UK Export Finance has launched a £50 billion Defence Export Fund to help British defence companies compete for major international contracts. Announced on 30 June 2026, the allocation is the largest expansion of UKEF’s financial capacity in its 100-year history.
What has been announced
The new allocation increases UKEF’s total capacity from £80 billion to £130 billion. It will support large-scale defence exports through government-backed finance, including guarantees for bank loans used by British exporters to fulfil contracts and finance for overseas countries purchasing UK defence products.
The government says businesses of all sizes may benefit, whether they already export or are seeking to expand internationally. UKEF supported £10 billion of defence transactions during the 2024/25 financial year, with individual deals worth more than £5 billion becoming increasingly common.
Commenting on the announcement, Tim Reid, Chief Executive Officer of UKEF, said:
‘Security is a strategic priority for governments worldwide, and the UK’s defence sector offers pioneering capabilities that allies are actively seeking.’
Why it matters to UK businesses
Access to export finance can determine whether a supplier has the working capital, bonding capacity and buyer finance needed to compete for a substantial overseas order. The additional allocation may support defence manufacturers, technology companies, engineering specialists and professional service providers across the wider supply chain.
The announcement concerns loans and guarantees rather than automatic grants. Each transaction will depend on the exporter, buyer, destination, contract structure, UKEF eligibility and the assessment of the participating lender or finance provider. Defence exports also remain subject to UK export control and licensing requirements.
Thames Valley defence capability
The Thames Valley has recognised strengths in cyber security, artificial intelligence, autonomous systems, space technologies, advanced engineering and high-tech manufacturing. The region also has a significant Ministry of Defence presence.
TVCC hosts the Thames Valley’s only business-led, curated Defence and Security Working Group. It brings together global corporates, SMEs, academic and educational institutions, industry leaders, government stakeholders and professional bodies.
The group aims to strengthen collaboration between primes, SMEs, academia and government, support organisations navigating policy and procurement, address skills needs and raise the region’s profile within the UK defence sector.
Participation is by invitation. Organisations with expertise in defence, security, cyber, aerospace, advanced engineering or related fields, and an operational link to the Thames Valley, may express an interest. This includes businesses that are not currently Chamber members.
What businesses should do
Businesses should identify realistic export opportunities and assess the finance required to bid, manufacture and deliver. They should confirm whether products, software or technology require an export licence, complete checks on destinations and end users, and ensure customs classifications and export records are accurate.
Firms should also consider how collaboration with regional primes, research organisations and specialist suppliers could strengthen their offer.
How TVCC can help
TVCC’s Defence and Security Working Group provides a route into regional collaboration, policy discussion, skills development and supply-chain connections. International trade consultancy and export documentation advisory services can also help businesses review export readiness and customs requirements.
For trade support, call 01753 870560 or email trade@tvchamber.co.uk.
Find out about the Defence and Security Working Group:
https://www.thamesvalleychamber.co.uk/defence-and-security-in-the-thames-valley/
Read the original announcement:
https://www.gov.uk/government/news/ukef-launches-50-billion-defence-export-fund-to-back-british-defence-industry
