Banking on global growth for UK as £11bn finance package unveiled

Senior executives from NatWest, HSBC UK, Barclays, Lloyds and Santander finalised an agreement with the Government today at a roundtable in Westminster convened by the Business Secretary Peter Kyle and the CEO of UKEF, Tim Reid.

The lending package is designed to help UK companies invest and expand abroad, to grow their businesses and the economy at a stroke.

The commitment, from the UK’s five leading banks, is one of the largest collective moves by the banking sector in over a decade, representing what the Government brands an historic show of confidence in the economy. Together, the banks serve half of all British businesses across all corners of the country.

Kyle said: “Strengthening Britain’s export potential relies on British businesses having the means, motive, and opportunity to succeed in new overseas markets.

“The £11 billion these banks are making available will help meet the ambitions of smaller British businesses to fully export, expand and exploit these international market opportunities. It is positive proof of UK lenders’ confidence in the growth prospects of British enterprise.”

Chancellor Rachel Reeves said: “Britain’s small businesses are ready to take on the world - and this £11 billion commitment gives them the firepower to do it.

“We’re turning the power of the City into rocket fuel for UK exporters - backing ambitious firms in every part of the country to break into new markets, create good jobs and drive the next decade of British growth.”

The lending will be drawn entirely from the banks’ own balance sheets and will give small and mid-sized enterprises a powerful route to access the finance and expert advice they need to compete on the world stage.

UK Export Finance (UKEF), the government's export credit agency, will guarantee up to 80 per cent of eligible loans issued by each bank. Banks can apply UKEF’s guarantee automatically for working capital loans of up to £10 million.

Alongside funding, businesses will also benefit from advisory support through banks' relationship managers and UKEF's regional Export Finance Managers, helping them navigate global markets and seize new opportunities.

Tim Reid said: “British exporters are at the heart of economic growth. This partnership unlocks billions of pounds to help UK businesses compete to win overseas contracts, showing how UKEF stands behind companies with global ambitions."

Matt Hammerstein, CEO of Barclays UK Corporate Bank, said: “Small and medium-sized businesses are the heart of the UK economy. We welcome the support this brings to UK exporters and those looking to export. By working closely with Government and with UKEF, we can help ambitious firms access the finance, expertise and international networks they need to export, scale and compete at global scale.

“As a globally connected bank, Barclays stands ready to deploy capital for growth and provide the trade support to help reduce barriers to new markets, manage risk and unlock opportunity. We are excited to join the Government and our fellow lenders in supporting British businesses to invest, innovate and win new customers around the world.”