Twenty-First Report - Government support for UK exporters
Select Committee
Public Accounts Committee
HC 679
28 October 2020
Government response
Treasury minutes: Government response to the Committee of Public Accounts on the Twenty-first report from Session 2019-21 · published 4 Feb 2021
Recommendations & Conclusions
24 results
2
Recommendation
Not Addressed
The Department for International Trade and UK Export Finance are not yet doing enough to...
Recommendation
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. …
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Government Response Summary
The government's response addresses funding decisions for the Towns Fund and Levelling Up Fund, providing no direct engagement with the recommendation on DIT/UKEF's integrated approach or support for exporters.
HM Treasury
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3
Recommendation
Rejected
The Department for International Trade’s contribution to export performance is unclear because of a lack...
Recommendation
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 …
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Government Response Summary
The government explicitly rejects this recommendation, stating it already publishes a balanced suite of metrics and is developing more for priority outcomes. It will not commit to publishing any specific additional metrics until their robustness and accuracy are confirmed.
HM Treasury
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4
Recommendation
Not Addressed
The Department for International Trade is not doing enough to address the challenges that small...
Recommendation
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 …
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Government Response Summary
The government's truncated response indicates the department will provide annual updates on the success of a fund through monitoring and evaluation. It does not explicitly address the specific recommendations to improve ITA quality, explore accreditation, or ensure digital services meet smaller business needs.
HM Treasury
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5
Recommendation
Accepted in Part
UK Export Finance directly supported only 199 customers in total in 2019–20, failing to meet...
Recommendation
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, …
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Government Response Summary
The government agrees to the recommendation, stating it launched the General Export Facility (GEF) and refreshed its "Exporters Edge" marketing campaign to increase support for SMEs. However, the response does not explicitly address the recommendations to proactively target green technology, support exporters during COVID-19, or develop a customer satisfaction survey.
HM Treasury
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6
Recommendation
Accepted
It is more difficult for businesses who are not customers of five of the largest...
Recommendation
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 …
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Government Response Summary
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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1
Conclusion
Not Addressed
On the basis of a report by the Comptroller and Auditor General, we took evidence...
Conclusion
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 Summary
The government's response provides general background information about UK exports and the Department for International Trade's role, as the committee's initial paragraph was purely introductory and did not require action.
HM Treasury
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7
Conclusion
UKEF is concerned that where the Department’s staff do not have the technical skills to...
Conclusion
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 …
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HM Treasury
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8
Conclusion
The Department’s insight into exporters in different sectors of the UK economy is variable; stronger...
Conclusion
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 …
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HM Treasury
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9
Conclusion
We were concerned that the Department concentrates on identifying which overseas markets might provide contacts...
Conclusion
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 …
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HM Treasury
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10
Conclusion
Accepted
Although sector teams within the Department for Business, Energy & Industry Strategy and the Department...
Conclusion
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 …
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Government Response Summary
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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11
Conclusion
Rejected
In 2018, the Government announced its export strategy and an ambition to raise exports as...
Conclusion
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 …
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Government Response Summary
The government explicitly disagrees, stating it already publishes a balanced suite of export performance indicators and has developed a framework including a theory of change. It will not commit to publishing additional metrics until they are robust and accurate, effectively rejecting the committee's implicit call for clearer targets and improved performance measures.
HM Treasury
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12
Conclusion
Rejected
The Department informed us that it has a “raft of other measures” that it could...
Conclusion
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 …
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Government Response Summary
The government explicitly disagrees, stating it already publishes a balanced suite of metrics and is developing more for priority outcomes. It commits to developing a better understanding of its impact but will not commit to publishing any specific additional metrics until their robustness is confirmed.
HM Treasury
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13
Conclusion
Rejected
The Department told us that it has recently introduced a value for money model to...
Conclusion
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 …
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Government Response Summary
The government explicitly disagrees with the implied recommendation, stating it already publishes a balanced suite of export performance metrics and is developing a theory of change. It commits to developing a better understanding of its impact but will not commit to publishing any specific additional metrics until they are deemed robust and accurate.
HM Treasury
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14
Conclusion
Accepted
The Department intends to focus its bespoke support on around 230,000 businesses that have greatest...
Conclusion
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 …
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Government Response Summary
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
The Department will provide support to all other potential exporters mainly through its website services.33...
Conclusion
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 …
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Government Response Summary
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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16
Recommendation
Accepted in Part
The FSB also reported that the Department’s International Trade Advisors can vary in quality, that...
Recommendation
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 …
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Government Response Summary
The government agrees and will explore accreditation for International Trade Advisers and promote the 'report a trade barrier' service by September 2021. However, the response does not explicitly address the recommendation regarding TAP grants for virtual trade shows or analyzing why businesses export only once.
HM Treasury
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17
Conclusion
Accepted
The FSB informed us that the utilisation of Free Trade Agreements by smaller businesses is...
Conclusion
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 …
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Government Response Summary
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
In 2019–20 UKEF directly supported 199 customers, falling short of its target to support 500.
Conclusion
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 …
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Government Response Summary
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
UKEF said that its biggest problem is raising awareness with businesses and among the relationship...
Conclusion
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 …
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Government Response Summary
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
UKEF said that from next month (October 2020), it will introduce a general working capital...
Conclusion
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 …
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Government Response Summary
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
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 …
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Government Response Summary
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
The National Audit Office reported that UKEF application processes can be slow and smaller businesses...
Conclusion
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 …
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Government Response Summary
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
To speed up application processes, UKEF delegated greater authority to five of the largest commercial...
Conclusion
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 …
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Government Response Summary
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
As it currently stands, UKEF confirmed to us that businesses who use banks other than...
Conclusion
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 …
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Government Response Summary
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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