The UK government has expanded its financial support for exporters, particularly those impacted by US tariffs. This new initiative increases the lending capacity of UK Export Finance (UKEF) by £20 billion ($26 billion), helping businesses navigate the challenges posed by tariffs, economic disruptions, and providing vital UK Export Support.
Increased Lending Capacity for Exporters
The government’s decision raises UKEF’s total lending capacity to £80 billion. Of this, £10 billion will be set aside to support businesses most affected by tariffs. This measure aims to help businesses maintain competitiveness during volatile periods.
Small businesses will also benefit from loans of up to £2 million through the British Business Bank’s Growth Guarantee Scheme. This initiative is expected to assist thousands of companies, including major exporters like Rolls Royce, which have been directly impacted by tariffs.
Support for Small Businesses and Key Sectors
The UK government’s expanded support is designed to aid exporters and small businesses seeking to grow globally. Jonathan Reynolds, Secretary of State for Business and Trade, emphasized that the government stands behind British businesses. “This package, supported by the British Business Bank and UKEF, will be a crucial boost for exporters,” he said.
Additionally, the UK Parliament recently passed an emergency bill granting the government control over British Steel, enabling continued production and management of key sectors such as steel manufacturing in Scunthorpe.
Conclusion
The UK’s increased financial support will help businesses manage the challenges brought on by tariffs. With support from UKEF, the British Business Bank, and UK Export Support, exporters like Rolls Royce will be better equipped to navigate uncertainties in global trade and continue their operations worldwide.
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