The UK government is expanding its support for industry to adapt to changing global trade dynamics. The new package announced by Chancellor of the Exchequer Rachel Reeves envisages an increase of up to GBP 80 billion in government-backed financing. In this context, UK Export Finance (UKEF) will provide an additional GBP 20 billion in financing for exporters.
Under the announced plan, small businesses will also be able to access loans of up to GBP 2 million through the British Business Bank's Growth Assurance Program. The program offers a 70% government guarantee, targeting businesses that have struggled to find finance through traditional routes.
UKEF will also provide partial loan guarantees to businesses in response to new tariffs and market uncertainty. Of the total package GBP 10 billion is earmarked specifically for firms feeling the economic impact in the short term.
The government's action aims to support the growth, transformation and job creation of businesses in energy-intensive sectors such as steel and heavy industry. In addition, the decision to allow British Steel to continue its operations demonstrates a firm commitment to protecting the industry.
Rachel Reeves, Chancellor of the Exchequer, stated: “Today's decisions are supporting thousands of businesses across the UK. The public and private sectors must work together to accelerate growth.”
The support package is also part of the UK's post-EU strategy to strengthen trade ties with countries such as South Korea, Switzerland, the Gulf Cooperation Council and India.
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