UK lenders have announced a landmark £11 billion financing package designed to help British small and mid-sized businesses invest, grow and break into international markets.
The agreement, one of the largest collective banking commitments in more than a decade, was finalised at a Westminster roundtable chaired by Business Secretary Peter Kyle and UK Export Finance (UKEF) chief executive Tim Reid. Senior leaders from NatWest, HSBC UK, Barclays, Lloyds and Santander were in attendance.
Together, the five banks support around half of all UK businesses, making the move a significant vote of confidence in the country’s economic prospects.
Funding to fuel growth, jobs and exports
The £11 billion package will enable firms to invest in new equipment, hire staff and expand overseas, helping them capitalise on recently signed international trade agreements. The funding will come directly from the banks’ own balance sheets and is aimed squarely at small and medium-sized enterprises (SMEs) with global ambitions.
UK Export Finance, the government’s export credit agency, will guarantee up to 80% of eligible loans. Banks can automatically access the guarantee for working capital loans of up to £10 million, reducing risk and speeding up access to finance.
In addition to funding, businesses will receive hands-on guidance from bank relationship managers and UKEF’s regional Export Finance Managers, offering practical support on entering and navigating overseas markets.
Confidence in British enterprise
Business Secretary Peter Kyle said: “Strengthening Britain’s export potential relies on British businesses having the means, motive, and opportunity to succeed in new overseas markets.
The £11 billion these banks are making available will help meet the ambitions of smaller British businesses to fully export, expand and exploit these international market opportunities. It is positive proof of UK lenders’ confidence in the growth prospects of British enterprise”.
Chancellor of the Exchequer Rachel Reeves said: “Britain’s small businesses are ready to take on the world - and this £11 billion commitment gives them the firepower to do it.
We’re turning the power of the City into rocket fuel for UK exporters - backing ambitious firms in every part of the country to break into new markets, create good jobs and drive the next decade of British growth’.
Backing exporters at scale
UKEF Chief Executive Tim Reid said: “British exporters are at the heart of economic growth. This partnership unlocks billions of pounds to help UK businesses compete to win overseas contracts, showing how UKEF stands behind companies with global ambitions’.
The initiative forms part of the government’s wider growth strategy, which places small businesses at the centre of economic policy. Measures include tougher action on late payments, reduced red tape, expanded access to finance and the launch of a new Business Growth Service to bring government support into a single hub.
Ministers say the approach is designed to remove barriers that prevent firms from scaling up, boost exports in high-growth sectors and ensure economic benefits are felt across all regions of the UK.
As global competition intensifies, the £11 billion commitment signals a clear message from both government and lenders: British businesses are being backed to grow, export and compete on the world stage.
Stephanie Betant, Head of Global Trade Solutions for HSBC, said: “Amid geopolitical volatility, UK businesses continue to reap the benefits of global trade. Recent HSBC UK research found that 82% of businesses that trade overseas expect to grow over the next two years.
As a UK bank providing market leading international services, we help companies to invest, innovate, and export with confidence. We look forward to continuing this work, using our international connections to help leaders navigate complexities and unlock sustainable growth overseas”.
Robert Begbie, CEO, Commercial & Institutional Banking, NatWest Group said:
“As the UK’s biggest bank for business, NatWest is committed to supporting companies across the UK to innovate, expand into international markets and play a bigger role in driving longterm economic growth. By improving access to the right finance, we’re helping those businesses to grow with confidence”.
John Baldwin, CEO of Santander Corporate and Commercial Banking, said: “Our recent Trade Barometer showed UK businesses have an ever-growing interest in international expansion - despite the various geopolitical challenges they face. I’m proud to have worked with UKEF on the lending packages announced today, which will help power the overseas growth ambitions of businesses across the UK - and in turn boost the UK economy.
In addition to our partnership with UKEF, Santander helps businesses expand into new markets with our sector and country expertise, and our new digital Navigator Global platform”.
Matt Hammerstein, CEO of Barclays UK Corporate Bank, said: “Small and medium-sized businesses are the heart of the UK economy. We welcome the support this brings to UK exporters and those looking to export. By working closely with Government and with UKEF, we can help ambitious firms access the finance, expertise and international networks they need to export, scale and compete at global scale.
As a globally connected bank, Barclays stands ready to deploy capital for growth and provide the trade support to help reduce barriers to new markets, manage risk and unlock opportunity. We are excited to join the Government and our fellow lenders in supporting British businesses to invest, innovate and win new customers around the world”.