Barclays sets out recommendations to support UK SME exporters

Barclays has published a new report, “Driving UK exports through boosting the utilisation of UK Export Finance”, that contains policy recommendations intended to help improve UK export performance, with a focus on small and medium-sized enterprises (SMEs).

The report uses Barclays data, national trade data, and industry input to examine recent trends and the role of UK Export Finance (UKEF), the UK’s export credit agency. 

It shows that UK goods exports fell by 12% between 2019 and 2025, while global goods exports increased over the same period. The decline is stronger among SMEs, where the number of exporting firms dropped by 19% between 2020 and 2023. 

The report points to several challenges affecting exporters. These include complex rules, changes in exchange rates, logistics issues, and geopolitical risks. Access to finance is one of these challenges, especially for companies trying to enter new markets or grow their export activity. 

The report points to UKEF as an important tool in this ecosystem. The nation’s ECA provides guarantees, insurance, and financing to support exporters, with its total capacity having increased to £80 billion under the UK’s Trade Strategy, and it has returned £634 million to the government over the past five financial years. 

Survey data in the report shows that 92% of companies using UKEF are satisfied. However, smaller businesses use UKEF less often, even though many are aware of it.

The report suggests changes to improve how UKEF is used. These include reviewing how risk and pricing are set, and looking at ways to increase the level of government guarantees for smaller exporters. 

Other suggestions include allowing the ECA to manage currency risk, improving pricing transparency, and expanding its products. This could include more support for companies in export supply chains, key sectors, and tools to manage foreign exchange risk. 

James Binns, Vice Chair, Global Transaction Banking at Barclays, said: “Barclays is deeply committed to supporting UK businesses as they sell to markets around the world. As the UK looks to strengthen its export performance, now is the right moment to explore how government can make targeted, practical adjustments that would help UK companies – especially SMEs – access export opportunities, while continuing to safeguard taxpayers’ interests.”

Marcus Dolman, Honorary Vice President of the British Exporters Association (BExA), said: “The UK has a long and successful history as an exporting nation. The recent trends of reduced trade growth compared to our peers is deeply concerning. BExA welcomes this timely report from Barclays setting out the important role UKEF has to play in reversing this trend. Although UKEF is already one of the world’s leading Export Credit Agencies, there is always room to make the best better.”

The report concludes that targeted changes to existing policies could help increase the use of export finance and support more SMEs in international trade.