The British government announced Friday that it will expand export credit facilities for weapons manufacturers by £2 billion ($2.6 billion) to drive international sales.
The additional funding “will unlock billions of pounds for UK defence companies exporting abroad, fueling economic growth and creating jobs across the country,” the government stated.
With this increase, the UK Export Finance agency’s lending capacity for government clients of defence contractors rises from £8 billion to £10 billion.
Like other European nations, Britain is ramping up military production in response to an expansionist Russia, growing pressure on NATO members to increase defence spending, and uncertainty over President Donald Trump’s commitment to U.S. protection of Europe.
Ahead of a White House visit in February, Prime Minister Keir Starmer pledged to raise defence spending to 2.5% of GDP by 2027, with a long-term goal of reaching 3% in the next parliament.
“The world is changing, and we must usher in a new era of security and renewal that safeguards working people and protects our country,” Chancellor of the Exchequer Rachel Reeves stated.
