Parliament has enacted the Industry and Exports (Financial Assistance) Act 2026, a short technical statute that raises statutory ceilings for selective industrial support and for UK Export Finance (UKEF) commitments. Royal Assent was granted on 18 March 2026 and the Act takes effect two months later, at the end of 17 May 2026 (i.e. from 18 May 2026). (lordslibrary.parliament.uk)
For domestic industry support, the Act amends section 8(5) of the Industrial Development Act 1982. The aggregate limit for selective financial assistance rises from £12,000 million to £20 billion. The amount by which the Secretary of State may raise that limit by order (with Treasury consent) on up to four occasions increases from £1,000 million to £1.5 billion. (publications.parliament.uk)
For exports and overseas investment, the Act revises section 6 of the Export and Investment Guarantees Act 1991. The statutory commitment limit that constrains UKEF’s overall portfolio is reset from 82,700 million Special Drawing Rights (SDR) to £160 billion and, crucially, is now stated in sterling rather than SDR. (publications.parliament.uk)
The mechanism for incremental uplifts is also overhauled. Future increases to UKEF’s cap may be made by draft affirmative statutory instrument in steps of up to £15 billion, and the previous cap on the number of occasions those increases could be made is removed. Cross‑references are tidied and “sterling” is inserted into the currency equivalence provision to align the statute. (publications.parliament.uk)
On scale, the previous SDR‑denominated ceiling equated to roughly £84 billion at recent rates; moving to a £160 billion sterling limit therefore provides materially more headroom while eliminating exchange‑rate drift in the statute itself. That change is explicitly framed by the Government as supporting export growth while keeping authorisations within Parliament’s control. (publications.parliament.uk)
The Explanatory Notes record that UKEF provided about £14.5 billion of support to 667 businesses in 2024/25, which officials estimate supported up to 70,000 jobs and contributed up to £5.4 billion to GDP. Ministers argue the enlarged, sterling‑based limit reflects that portfolio growth and reduces operational complexity. (publications.parliament.uk)
Territorially, the Act extends to England and Wales, Scotland and Northern Ireland and applies across the UK. Export finance and the aggregate spending limit in section 8(5) are reserved matters; no legislative consent motions were required from the devolved legislatures. (publications.parliament.uk)
In practical terms, the section 8 uplift widens the headroom available for selective financial assistance but does not alter gatekeeping tests: any package still requires a ministerial assessment that support benefits the UK economy and cannot appropriately be provided otherwise, plus HM Treasury consent. The new UKEF ceiling functions similarly as capacity, not an instruction to spend, with individual transactions remaining subject to risk, value‑for‑money and parliamentary scrutiny via affirmative SIs when further headroom is sought. (publications.parliament.uk)
A minor clean‑up aligns earlier legislation. Section 12(2) of the Small Business, Enterprise and Employment Act 2015 is omitted to reflect the move from SDR to sterling and the revised approach to incrementing commitment limits, and a cross‑reference in section 6(4A) of the 1991 Act is updated accordingly. (publications.parliament.uk)