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
6 Recommendations
18 Conclusions
1 Report
1 Oral session
2 Letters
1 Event
Activity timeline 5 events
16 Nov
2021
Correspondence
25 Oct
2021
Correspondence
4 Feb
2021
Report published
28 Oct
2020
Report published
14 Sep
2020
Oral evidence
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
12 results
Clear
6 Recommendation Accepted
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 to accelerate the expansion of banks operating under the delegated approach for UKEF products, aiming for September 2021. It will sign up new institutions for the General Export Facility and engage with other funders, including FinTechs, to adapt products to simplify access for exporters.
HM Treasury
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10 Conclusion Accepted
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
The government describes an integrated approach developed with BEIS, applying a new framework to critical net zero technologies to link innovation and export potential from early policy stages. While there are no immediate plans to partner on UKRI studies, DIT and UKEF will continue to seek opportunities for collaboration.
HM Treasury
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14 Conclusion Accepted
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
The government agrees and commits to continuing support for SMEs through a new £38 million Internationalisation Fund, exploring accreditation for International Trade Advisers, enhancing digital services, and promoting the 'report a trade barrier' service. These actions aim to broaden support beyond the largest businesses by September 2021.
HM Treasury
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15 Conclusion Accepted
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
The government agrees and commits to enhancing its digital offer for exporters by iterating services to increase quality and provide relevant content, data, and digital services. This aims to address concerns about low satisfaction and declining use of existing digital support for small businesses, with a target implementation date of September 2021.
HM Treasury
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17 Conclusion Accepted
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
The government agrees to continue helping SMEs export via the £38 million Internationalisation Fund and by including SME chapters in all Free Trade Agreements. It will also explore accreditation for trade advisers, build its digital offer, and promote the 'report a trade barrier' service, with information on existing barriers to be published on gov.uk.
HM Treasury
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18 Conclusion Accepted
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
The government agreed with the (implicit) recommendation, launching the General Export Facility, refreshing its marketing campaign, streamlining bank agreements for trade finance, and setting up a new team to improve buyer finance products for smaller transactions.
HM Treasury
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19 Conclusion Accepted
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
The government agrees and launched the General Export Facility (GEF) in December 2020, which is expected to increase SME support. UKEF has also refreshed its "Exporters Edge" marketing campaign to promote GEF and other SME-focused products, working with banks and industry partners.
HM Treasury
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20 Conclusion Accepted
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
The government agrees and confirms that UKEF launched the General Export Facility (GEF) in December 2020, which is designed to be more usable for smaller exporters and drive an increase in SME support. UKEF has also refreshed its marketing campaign to promote GEF and other SME-focused products.
HM Treasury
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21 Conclusion Accepted
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
The government agrees to expand UKEF's 'clean and green' Export Finance Managers network, increase targeted marketing for the clean growth sector, and allocate an additional £2 billion to UKEF's direct lending facility specifically for clean growth projects, with a target implementation date of September 2021.
HM Treasury
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22 Conclusion Accepted
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
The government agrees and is expanding the number of banks using the delegated approach and signing up new institutions for the General Export Facility. It is also engaging with other funders, including FinTechs, to adapt UKEF products, with an aim to implement by September 2021.
HM Treasury
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23 Conclusion Accepted
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
The government agrees to expand the number of banks operating under the delegated approach and to sign up new institutions for the General Export Facility as quickly as possible, with a target implementation date of September 2021. UKEF is also engaging with other funders like FinTechs to adapt its products, though these discussions are in early stages.
HM Treasury
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24 Conclusion Accepted
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
The government agrees to expand the number of banks operating under the delegated approach and to sign up new institutions for the General Export Facility as quickly as possible. UKEF is also engaging with other funders like FinTechs to adapt its products, with the first new partners expected shortly.
HM Treasury
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Government Response AI assessment · 21 of 6 classified
Accepted 12
Accepted in Part 2
Not Addressed 3
Rejected 4
Total 6 recs + 18 conclusions
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