Breaking news:UK banks announced £11 billion support for British businesses backed by UKEF

The UK’s five leading banks have collectively pledged £11 billion in lending packages to support business growth, with a particular focus on small and mid-sized enterprises (SMEs) today. The banks include NatWest, HSBC UK, Barclays, Lloyds and Santander. 

This commitment, announced at a roundtable convened by Business Secretary Peter Kyle and the CEO of UK Export Finance (UKEF), Tim Reid, is one of the most significant coordinated efforts by the banking sector in over a decade. The initiative showcases the banking sector’s confidence in the UK economy and its potential for expansion, particularly in international markets.

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.”

Scope and purpose of the lending package and the role of UKEF

The £11 billion lending commitment is intended to provide British businesses with the necessary capital to invest, hire, and expand into new overseas markets. The funds will be drawn entirely from the banks’ own balance sheets, offering SMEs a direct route to finance and expert advisory support. 

This financial backing is designed to enable firms to capitalise on major new trade deals and strengthen Britain’s export potential, thereby contributing to broader economic growth.

UK Export Finance will play a critical role in this by guaranteeing up to 80% of eligible loans issued by the participating banks. This guarantee applies automatically for working capital loans up to £10 million, reducing risk for lenders and facilitating access to finance for businesses. 

Alongside funding, businesses will benefit from advisory support provided by banks’ relationship managers and UKEF’s regional Export Finance Managers, who assist companies in navigating global markets and identifying new opportunities.

UKEF Chief Executive Tim Reid noted, “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.”  

Bank leadership statements on supporting UK businesses

Stephanie Betant, Head of Global Trade Solutions for HSBC, quoted, “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 long-term 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, stated, “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,” Baldwin added.

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.

He further added, “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.”

Paul Kempster, Managing Director, Commercial Banking Coverage, Lloyds Banking Group, said, “Working alongside UKEF demonstrates how banks and government can come together to unlock the full potential of UK businesses to help them compete and win on the global stage. This dedicated trade finance support will enable more firms to seek new export opportunities, scale internationally and drive investment and jobs back into the UK.”

Complementary government measures to support SMEs

This lending initiative complements the UK Government’s broader Plan for Small Business, which includes measures to tackle late payments, reduce regulatory burdens, and improve access to finance. 

The government has introduced legislation aimed at ending the scourge of late payments, which currently closes 38 businesses daily, a £4 billion finance boost to increase access to finance for entrepreneurs, and the launch of the new Business Growth Service. These efforts collectively aim to remove barriers and create an environment conducive to scaling up smaller firms.

The £11 billion lending package is a landmark collaboration between the UK Government and major banks to support British businesses in expanding domestically and internationally. 

By combining substantial financial resources with expert advisory services and government backing through UKEF guarantees, this initiative seeks to empower SMEs to seize new market opportunities, drive economic growth, and secure the UK’s position in global trade.