Government Unveils Multi-Billion-Pound Boost to Power Business Growth and Global Trade

British businesses have been handed a major boost as the UK Government today unveiled a significant expansion of its financial support to drive economic growth and international trade. Under the new measures, UK Export Finance (UKEF) will see its lending capacity increased by £20 billion, bringing the total support available to businesses up to £80 billion.

The announcement, part of the government’s broader Plan for Change, aims to provide greater financial stability and growth opportunities for businesses of all sizes. In particular, small firms will now have access to loans of up to £2 million through the British Business Bank’s expanded Growth Guarantee Scheme.

Thousands of companies are expected to benefit from this support, from global names like Rolls Royce to regional SMEs such as Alicat Workboats. These businesses will now be better positioned to manage the challenges posed by evolving global trade dynamics, including new tariffs and economic uncertainty.

Backing Growth, Securing Jobs

Chancellor of the Exchequer Rachel Reeves said the government is acting decisively to support the UK’s world-class business community:
“The world is changing, which is why it is more important than ever to back our world-leading businesses and support them to navigate the challenges ahead. Today’s announcement will do just that, with thousands of businesses right across the country set to benefit.”

Business and Trade Secretary Jonathan Reynolds reinforced the government’s commitment to industry:
“Our message to British business is clear – we’ve got your back. This package, backed by the British Business Bank and UKEF, will be a crucial shot in the arm to exporters and small firms looking to trade around the world.”

Flexible Finance, Strategic Support

UKEF will also expand its Export Development Guarantee, offering partial loan guarantees and greater flexibility to mitigate the impacts of tariffs and supply chain pressures. Of the new £80 billion support package, £10 billion will be earmarked for businesses experiencing short-term disruption.

The Growth Guarantee Scheme will be boosted by £500 million, offering government-backed 70% guarantees on loans to smaller businesses. To date, the scheme has enabled over £2.1 billion of lending to SMEs.

This move follows several major policy announcements made this week to support UK industry, including:

• A rescue plan to maintain operations at British Steel, securing thousands of jobs

• Greater flexibility for carmakers under the Zero-Emission Vehicle mandate

• Regulatory reform to speed up clinical trials in life sciences

• A £600 million investment in a new Health Data Research Service

• A £30 million package to help reopen Doncaster Sheffield Airport, expected to generate 5,000 jobs and £5 billion in economic impact

Looking Outward: Strengthening Trade Ties

The new support comes as the UK continues to pursue ambitious international trade agreements. This week, ministers participated in the 13th UK-India Economic and Financial Dialogue (EFD) to deepen economic ties with India. Similar negotiations are underway with the Gulf Cooperation Council, South Korea, and Switzerland, offering even more opportunities for British businesses to expand globally.

The announcement sends a strong signal to the global market that the UK is committed to free trade, economic resilience, and a dynamic business environment—one that is ready to lead in a rapidly changing world.

The UK Government’s Plan for Change: A New Era for Growth, Trade, and Innovation