GOVERNMENT moves to boost exports by companies in the UK have been broadly welcomed by business groups.
Organisations including the North East Chamber of Commerce and the Federation of Small Businesses have echoed the coalition’s statement that it is “vital” to increase exports.
The UK’s trade deficit widened to its highest level since 2005 in December and Germany currently exports more than three times as much as Britain.
Business secretary Vince Cable described trade and inward investment as “fundamental to rebuilding and rebalancing our economy” and pointed to pledges made in a trade and investment white paper as measures that could “oil the wheels of trade”.
The Department for Business Innovation and Skills will offer export advice worth up to £1m to small and medium enterprises as part of the Export Enterprise Finance Guarantee Scheme.
An export working capital scheme will also be created, as will a bond support scheme, and the Export Credits Guarantee Department will share credit risk with banks to allow them to offer foreign exchange hedging contracts to small and medium businesses.
The Government has also pledged to increase UK Trade and Investment’s focus on emerging markets and finalise the Doha round of trade negotiations to deliver an estimated £110bn a year boost to the world economy. North East Chamber of Commerce chief executive James Ramsbotham said: “Measures such as these will really benefit the North East because as a region we export more of the things we do and make than other parts of the country.
“A big issue is export finance and there are some very specific complexities of credit insurance involved with getting products overseas that are very difficult for businesses to get hold of.
“The UKTI does give support to businesses and we’ve had some successes in the North East, but more can always be done. It’s not about providing huge grants but giving people the right intelligence to set up abroad.
“Exporting is such a key area for UK Plc so it should be a key issue for Government.”
Federation of Small Businesses national chairman John Walker described the measures as “timely”.
He said: “A recent Federation of Small Businesses' report showed that one in five small firms found accessing the correct finance options when exporting challenging and more than 40% said better access to finance would encourage them to export more.
“With 77% of the businesses surveyed not currently exporting, this announcement should help some of them to get a foothold in a new market and strengthen the UK's economic recovery.”
Hundreds of North East businesses showed they were keen to increase exports when attending a packed programme of events in International Trade Week last week.
Events were organised by export agency UKTI working with HSBC and key partners and business organisations across the region, including Business Clubs North East, Royal Institute of British Architects, Institution of Civil Engineers, Asia Business Connexions and Lloyds TSB.
David Coppock, UKTI’s international trade director, said: “More than 360 companies and individuals took part in the initiative and we’re delighted so many took advantage of the opportunity to find out how international trade can help their business grow.”
