Industry and Exports (Financial Assistance) Bill

Key Points

• - The Industrial Development Act cap would rise from £12 billion to £20 billion (with per‑order increases from £1 billion to £1.5 billion).
• - The UK Export Finance cap would rise to £160 billion, with scope for increases up to £15 billion and no limit on the number of increases.
• - The Bill creates the Industry and Exports (Financial Assistance) Act 2026 and amends the Export and Investment Guarantees Act 1991 to extend its application UK‑wide, removing a 2015 amendment.
• - Funding for these measures would come from a money resolution, not from new taxes.
• - In the Lords, amendments sought greater transparency and safeguards (annual impact reporting on devolved nations and on GDP/ SMEs/ EU trade; sector‑specific reporting such as for steel; anti‑reexport and human rights in supply chains).
• - The amendments reflect policy debates about accountability for large public subsidies, potential impacts on different parts of the UK, and whether funds should be conditioned on human rights standards and supply‑chain practices.

Progress

Having cleared the Commons, the Bill is moving through the Lords, where it reached the 3rd reading. In the Committee of the Whole House, several amendments were debated but defeated by large majorities, with Labour (Co‑op) opposing them. The Bill remains on track for Royal Assent in March 2026 if no further changes are made.

Voting

Three amendments were voted on in the Lords Committee of the Whole House on 23 February 2026. All three were defeated by large margins. Cross‑party support for the amendments came from Liberal Democrats, Conservatives, SNP, DUP, Plaid Cymru, Greens, Reform UK and others, while Labour (Co‑op) opposed them. This shows a divide between Labour and other parties on the level of safeguards and transparency attached to the funding increases.