UK lenders step up with £11 billion push to back British businesses

UK banks agree £11 billion lending packages to support small business growth, particularly for small and mid-sized enterprises.

• Money  will help firms invest, hire and expand into new international markets, taking advantage of major new trade deals 
• Agreement reached at a roundtable convened by Business Secretary Peter Kyle

UK businesses to benefit from a landmark £11 billion lending package to help them invest and expand abroad, to grow their businesses and the economy.  

The lending commitment, from the UK’s five leading banks, is one of the largest collective moves by the banking sector in over a decade, representing an historic show of confidence in the UK economy. 

Senior executives from NatWest, HSBC UK, Barclays, Lloyds and Santander finalised an agreement with the Government today (26 January) at a roundtable in Westminster convened by the Business Secretary and the CEO of UKEF Tim Reid. 

Together, the banks serve half of all British businesses across all corners of the country.  

Business Secretary Peter Kyle said:

“Strengthening Britain’s export potential relies on British businesses having the means, motive, and opportunity to succeed in new overseas markets.

“The £11 billion these banks are making available will help meet the ambitions of smaller British businesses to fully export, expand and exploit these international market opportunities. It is positive proof of UK lenders’ confidence in the growth prospects of British enterprise.”

Chancellor of the Exchequer Rachel Reeves said:

“Britain’s small businesses are ready to take on the world – and this £11 billion commitment gives them the firepower to do it.

“We’re turning the power of the City into rocket fuel for UK exporters – backing ambitious firms in every part of the country to break into new markets, create good jobs and drive the next decade of British growth.”

The lending will be drawn entirely from the banks’ own balance sheets and will give small and mid-sized enterprises a powerful route to access the finance and expert advice they need to compete on the world stage.

UK Export Finance (UKEF), the government’s export credit agency, will guarantee up to 80% of eligible loans issued by each bank. Banks can apply UKEF’s guarantee automatically for working capital loans of up to £10 million.

Alongside funding, businesses will also benefit from advisory support through banks’ relationship managers and UKEF’s regional Export Finance Managers, helping them navigate global markets and seize new opportunities. 

UKEF Chief Executive Tim Reid said:

“British exporters are at the heart of economic growth. This partnership unlocks billions of pounds to help UK businesses compete to win overseas contracts, showing how UKEF stands behind companies with global ambitions.”

Economic growth is the government’s number one mission, and backing British exporters is central to delivering it. This partnership puts billions of pounds within reach of ambitious small businesses across the UK, reinforcing UKEF’s role as one of government’s most powerful levers for growth. It builds on the government’s wider commitment to backing small businesses as engines of the economy, including measures to tackle late payments, cut red tape and create the right conditions for investment.

Together, these form a joined-up approach to removing barriers and helping smaller firms scale up. Working in partnership with business is central to the government’s growth mission. Alongside the trade and modern Industrial Strategies, the government is building on the UK’s unique strengths in high-growth sectors, boosting exports abroad and ensuring the benefits of growth are felt across every part of the country.

Through its Plan for Small Business, the UK Government is delivering the most comprehensive package of support for small and medium sized business in a generation. This includes the most significant legislation in over 25 years to end the scourge of late payments, which closes 38 business daily, a massive £4 billion finance boost to increase access to finance for entrepreneurs, and the launch of the new Business Growth Service, which is bringing together government support and advice in a single place for the first time.

Read more latest news from the Government here.

27.01.2026