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.
|
