Government support for UK exporters

Public Accounts Committee Closed Inquiry
Opened: 27 Jul 2020 Closed: 9 Nov 2020 Parliament page
The Department for International Trade (DIT) is a new department established in 2016 following the EU exit referendum, to be “at the heart of the Government’s independent trade policy following EU exit”. In 2019 the UK exported goods and services worth £698.6bn. Overall, the UK is the 6th largest exporter … Read more
2 Recommendations
22 Conclusions
1 Report
1 Oral session
2 Letters
1 Event
Activity timeline 6 events
16 Nov
2021
Correspondence
25 Oct
2021
Correspondence
4 Feb
2021
Report published
28 Oct
2020
Report published
14 Sep
2020
Oral evidence
14 Sep
2020
Formal meeting (oral evidence session) · The Boothroyd Room, Portcullis House
Oral evidence sessions 1 session
14 Sep 2020
View on parliament.uk
Government support for exporters
Antonia Romeo · Ministry of Justice Catherine Vaughan · Department for Work and Pensions Darren Tierney · Department for International Trade Louis Taylor · UK Export Finance
Title HC No. Published Items Response
Twenty-First Report - Government support for UK exporters HC 679 28 Oct 2020 24 Responded
Recommendations & Conclusions
24 results
2 Conclusion
Twenty-First Report - Government s…
The Department for International Trade and UK Export Finance are not yet doing enough to...
The Department for International Trade and UK Export Finance are not yet doing enough to identify and help the businesses of tomorrow to export. The Department’s level of insight into exporters in different sectors of the UK economy is variable. … Read more
Government Response
2020. Funding offered is determined by an objective formula, based on assessment of the Town Investment Plan. Feedback is provided on request. 2.4 In relation to funding decisions on the … Read more
HM Treasury
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3 Recommendation
Twenty-First Report - Government s…
The Department for International Trade’s contribution to export performance is unclear because of a lack...
The Department for International Trade’s contribution to export performance is unclear because of a lack of robust metrics. It is important for any public body to be clear about and accountable for what it is trying to achieve, and the … Read more
HM Treasury
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4 Recommendation
Twenty-First Report - Government s…
The Department for International Trade is not doing enough to address the challenges that small...
The Department for International Trade is not doing enough to address the challenges that small businesses face when they export. Out of an estimated 5.9 million businesses in the UK, the Department focuses its bespoke support on around 230,000 which … Read more
HM Treasury
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5 Conclusion
Twenty-First Report - Government s…
UK Export Finance directly supported only 199 customers in total in 2019–20, failing to meet...
UK Export Finance directly supported only 199 customers in total in 2019–20, failing to meet its own target of 500. UKEF attributes failing to meet its customer target to a lack of awareness among smaller businesses of what UKEF offers, … Read more
Government Response
The government agrees with this recommendation. Target implementation date: September 2021 5.6 UKEF launched the General Export Facility (GEF) in December 2020 following conclusion of negotiations with the five banks … Read more
HM Treasury
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6 Conclusion
Twenty-First Report - Government s…
It is more difficult for businesses who are not customers of five of the largest...
It is more difficult for businesses who are not customers of five of the largest commercial banks to access export finance. Smaller businesses would benefit from shorter turnaround times and simpler requirements when they apply for export finance. UKEF has … Read more
Government Response
The government agrees with this recommendation. Target implementation date: September 2021 6.2 Work is already underway to expand the number of banks operating under the delegated approach, and as soon … Read more
HM Treasury
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1 Conclusion
Twenty-First Report - Government s…
On the basis of a report by the Comptroller and Auditor General, we took evidence...
On the basis of a report by the Comptroller and Auditor General, we took evidence from the Department for International Trade (the Department) and UK Export Finance about support for exports.1
Government Response
In 2019, the UK exported £701.2 billion of goods and services to overseas countries. The UK is currently the sixth largest exporter in the world, behind China, the United States, … Read more
HM Treasury
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7 Conclusion
Twenty-First Report - Government s…
UKEF is concerned that where the Department’s staff do not have the technical skills to...
UKEF is concerned that where the Department’s staff do not have the technical skills to promote export finance, UKEF may consequently have missed opportunities to use export finance to support UK exports in some markets. For example, UKEF had supported … Read more
HM Treasury
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8 Conclusion
Twenty-First Report - Government s…
The Department’s insight into exporters in different sectors of the UK economy is variable; stronger...
