LONDON

The UK government on Friday announced a £2 billion ($2.6 billion) increase in UK Export Finance’s (UKEF) lending capacity, aimed at boosting the country's defense exports and securing vital jobs within the sector.

The increase, which raises UKEF’s Direct Lending facility from £8 billion to £10 billion, is expected to unlock new opportunities for UK defense exporters, including in the fields of missiles, aircraft, and armored vehicles.

This move is part of the UK government’s ongoing commitment to strengthening the nation’s defense sector, which plays a crucial role in national security and economic growth.

The increase in UKEF lending capacity will help UK defense companies grow their businesses and expand sales to international allies.

"The world is changing, and we must bring about a new era of security and renewal that protects working people and keeps our country safe," UK Treasury chief Rachel Reeves said in a statement.

The announcement builds on UKEF’s previous record of supporting the defense sector, including an £8.8 billion guarantee for air defense systems exports to Poland and support for the sale of Typhoon aircraft to Qatar.

Business Secretary Jonathan Reynolds emphasized the importance of a strong defense sector, saying: "A strong defense sector is vital for a Britain that’s both secure at home and strong abroad, ensuring a world where business can benefit from the economic security it brings."

Defense Secretary John Healey highlighted the importance of a robust UK defense industrial base and said: "A strong UK defense industrial base is essential for our national security, enabling us to rearm and innovate at a wartime pace. British businesses will directly benefit from this increase in lending capacity."