LONDON (dpa-AFX) - British Chancellor of the Exchequer Rachel Reeves has announced 2 billion pounds ($2.58 billion) in support for the UK defense industry.
This fund will be used to finance UK defense companies that export military equipment.
On a visit to Scotland Friday, Rachel Reeves announced the massive increase to UK Export Finance's Direct Lending capacity for defense, which will unlock further opportunities for UK defense exports such as missiles, aircraft and armored vehicles overseas.
This will increase UKEF's lending capacity from 8 billion pounds ($10.34 billion) to 10 billion pounds (12.93 billion), and increase the competitiveness of UK defense industry, allowing UK exporters to grow their business through sales to allied nations.
UKEF's Direct Lending facility provides loans to other governments to buy goods and services from the UK.
This recently included an 8.8 billion pounds ($11.38 billion) guarantee for exports of air defense systems to Poland, support for the export of Typhoon aircraft to Qatar and support for the sale of ex-Royal Navy mine-hunting vessels to the Ukrainian Navy.
Chancellor Reeves said, 'The world is changing, and we must bring about a new era of security and renewal that protects working people and keeps our country safe. This increase to UKEF's lending capability is our Industrial Strategy in action, bolstering our defense industry and supply chains, creating jobs and driving growth across the UK.
'This is alongside an increase in our defense spending to 2.5 percent of GDP. We are strengthening our national defense, kick starting economic growth and delivering the stability we need to keep us safe.'
Defense Secretary, John Healey, said, 'British businesses will directly benefit from this increase in lending capacity alongside our historic decision to raise defense spending to 2.5 percent of GDP.'
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