, along with an increase of 2.5 percent of the gross domestic product for defense spending, will aid economic growth.
Earlier, British Prime Minister Kier Starmer introduced $2.1 billion in funding to ensure that Ukrain has its needed air defense missiles amid an ongoing war with Russia. Starmer’s commitment is expected to support 700 existing jobs at a Thales facility in Belfast, England.