Westminster has given the North more headroom for big‑ticket investment. On 18 March 2026 the Industry and Exports (Financial Assistance) Act became law, raising the cap on selective financial assistance under the Industrial Development Act and increasing UK Export Finance’s statutory commitment limit. The UK Parliament bill page confirms Royal Assent and the move from bill to Act. (bills.parliament.uk)

For manufacturers weighing up a new line in Sheffield or a capacity upgrade in Sunderland, the main change is simple: the Industrial Development Act’s section 8(5) aggregate limit climbs from £12bn to £20bn, with the per‑order uprate the Secretary of State can seek (with Treasury consent) rising from £1bn to £1.5bn. That is the legal ceiling for selective financial assistance used to back strategic projects. (bills.parliament.uk)

Exporters get a clearer runway too. UK Export Finance’s overarching commitment limit, previously expressed as 82,700 million Special Drawing Rights after 2024 adjustments, is now set in sterling at £160bn. Ministers can lift that by up to £15bn at a time via secondary legislation, and the cap on how many times they can do so has been removed. The text also switches references so calculations sit in pounds, not SDRs. (bills.parliament.uk)

This builds on the 2024 tranche of statutory instruments that took the limit to 82,700m SDR. Framing today’s headroom in sterling should make life plainer for finance directors scoping multi‑year export deals with overseas buyers and their banks. (bills.parliament.uk)

The Department’s own explanatory notes call the industry‑funding changes “inflation adjustments since the limit was last raised” in 2009. For Northern firms who remember the 2009 tweaks, this is the overdue tidy‑up that stops the legal cap, not market demand, from being the pinch‑point. (bills.parliament.uk)

What does this mean on the ground? Think aerospace orders in Lancashire, rail and EV supply chains anchored by Sunderland, offshore wind and maritime work on the Humber and Teesside, and advanced manufacturing across South Yorkshire and West Yorkshire. Bigger legal limits don’t write cheques by themselves, but they do let Whitehall stand behind more-and larger-deals when projects stack up.

There are guardrails. Section 8 support still needs Treasury consent and must meet the longstanding tests: benefit the UK (or a part of it), be in the national interest on the scale proposed, and not be available appropriately from elsewhere. In practice, firms will still need bankable business cases, robust supply chains and credible delivery plans. (bills.parliament.uk)

On exports, UKEF must continue to price and structure support within international rules. Due diligence, sanctions screening and modern‑slavery checks are only getting tighter. MPs pressed these points during Commons stages, with some pushing for stricter human‑rights conditions and annual sector reporting, including on steel-a live concern in our region. (hansard.parliament.uk)

Timing matters for project teams. The Act applies UK‑wide and takes effect after a two‑month commencement period following Royal Assent-so firms aiming for summer financial closes should already be in discussions with combined authorities, lenders and UKEF to sequence bids, guarantees and any selective assistance. The clause on extent and commencement is explicit. (bills.parliament.uk)

One final parliamentary footnote worth noting for the detail‑minded: the measure was certified as a Money Bill, underlining its narrow focus on public financial limits. Politically, it drew cross‑party acknowledgement as a “common‑sense adjustment of limits”. For Northern exporters and manufacturers, the message is clear: line up investable projects and bring the pipeline forward. (bills.parliament.uk)