The British government said it would increase its export credits to arms manufacturers by 2 billion pounds to boost overseas sales, AFP reports.
The new funds "will unlock billions of pounds for British defence companies that export overseas, boosting economic growth and creating jobs in the UK," the government said.

The UK Export Finance Agency already has the capacity to lend £8 billion specifically to government customers of defence companies, bringing the new total to £10 billion.

Like other countries in Europe, the UK is racing to bolster its military production capacity in the face of an expansionist Russia, pressure on European NATO members to spend more on defence and questions over President Donald Trump's commitment to US defence of Europe.

Ahead of his visit to the White House in February, British Prime Minister Keir Starmer pledged to increase defence spending to 2.5 per cent of the economy by 2027, with the aim of increasing it to 3.0 per cent in the next parliament.

"The world is changing and we need to usher in a new era of security and renewal that protects working people and keeps our country safe," said Chancellor of the Exchequer Rachel Reeves. | BGNES