Britain announced on Friday that it will expand its lending capacity to support international purchases from British defence firms, aiming to boost exports of missiles, aircraft, and other military

equipment while strengthening the country's defence industry.

The UK government will raise the direct lending capacity of its export credit agency, UK Export Finance (UKEF), by £2 billion ($2.6 billion), increasing the total available for defence exports to £10 billion, the finance ministry stated.

This move follows Britain's recent commitment to raise defence spending to 2.5% of GDP by 2027, citing rising global instability and the ongoing war in Ukraine as key factors.

"The world is changing, and we must usher in a new era of security and renewal that safeguards working people and ensures our country's safety," said Finance Minister Rachel Reeves.

She emphasized that the increase in UKEF’s lending capability is a key part of the government’s Industrial Strategy, aimed at strengthening the defence sector, enhancing supply chains, creating jobs, and driving economic growth across the UK.

Reeves is set to formally announce the expansion during a visit to a defence company in Scotland later on Friday. Photo: Andrew Linnett/MOD, Wikimedia commons.