Key Facts

• Clause 1(a) increases financial assistance limit from £12 billion to £20 billion.
• Clause 1(b) raises incremental increase limit from £1 billion to £1.5 billion.
• Clause 2 increases commitment limit for exports and overseas investment from £84 billion to £160 billion.
• Clause 3 outlines the territorial extent of the Bill, confirming no legislative consent motion process engagement.
• Sky News analysis shows a surge in exports from the UK to Kyrgyzstan, Armenia, and Uzbekistan by over 1,000%.
• Components of UK origin have been found inside Russian military equipment used in Ukraine.
• New clause 2 would require an annual report on financial assistance for the steel industry.
• The Bill aims to increase headroom for industrial financial assistance and UK Export Finance.
• Firms in Halesowen and Cradley Heath lose contracts due to inability to bridge working capital gaps.
• Davro Steel is a downstream steel SME in the constituency.
• Concerns exist about potential negative impacts on downstream steel processors from tariff safeguards.
• The Black Country has deep links to defence manufacturing.
• The Industrial Development Act cap is raised from £12 billion to £20 billion.
• UK Export Finance’s commitment limit nearly doubles from £84 billion to around £160 billion.
• UKEF’s 2024 to 2025 activity contributed £5.4 billion to the UK economy.
• There are 5.7 million SMEs in the UK, with UKEF supporting just 667 businesses annually.
• The amendments would lower permitted financial assistance to zero if there is reason to believe modern slavery is present in a recipient’s supply chain.
• UKEF supported a subsidiary of AVIC, sanctioned by the US as a People's Liberation Army entity, and China Southern Airlines linked with involuntary labour transfers.
• The Bill aims to prevent public money from flowing to entities sanctioned by allies, disrupting multilateral relations and competitiveness.
• The Industry and Exports (Financial Assistance) Bill applies unevenly across the UK due to EU state aid rules.
• Article 10 of the Windsor framework subjects Northern Ireland to EU state aid rules.
• Companies in Northern Ireland face disadvantages compared to GB companies in accessing equal state aid.
• The Industrial Development Act 1982 cap is lifted by the Bill.
• EU state aid rules apply in Northern Ireland under article 10 of the Windsor framework.
• The Federation of Small Businesses reported that 58% of businesses in Northern Ireland face moderate to significant challenges due to these arrangements.
• The Modern Slavery Act needs to be beefed up to include criminal offences for companies failing to check their supply chains.
• UKEF already reports annually and is cleared through the National Audit Office.
• UKEF has officers across the whole of the United Kingdom, including in Northern Ireland.
• The government implemented sanctions worth over £20 billion against Russia.
• Since January 2025, the Government provide regularly updated guidance to UK exporters on at-risk goods.
• UKEF supported 496 SMEs in 2024-25 due to changes making it easier for smaller businesses to access funding and financing.
• £14.5 billion of UK Export Finance support last year is supporting up to 70,000 jobs.
• The northern powerhouse investment fund II has directly invested £115 million into over 300 small businesses.
• A midlands engine investment fund II launched a £400 million fund for sustainable economic growth.