£11 billion of export financing helps 85,000 jobs

• Up to 85,000 jobs and £6.4 billion to nationwide GDP supported by UKEF financing as a part of the federal government’s Growth Mission. 

• Today, plans shall be introduced to develop and replace UKEF’s position, additional supporting UK companies to compete globally and strengthening the UK’s financial safety. 

UK Export Finance (UKEF) supplied over £11 billion in loans, ensures and insurance coverage over the past yr and supported tens of 1000’s of jobs in key industrial sectors across the nation, in accordance with new figures printed at the moment.  

UKEF is the UK’s export credit score company and a authorities division, with £130 billion of capability to offer finance to help UK companies who need to export and develop abroad. It exists to make sure that no viable UK export fails for lack of finance or insurance coverage from the non-public market, whereas working at no internet price to the taxpayer.  

Over the final 12 months, UKEF helped British companies to safe contracts in 37 international locations in offers which can be supporting an estimated 85,000 jobs throughout the UK.  

Overall, UKEF’s financing within the yr backed the contribution of as much as £6.4 billion (GDP) to the economic system – reinforcing UKEF’s position as a key strategic associate to UK business, backing progress in key sectors aligned to the federal government’s Growth Mission and Industrial Strategy together with superior manufacturing, defence, sustainable vitality and significant minerals. 

Alongside this, formidable plans to deliver ahead laws to modernise UKEF’s mandate shall be set out in Parliament at the moment. It would give the UK’s export credit score company new powers to strengthen financial resilience, safe crucial provide chains and drive long-term progress throughout the nation. New legal guidelines will remodel UKEF right into a extra highly effective and versatile instrument for UK prosperity.

Business and Trade Secretary Peter Kyle, mentioned:

UK Export Finance’s excellent outcomes present how their work to bolster key sectors in our trendy Industrial Strategy is driving progress and supporting tens of 1000’s of jobs. 

From breweries to renewable vitality, we’ll maintain backing companies throughout the nation to be the perfect they are often and develop throughout the globe.

UK Export Finance CEO Tim Reid mentioned:

It’s been one other robust yr, and these outcomes present UKEF is delivering the place it issues most – backing British companies to win abroad, supporting tens of 1000’s of jobs and driving financial progress throughout the UK.  

From main exporters strengthening crucial industries to smaller corporations reaching new markets for the primary time, our finance helps flip world demand into actual alternative for communities throughout the nation.

UKEF’s Impact Report showcases continued progress in opposition to its 2024-2029 Business Plan goals, together with broadening entry to finance, significantly for small and medium-sized enterprises (SMEs). Sixty-six p.c (616) of all corporations straight supported by UKEF final yr have been smaller corporations.  

The division joined forces with two new non-bank lenders, White Oak and Nighthawk, throughout the monetary yr, and in current weeks, Mercore. By rising partnerships with differing kinds of lenders, SMEs have extra methods to entry finance. In January, UKEF mobilised an £11 billion joint lending dedication from the UK’s 5 main banks – one of many largest collective strikes by the sector in over a decade – considerably rising entry to finance for smaller exporters. 

Examples of SMEs supported all year long embody Wold Top Brewery in Yorkshire and renewable vitality firm Dulas. With backing from UKEF’s General Export Facility, family-run Wold Top Brewery secured a £200,000 commerce mortgage from Virgin Money to develop its exports to Europe and North America.   

Dulas – with websites in Mid Wales, Inverness and Bognor Regis – is delivering life-saving solar-powered vaccine refrigeration to among the world’s hardest-to-reach communities. Backed by UKEF and HSBC UK by way of successive finance packages, the corporate has been capable of maintain manufacturing, develop operations and ship crucial gear to immunisation programmes throughout greater than 80 international locations. 

UKEF delivered landmark help for main exporters and their provide chains too. Notably, the division supplied a £1.5 billion Export Development Guarantee to Jaguar Land Rover and that of Thales UK which is supplying very important defence gear to Ukraine.   

Director General of the Chartered Institute of Export & International Trade, Marco Forgione, mentioned:

These figures spotlight the very important position UK Export Finance performs in serving to companies commerce, develop and compete globally. As financial uncertainty and geopolitical challenges persist, entry to commerce finance stays one of many greatest limitations dealing with exporters. UKEF’s help helps extra companies overcome these limitations, seize worldwide alternatives and construct resilience for the long run. 

The £11.2 billion supplied in financing isn’t solely supporting exports; it’s serving to to create jobs, unlock funding and drive progress in communities throughout the UK. A powerful and agile UKEF shall be more and more vital in enabling companies of all sizes to achieve world markets.

Chair of the British Exporters Association (BExA), Geoff de Mowbray mentioned:

Exports create bridges between British firms and clients abroad. Those bridges strengthen our economic system at dwelling, help jobs, and assist construct prosperity within the markets we serve. 

In an more and more difficult world, worldwide commerce is turning into an important foreign money of diplomacy. UKEF’s Impact Report reveals why backing UK exporters issues – not solely to win enterprise, however to construct the long-term relationships, provide chains and resilience that help our future safety and progress.