The government is preparing a major expansion of export support aimed at helping British companies win business in fast-growing overseas markets, with Brazil, Mexico and Morocco
among the countries targeted under a new £5 billion financing pilot.
The initiative, being introduced by UK Export Finance (UKEF), will offer selected overseas buyers more flexible access to commercial finance on the condition that they build stronger trading relationships with British suppliers.
The government hopes the scheme will give UK exporters a greater foothold in economies where British companies have traditionally had a smaller presence, while translating increased overseas sales into investment and employment at home.
Under the new Flexible Finance programme, UKEF will provide guarantees covering up to 80% of eligible commercial loans secured by selected international buyers. The pilot will have a total guarantee capacity of up to £5 billion.
The model represents a change from UKEF's traditional approach. Rather than financing being tied directly to individual British export contracts, the new facility will give participating overseas companies greater freedom over how they use the funds while encouraging them to source goods and services from UK businesses.
UKEF will also work with British companies to identify potential opportunities, including through supplier matchmaking and procurement support. The aim is to connect UK exporters with overseas buyers as financing becomes available.
The government says the programme is particularly designed to support trade with rapidly expanding economies where there is significant potential for British firms to increase their market share.
Chancellor John Healey is expected to present the initiative as part of the government's broader economic strategy when he addresses Labour's annual conference in Liverpool, arguing that stronger export performance can help stimulate industrial activity and employment across the UK.
“We’re backing British businesses to strike more deals overseas,” Healey said, highlighting countries where economic growth is strong but Britain's commercial presence remains relatively limited.
He said the initiative formed part of a wider effort to support British industry and innovation by opening new markets abroad and creating employment opportunities domestically.
Business Secretary Jonathan Reynolds said the government wanted British companies to compete more aggressively in international markets.
“We believe in Britain’s ability to sell to the world,” Reynolds said, arguing that the new finance mechanism would help create the conditions for UK businesses to expand into new markets.
The initiative is being presented as another component of the government's Industrial Strategy, with UKEF expanding its range of financial instruments to support sectors viewed as strategically important to the British economy.
It follows the creation of a new defence export facility announced in June, which increased UKEF's capacity to support defence exports by £50 billion.
The latest scheme reflects a broader shift in the government's approach to export finance: rather than simply supporting companies once an overseas contract has been secured, ministers want state-backed finance to help create demand for British goods and services in markets where UK businesses have room to expand.
For exporters, the potential benefit is access to overseas customers with stronger financing capacity. For the government, the longer-term objective is to turn increased international trade into higher production, investment and employment across British regions.
The success of the pilot will depend on whether participating overseas borrowers ultimately translate their access to UKEF-backed finance into substantial additional purchases from UK suppliers.
