Exporting out of recession - Business, Innovation and Skills Committee Contents


Memorandum submitted by Department for Business, Innovation And Skills (UK Trade and Investment)

  

  The Memorandum covers:

  

    —   The importance of exports to the UK economy.

  

    —   The impact of the recession and the Government's response to it, placing UKTI's role in context of delivering the international business aspects of the Government's strategic vision for Britain's economic recovery, Building Britain's Future—New Industry, New Jobs.

  

    —   UKTI's strategy—how it equips UKTI to deliver real help for exporters and how it has been developed and refined to deal with the recession.

  

    —   How UKTI prioritises sectors.

  

    —   How UKTI prioritises markets.

  

    —   An overview of UKTI's response to the global recession.

  

  The Memorandum also includes two Annexes. The first covers UKTI's inward investment activities; much of what we do is as relevant to securing inward investment to the UK as it is to helping companies export. The second Annex gives more details on UKTI's sectoral marketing strategies.

  

  I hope this is helpful to the Committee and we would be pleased to provide more details on any aspect of UKTI's work that the Committee needs.

  

  We would also welcome the opportunity of further assisting the Committee in its Inquiry by attending an oral evidence session.

  

  The Committee will also want to be aware that, following on from the 22 April Budget, UKTI has been contacting its key stakeholders and advising them on how the Budget announcements impact on UKTI. The Committee will know that the Chancellor announced an extra £10 million of additional funding over the next two years, to be used to help UK businesses better showcase their strengths to overseas customers and markets. This is in line with the Government's strategy for Britain's economic recovery, Building Britain's Future—New Industry, New Jobs; more details on this are contained in the Memorandum. A copy of our letter to stakeholders is attached.

  

  Extract from a letter sent by UKTI to Exporters Concerning Budget Support:

  

    I am writing in follow up to the budget announcement of £10 million in additional funding for UK Trade and Investment (UKTI) to provide you with some further detail regarding its implications for UKTI.

  

    This is a budget for business and trade, reinforcing the Government's support to exporters, particularly to UK firms with a high potential for growth. The £10 million is in addition to the current annual programme budget of £91 million and will be spent over the next two financial years.

  

    This is an exciting opportunity to boost firms with a high potential for growth in establishing an international presence and to attract top investors and overseas buyers to show them the excellence that the UK has to offer and the strategic advantages of locating here.

  

    It is part of the £750 million Strategic Investment Fund that will deliver the Government's Building Britain's Future—New Industry, New Jobs strategy, published by the Secretary of State for Business on Monday 20 April. Sectors identified by New Industry, New Jobs as providing opportunities for growth include: low carbon, the digital economy, life sciences, advanced manufacturing and professional and financial services.

  

    Also announced in New Industry, New Jobs were proposals for the Export Credits Guarantee Department (ECGD) to improve support for trade by consulting on a new facility to help UK exporters get short-term trade finance, by sharing risk with banks in confirming letters of credit.

  

    In addition, the Government will review ECGD's programmes to make sure ECGD can best support UK exporters as global trade picks up. UKTI and ECGD will work together to maximise the export opportunities for UK business.

  

    As you know, the Government has an ambitious programme to promote global trade and investment and reject protectionism, as outlined at the London Summit.

  

    I look forward to discussing in more detail with you possible opportunities for your organisation to get involved.




 
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