UKEF given £2bn boost to support British exporters
In his Autumn Budget, the Chancellor of the Exchequer announced two one-off additions of £1 billion to the UK Export Finance (UKEF) direct lending scheme, to be made available in the financial years 2020/21 and 2021/22.
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This measure represents a significant increase in the ability of UKEF to offer direct support to UK exports, reinforcing direct lending’s role at the heart of UKEF’s competitive offer.
Following the publication of the Export Strategy earlier this summer, this additional funding underlines the Government’s commitment to helping UK exporters take full advantage of international demand for British goods and services.
Under the direct lending scheme, UKEF provides overseas buyers of UK goods and services with financing support in the form of long-term, fixed-rate lending from the UK government on competitive terms. This support is particularly important in helping UK exporters compete, especially in fast-growing, emerging economies.
The allocation of an additional £2 billion of credit for buyers of British products and services by Chancellor Philip Hammond in the Budget, alongside other measures that include more support made available for investors and UK exporters in Europe, serves to prioritise the UK’s global economic role.
In addition, five of the UK's strongest trading partners will now be able to use eGates at the UK border.
A new UK mission to the Association of South-East Asian Nations (ASEAN) will also open. ASEAN is the world’s fifth largest trading bloc,and an important economic partner for the UK.
Ambassadors will work closely with the nine HM Trade Commissioners, appointed by the International Trade Secretary Liam Fox, who has led on all trade promotion and policy overseas.
In the Budget, the Chancellor announced:
An additional £2 billion for UK Export Finance (UKEF’s) direct lending for overseas buyers of British goods and services, helping exporters succeed in the global marketplace.
£5 million will be made available to the Department for International Trade (DIT) as it grows its European network to attract investment and help UK exporters land new deals on the continent.
Nationals from Australia, Canada, Japan, New Zealand and the United States will be able to use eGates at the UK border – ensuring business and leisure visitors from these countries have a fast and efficient arrival in the UK.
HMRC will halve the time it takes companies to become Trusted Customs Traders from 120 to 60 days, delivering the UK’s ambition to be a world leader in global customs administration.
International Trade Secretary Dr Liam Fox MP said: "From small businesses taking the first step on their exporting journey to international investors, this global Britain budget will help cement the UK’s position as one of the world’s best destinations to trade.
"The extra £2 billion for UK Export Finance will ensure it continues to be a game-changer for UK exporters and the additional support for my international economic department allows us to help businesses take full advantage of the limitless global trading opportunities. Whether it’s attracting investment or supporting exports, this Budget will drive the UK’s
growth and prosperity for years to come."