UK Export Finance drives £23 billion economic boost, supports 66,000 jobs annually, says Oxford Economics findings

A recent study by Oxford Economics shows that UK Export Finance (UKEF) has added £23 billion to the UK economy in the last five years. This support has maintained around 66,000 full-time equivalent jobs each year in key industrial sectors, highlighting the agency’s crucial role in strengthening British industry and trade.

According to the study, UKEF’s backing extends beyond direct exporters, supporting an estimated 115,000 UK businesses nationwide that form part of the export-linked supply chains. This shows how government-backed export finance drives economic growth by helping firms win contracts, increase their order books, and create jobs in communities nationwide.

Peter Kyle, Secretary of State for Business and Trade, quoted: “Exports fuel growth, and our partnership with UKEF has enabled thousands of companies to take British products and services to customers worldwide. But we must go further. I will use everything in my power to ensure businesses can scale here in the UK. This means expanding the firepower of UKEF to help many more homegrown success stories go global and boost our economy.”   

Tim Reid, CEO of UK Export Finance, also said: “These findings confirm that when UKEF supports a project, the benefits extend far beyond the exporters we work with directly.”

“As we gather today with hundreds of exporters, lenders and partners, this study shows why export growth matters for the whole economy. It isn’t just about the deals we sign; it’s just as much about the thousands of UK businesses in the supply chain that benefit when those deals go ahead,” he added.

UKEF’s sectoral contributions and strategic projects

Advanced manufacturing has been the largest beneficiary of UKEF’s support, accounting for 23% of its customer base over the last five years. Other manufacturing sectors and professional and business services also represent significant portions of UKEF’s portfolio, reflecting the agency’s alignment with the government’s Industrial Strategy priorities.

UKEF also provided a government-backed guarantee, enabling a £26.3 million loan to Ukraine’s Ministry of Finance to rebuild six strategically important bridges. This enabled UK supplier Pro Steel Engineering, based in Torfaen, Wales, to secure a £1.1 million contract supplying precision-engineered steel girders. 

Richard Selby, Managing Director of Pro Steel Engineering, said, “As a proud Torfaen-based company that has always been community and people-focused,  the team and I are extremely proud we’ll bring our skillset to help the rebuilding of Ukraine.”   

UKEF’s guarantee is set to unlock £1.5 billion in commercial financing for Jaguar Land Rover’s UK supply chain. This protects skilled jobs and strengthens British industrial capacity during tough economic conditions.

Expanding global market access and supporting SMEs

Recent diplomatic efforts have further expanded export opportunities. A visit by the Business Secretary and Prime Minister to China secured £2.2 billion in export deals and £2.3 billion in market access wins, alongside tariff reductions on Scotch whisky. 

These developments complement UKEF’s mission to open new markets and strengthen trade relationships, supporting British businesses to export, invest, and create jobs.

UKEF supports small and medium-sized enterprises (SMEs), with 80% of its assistance going to businesses outside of London. This focus on regional support helps distribute export finance benefits and boosts economic growth throughout the UK.

The agency recently announced a landmark £11 billion lending package, guaranteeing up to 80% of eligible loans from five major banks. This initiative aims to unlock private sector lending, enabling businesses of all sizes to invest and expand internationally.

By providing government-backed guarantees and insurance, UKEF enables access to crucial finance that helps British businesses compete internationally.