The Department’s insight into exporters in different sectors of the UK economy is variable; stronger in well-established sectors, such as aerospace, but less developed and less well-understood for some emerging sectors such as renewable energy.13 The Department told us that … Read more
HM Treasury
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9 Conclusion
Twenty-First Report - Government s…
We were concerned that the Department concentrates on identifying which overseas markets might provide contacts...
We were concerned that the Department concentrates on identifying which overseas markets might provide contacts for the UK’s existing exporters.16 These may be larger firms in more established markets that already generate high value exports. However longer-term export growth will … Read more
HM Treasury
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10 Conclusion
Twenty-First Report - Government s…
Although sector teams within the Department for Business, Energy & Industry Strategy and the Department...
Although sector teams within the Department for Business, Energy & Industry Strategy and the Department for International Trade work together, officials at both departments consider there is scope for a better joint understanding of how to exploit emerging opportunities in … Read more
Government Response
2.2 The department and UKEF work closely with Department for Business, Energy and Industrial Strategy (BEIS) and across government to ensure domestic policies support export and investment ambitions across key … Read more
HM Treasury
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11 Conclusion
Twenty-First Report - Government s…
In 2018, the Government announced its export strategy and an ambition to raise exports as...
In 2018, the Government announced its export strategy and an ambition to raise exports as a proportion of GDP from 30% to 35%.24 This committee has recently highlighted how important it is for any public body to be clear about … Read more
Government Response
3. 1 The government disagrees with this recommendation. 3.2 The department already publishes metrics which cover its activities supporting exports, as part of a balanced suite of indicators. Metrics have … Read more
HM Treasury
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12 Conclusion
Twenty-First Report - Government s…
The Department informed us that it has a “raft of other measures” that it could...
The Department informed us that it has a “raft of other measures” that it could be measured against, including international comparators. It highlighted its ‘export wins’ measure, which is the value of exports that it thinks it has directly contributed … Read more
Government Response
3. 1 The government disagrees with this recommendation. 3.2 The department already publishes metrics which cover its activities supporting exports, as part of a balanced suite of indicators. Metrics have … Read more
HM Treasury
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13 Conclusion
Twenty-First Report - Government s…
The Department told us that it has recently introduced a value for money model to...
The Department told us that it has recently introduced a value for money model to assess the impact of its different interventions, but it is still relatively new. It recognised that there is work to do to improve its overall … Read more
Government Response
3. 1 The government disagrees with this recommendation. 3.2 The department already publishes metrics which cover its activities supporting exports, as part of a balanced suite of indicators. Metrics have … Read more
HM Treasury
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14 Conclusion
Twenty-First Report - Government s…
The Department intends to focus its bespoke support on around 230,000 businesses that have greatest...
The Department intends to focus its bespoke support on around 230,000 businesses that have greatest potential to generate high-value exports, specifically those with a viable service or product to export and a turnover above £500,000. We were concerned that this … Read more
Government Response
4.1 The government agrees with this recommendation. Target implementation date: September 2021 4.2 The department will continue to help small and medium-sized enterprises (SMEs) export including through the recently launched … Read more
HM Treasury
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15 Conclusion
Twenty-First Report - Government s…
The Department will provide support to all other potential exporters mainly through its website services.33...
The Department will provide support to all other potential exporters mainly through its website services.33 However, the National Audit Office reported that businesses have low satisfaction with the Department’s digital services (under half of the Department’s clients reported that services … Read more
Government Response
4.1 The government agrees with this recommendation. Target implementation date: September 2021 4.2 The department will continue to help small and medium-sized enterprises (SMEs) export including through the recently launched … Read more
HM Treasury
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16 Conclusion
Twenty-First Report - Government s…
The FSB also reported that the Department’s International Trade Advisors can vary in quality, that...
The FSB also reported that the Department’s International Trade Advisors can vary in quality, that small businesses do not know about the Department’s ‘Report a trade barrier’ scheme and are not using it, and that very small firms do not … Read more
Government Response
4.1 The government agrees with this recommendation. Target implementation date: September 2021 4.2 The department will continue to help small and medium-sized enterprises (SMEs) export including through the recently launched … Read more
HM Treasury
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17 Conclusion
Twenty-First Report - Government s…
The FSB informed us that the utilisation of Free Trade Agreements by smaller businesses is...
