21
In response to the COVID-19 pandemic it has also expanded the scope of its Export...
Conclusion
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 insolvent or their government actions make fulfilling the contract impossible.48 It also told us that it is being proactive in engaging with the renewable energy sector and has recently financed projects in Taiwan, Ghana and Spain. However, UKEF told us that its work is largely reactive and sector-agnostic, responding to demand in the market. Consequently, the lack 40 Federation of Small Businesses, 11 September 2020, paras 17, 18 41 Q 17 42 C&AG’s Report, paras 21, 3.9, 43 Pact, written evidence, September 2020, overview 44 Q 73 45 Q 75 46 Q 59 47 Qq 58, 72 48 Q 72 Government support for UK exporters 15 of a domestic supply chain in the UK in these sectors was identified as a constraint.49 The Environmental Audit Committee also noted that UKEF has been criticised for the ‘proportion of its support for the energy sector which goes to fossil fuel projects’.50 Accessing export finance outside of the five largest banks
Government Response
Not Addressed
Government Response
Not Addressed
HM Government
Not Addressed
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 Finance Managers (domestic) and International Export Finance Executives (overseas) with the aim of finding and securing further opportunities for UK exports in clean growth. 5.3 UKEF is increasing its marketing and communications targeted at the clean growth sector to raise awareness and increase the uptake of UKEF support among SMEs and larger companies’ supply chains. As a part of this, UKEF will promote opportunities to supply the international clean growth projects it supports, thereby building export capability. UKEF will engage more widely with trade bodies and other potential partners in the sector to support this activity. 5.4 At Budget 2020, an additional £2 billion was allocated to UKEF’s direct lending facility specifically to support clean growth projects. UKEF also revised its policy on UK content in 2019, allowing a more flexible approach, including the ability to take into account UK content within phases of a project that do not require finance. UKEF is now better placed to support UK businesses providing design and engineering or operation and maintenance services in projects where the capital goods are sourced from other markets.
Source
Committee
Public Accounts Committee
Report
Twenty-First Report - Government support for UK exporters
28 Oct 2020
HC 679
Addressee Bodies
HM Treasury
Timeline
Recommendation age
5.6 yrs
Report published
28 Oct 2020