Committee publication · Correspondence · 7 July 2026
Letter from UK Export Finance relating to the Defence Export Fund, 30 June 2026
Summary
UK Export Finance (UKEF) announces a new £50 billion Defence Export Fund to support large-scale UK defence exports and strengthen competitiveness in global markets. The fund operates within UKEF's statutory limit and targets British defence companies of all sizes, aiming to provide speed and certainty for exporters while enabling international allies to access UK defence capabilities with competitive financing.
Key findings
- UKEF has established a dedicated £50 billion Defence Export Fund to support UK defence exporters of all sizes, from major primes to supply chain businesses
- Defence transactions handled by UKEF have grown significantly, with around £10 billion of defence business supported in 2024/25 and £5 billion-plus deals increasingly common
- Recent UKEF-backed defence transactions include air defence systems for Poland and Ukraine and submarine rescue vehicles for Indonesia
- In 2024/25, UKEF provided £14.5 billion across loans, guarantees and insurance, supporting up to 70,000 jobs and contributing up to £5.4 billion to the UK economy
- Tim Reid offers to brief the committee at greater depth on the Defence Export Fund or other UKEF-related topics
Tone
FactualTopics
defence-exportsexport-financeinternational-tradeeconomic-growth
Key actors
Tim Reid, UK Export Finance (UKEF), Liam Byrne MP, Business and Trade Committee, UK defence companies, Poland, Ukraine, Indonesia
Notable line
“The fund will operate as dedicated capacity within UKEF's statutory limit and will support British defence companies of all sizes — from major primes to …”
Key Quotes
“(UKEF) has announced a new £50 billion Defence Export Fund to support large-scale UK defence exports and strengthen the United Kingdom's competitiveness in a rapidly growing global market.”
“It is intended to provide greater speed and certainty for UK defence exporters as well as ensuring that our international allies can benefit from a package that combines our world- leading defence sector with a competitive UKEF-backed finance offer.”
“Defence transactions handled by UKEF have grown significantly in recent years, with £5 billion-plus deals now increasingly common and around £10 billion of defence business supported in 2024/25.”
Source · parliament.uk record ↗