UK Export Finance expansion sparks cross-party debate in Parliament
Plans to expand UK Export Finance (UKEF) have been debated in Parliament. The proposed changes aim to update outdated legislation and increase the agency’s spending limit. Both major parties have weighed in on the bill, though their priorities differ.
The current UKEF legislation dates back to 1982 and 1991. Conservatives argue that modernising these laws will better support British exporters. They stress that UKEF should act as a backstop, not replace private financing.
Labour has welcomed the bill, seeing it as a chance to clarify and expand UKEF’s financial capacity. MP Ben Coleman also pointed to the agency’s role in boosting trade with Africa and rebuilding ties with the EU. He noted that over 16,000 small businesses have stopped trading with the EU since Brexit.
Recent UKEF-backed deals highlight its global reach. These include £165 million for Ethiopian Airlines, £102 million for Ireland’s Avolon, and £66 million for Emirates in Dubai. The agency has also supported defence exports, providing over £120 million to firms like BAE Systems and MBDA.
One of the latest projects involved MVV Energie AG. The German company recently completed financing for a thermal waste treatment plant in the UK, structured through KfW IPEX-Bank with SERV export risk insurance. UKEF played a key role in the deal.
UKEF has already supported thousands of UK companies and tens of thousands of jobs. The proposed changes would allow it to take on a larger role in trade finance. The bill now moves forward with cross-party backing but differing views on its future direction.
