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UK Export Finance directly supported only 199 customers in total in 2019–20, failing to meet...

Conclusion
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, a potential decline in demand, a lack of appetite from banks and issues with its application process. UKEF is introducing more flexible products which are expected to be more attractive to smaller businesses in a wider range of markets and help increase customer numbers. These include the General Export Facility which will support businesses’ overall export working capital requirements, rather than linking this support to specific contracts. 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, and it has taken steps to proactively engage with the renewable energy sector, supporting projects in Taiwan, Spain and Ghana. However, how effective UKEF is at meeting its customers’ needs is unclear because, unlike the Department, it does not survey its customers to assess their satisfaction with its products and application processes. Recommendation: UKEF should report back to us in writing by September 2021 with an update on progress and action is has taken to: • Proactively target the green technology and renewable energy market. • Increase the number of SMEs it is supporting in a wider range of countries through take up of its new General Export Facility, and consider using UKEF recently approved marketing budget to do that. 8 Government support for UK exporters • Support exporters during the COVID-19 pandemic, particularly in relation to the expansion of the scope of its Export Insurance Policy to a wider number of markets. • Develop and implement a customer satisfaction survey. UKEF should consider the merits of developing its own survey as well as working with the Department to identify oppor
Government Response
Not Addressed
HM Government Not Addressed
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 currently operating the delegated schemes. By providing a product that 19 better fits with how banks lend to SMEs, the GEF may lead to a step change in the number of SMEs who receive UKEF support. 5.7 UKEF has refreshed its “Exporters Edge” marketing campaign, which raises awareness of UKEF among exporting SMEs. Promoting the uptake of GEF and other SME-focused products will be a central part of the campaign, working with UK banks and other industry partners. 5.8 At the beginning of 2020, UKEF adjusted the terms of its agreement with the banks to provide delegated authority for its trade finance products, streamlining delivery and making it easier for the banks to lend. 5.9 On the buyer finance side, UKEF has set up a new team to look at smaller transactions. This team is focused on improving these products to make the terms more straightforward, in turn opening up funding from new lenders that are better placed to operate in the SME space.
Addressee Bodies
HM Treasury
Timeline
Recommendation age 5.6 yrs
Report published 28 Oct 2020