British businesses across the country have today been given
further stability and certainty with access to new support
through a multi-billion-pound increase in
government-backed financing as the world enters a new era of
global trade.
The new package will give UK Export Finance (UKEF) the power to
expand financing support for British businesses by £20 billion,
with small businesses also able to access loans of up to £2
million through the British Business Bank's Growth Guarantee
Scheme.
Thousands of companies are expected to benefit from the move,
including those directly affected by tariffs – with iconic
British brands like Rolls Royce through to local businesses like
Alicat Workboats previously benefitting from similar
programmes.
Today's boost reaffirms government's commitment to free and open
trade, and means an £ 80 billion boost for businesses, meaning
they can access government-backed finance and support to grow
their presence both domestically and overseas, create new jobs
and drive economic growth as part of the Plan for Change.
New measures come as prime minister goes further and faster to
boost growth, working in partnership with business to deliver it.
This week alone has seen swift and decisive action from the
government to protect UK businesses and workers by:
- Taking action to keep British Steel operating, saving
thousands of jobs
- Increasing flexibility on the zero-emission vehicle (ZEV)
mandate to help British carmakers
- Cutting the red tape that slows down clinical trials in the
life sciences sector
- Investing up to £600 million in a new Health Data Research
Service
- Backing a £30 million package to support the reopening of
Doncaster Sheffield Airport which is expected to support 5,000
jobs and boost the economy by £5 billion
Chancellor of the Exchequer, , said: “The world is
changing, which is why it is more important than ever to back our
world-leading businesses and support them to navigate the
challenges ahead. …
… adapt, and as part of our Plan for Change, this Government is
responding. These changes will help to boost growth support jobs
and supercharge thousands of businesses across all four corners
of the country.”
UKEF will also offer businesses partial loan guarantees through
more flexible uses of its Export Development Guarantee, helping
to mitigate the impact of new tariffs and associated economic
uncertainty. Of the £80 billion, up to £10 billion will be
allocated to ensure that businesses significantly impacted in the
short term by the current situation have access to the finance
they need to grow.
The British Business Bank will also expand its Growth Guarantee
Scheme by £500 million, which will provide vital finance for
smaller businesses as they look to invest and grow. This scheme
provides the lender with a 70% government-backed guarantee
against loans or other types of finance, enabling lenders to
support smaller businesses that would struggle to obtain
financing through traditional means – and has so far enabled more
than £2.1bn of lending.
This comes on top of £1bn of funding for British Business Bank
programmes for this financial year, confirmed at Autumn Budget
24. This includes additional support for smaller housebuilders
through the ENABLE Build programme, funding for Start Up Loans
and additional funding for three equity programmes supporting
innovative high growth businesses
This week, the Chancellor and Business and Trade Secretary also
took part in the 13th UK-India Economic and Financial Dialogue
(EFD) in order to strengthen ties between the two countries. In
addition to India, the UK is negotiating trade deals with
partners including the Gulf Cooperation Council, South Korea and
Switzerland, which will give businesses more opportunities than
ever before to expand into new
markets.