The FSB informed us that the utilisation of Free Trade Agreements by smaller businesses is disproportionately low when compared to larger firms. It has welcomed the inclusion of a small business chapter in the published objectives for each of the … Read more
Government Response
4.1 The government agrees with this recommendation. Target implementation date: September 2021 4.2 The department will continue to help small and medium-sized enterprises (SMEs) export including through the recently launched … Read more
HM Treasury
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18 Conclusion
Twenty-First Report - Government s…
In 2019–20 UKEF directly supported 199 customers, falling short of its target to support 500.
In 2019–20 UKEF directly supported 199 customers, falling short of its target to support 500. A further 140 customers benefited as suppliers to UKEF-supported projects. UKEF attributes lower than expected growth in the number of customers it supports to a … Read more
Government Response
5.5 The government agrees with this recommendation. Target implementation date: September 2021 5.6 UKEF launched the General Export Facility (GEF) in December 2020 following conclusion of negotiations with the five … Read more
HM Treasury
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19 Conclusion
Twenty-First Report - Government s…
UKEF said that its biggest problem is raising awareness with businesses and among the relationship...
UKEF said that its biggest problem is raising awareness with businesses and among the relationship managers of the banks it works with to provide export finance. UKEF encourages banks to lend by offering to guarantee up to 80% of their … Read more
Government Response
5.5 The government agrees with this recommendation. Target implementation date: September 2021 5.6 UKEF launched the General Export Facility (GEF) in December 2020 following conclusion of negotiations with the five … Read more
HM Treasury
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20 Conclusion
Twenty-First Report - Government s…
UKEF said that from next month (October 2020), it will introduce a general working capital...
UKEF said that from next month (October 2020), it will introduce a general working capital facility, which will be more usable for smaller exporters. It will enable them to go to their bank and get UKEF support for their total … Read more
Government Response
5.5 The government agrees with this recommendation. Target implementation date: September 2021 5.6 UKEF launched the General Export Facility (GEF) in December 2020 following conclusion of negotiations with the five … Read more
HM Treasury
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21 Conclusion
Twenty-First Report - Government s…
In response to the COVID-19 pandemic it has also expanded the scope of its Export...
In response to the COVID-19 pandemic it has also expanded the scope of its Export Insurance Policy to a wider number of markets, with the aim of protecting UK exporters from the risk of non-payment should UK exporters’ customers become … Read more
Government Response
5.1 The government agrees with this recommendation. Ta rget implementation date: September 2021 5.2 In the UK and overseas, UKEF plans to expand its network of ‘clean and green’ Export … Read more
HM Treasury
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22 Conclusion
Twenty-First Report - Government s…
The National Audit Office reported that UKEF application processes can be slow and smaller businesses...
The National Audit Office reported that UKEF application processes can be slow and smaller businesses would benefit from simpler requirements.51 The FSB told us that it also wanted to encourage UKEF to simplify and shorten the application process for any … Read more
Government Response
6.1 The government agrees with this recommendation. Target implementation date: September 2021 6.2 Work is already underway to expand the number of banks operating under the delegated approach, and as … Read more
HM Treasury
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23 Conclusion
Twenty-First Report - Government s…
To speed up application processes, UKEF delegated greater authority to five of the largest commercial...
To speed up application processes, UKEF delegated greater authority to five of the largest commercial banks who can apply for some of UKEF’s products through an online portal and can get immediate cover, and UKEF streamlined its eligibility criteria for … Read more
Government Response
6.1 The government agrees with this recommendation. Target implementation date: September 2021 6.2 Work is already underway to expand the number of banks operating under the delegated approach, and as … Read more
HM Treasury
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24 Conclusion
Twenty-First Report - Government s…
As it currently stands, UKEF confirmed to us that businesses who use banks other than...
As it currently stands, UKEF confirmed to us that businesses who use banks other than the five with UKEF delegated authority, cannot benefit from this streamlined process. UKEF told us that it planned to expand the number of other banks … Read more
Government Response
6.1 The government agrees with this recommendation. Target implementation date: September 2021 6.2 Work is already underway to expand the number of banks operating under the delegated approach, and as … Read more
HM Treasury
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Correspondence 2 letters
16 Nov 2021 Correspondence from James Bowler, Permanent Secretary, Department for International Trade, re update on the work that the Department has undertaken in response to the recommendations made by the Public Accounts Committee, dated 29 October 2021
Parliament page
25 Oct 2021 Correspondence Louis Taylor, Chief Executive, UK Export Finance, re UK Export update, dated 28 September 2021
Parliament page