LONDON (Reuters) – Britain said on Friday it would increase the overall amount it lends other countries to buy from British defence firms, in an effort to boost exports of missiles and aircraft and bolster its defence industry.
The government will increase its credit agency UK Export Finance’s (UKEF) direct lending capacity for defence by 2 billion pounds ($2.6 billion) to 10 billion, the finance ministry said.
The boost comes weeks after Britain pledged to increase defence spending to 2.5% of GDP by 2027, saying it was necessary in light of global instability and the war in Ukraine.
“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,” finance minister Rachel Reeves said.
“This increase to UKEF’s lending capability is our Industrial Strategy in action, bolstering our defence industry and supply chains, creating jobs and driving growth across the UK.”
Reeves will announce the increase later on Friday during a visit to a defence company in Scotland.
($1 = 0.7729 pounds)
(Reporting by Sachin Ravikumar; Editing by Sandra Maler)
