Britain Bolsters Defence Exports with Major Lending Boost

Britain plans to boost its defence exports by increasing its credit agency UK Export Finance's lending capacity by 2 billion pounds. This decision aligns with the country's commitment to raise defence spending due to global instability and the conflict in Ukraine.

In a significant move, Britain announced on Friday an expansion in its financial support for global purchases from British defence firms. The government is set to increase UK Export Finance's (UKEF) lending capacity for defence exports by 2 billion pounds, bringing the total to 10 billion pounds.

This financial boost follows Britain's commitment to elevate its defence budget to 2.5% of GDP by 2027, a response to growing global instability and the ongoing conflict in Ukraine. Finance Minister Rachel Reeves emphasized the need for a new era of security, intending to safeguard the nation and protect its workforce.

Reeves highlighted that this increase in lending reflects the UK's Industrial Strategy, aimed at strengthening the defence sector, creating jobs, and stimulating growth across the country. She is scheduled to announce the initiative during her visit to a defence company in Scotland later on Friday.

(With inputs from agencies.)