Public funding for UK exporters nearly tripled to £ 12.3 billion last year

0


Public funding for UK exporters nearly tripled to its highest level in three decades last year to help support businesses during the pandemic

  • EasyJet, British Airways and Rolls Royce were among those who received help
  • About four-fifths of the 549 businesses that received direct support were SMEs
  • UK Export Finance said its funding has helped support up to 107,000 UK jobs

The government gave £ 12.3 billion to help UK businesses export goods during the pandemic and Brexit transition period last year, the highest amount in three decades.

Large employers such as EasyJet, British Airways and Rolls Royce were among the companies to receive support from UK Export Finance (UKEF), which provided almost triple the amount from the previous year.

However, about four-fifths of the 549 businesses that received direct support from UKEF were small and medium-sized businesses, according to the state body, which offers finance and insurance to help businesses secure contracts to the market. abroad and to be paid.

Going abroad: The government gave £ 12.3 billion to help UK companies export goods last year

The state body said the funding has helped businesses cope with the disruption created by the coronavirus crisis, which has led governments to impose strict trade and travel restrictions on goods and people.

UKEF said its funding supported 107,000 jobs in the UK, including 76,000 in large companies through the Export Development Guarantee, and exported goods to 77 countries.

One of the beneficiaries was Nissan UK, which had £ 480million on a £ 600million loan guaranteed by UKEF in April to help it produce vehicles at its Sunderland plant, where most cars made there are then sold abroad.

This follows the automaker’s plunge to a pre-tax loss of £ 544million in the 12 months leading up to March 31, from a profit of £ 133million the previous year as car sales fell. decreased and he was forced to temporarily shut down the production line.

It also provided £ 1.7 billion to a monorail project in Cairo, Egypt, the agency’s largest funding program for a civilian infrastructure project that will use Bombardier-made trains in Derbyshire.

Louis Taylor, UKEF Managing Director, said: “Last year has been one of the biggest challenges, but UKEF has helped UK businesses weather the storm, with a record year in favor of our exporters. .

“The economic fallout from Covid-19 has been particularly difficult for small businesses, which is why we have launched new products and extended existing products to keep them in business.”

Support: After suffering a heavy loss, Nissan UK had £ 480million on a £ 600million loan guaranteed by UKEF to help it produce vehicles at its Sunderland plant.

Support: After suffering a big loss, Nissan UK had £ 480million on a £ 600million loan guaranteed by UKEF to help it produce vehicles at its Sunderland plant

The agency plans to help further finance environmentally friendly projects and has already invested £ 2bn in clean growth projects, including £ 500m to finance three offshore wind projects in Taiwan.

The UK introduced a clean growth loan facility in 2020 to help businesses move away from fossil fuels and support projects involved in areas such as renewables, energy efficiency and electric vehicles.

Today, Exports Minister Graham Stuart announced the creation of a new “clean energy team” to underwrite green projects, which he said with the loan facility “would help the economy. to become stronger, fairer and greener again ”.

Green transition: UK introduced a clean growth loan facility in 2020 to help businesses and support projects involved in areas such as renewable energy

Green transition: UK introduced a clean growth loan facility in 2020 to help businesses and support projects involved in areas such as renewable energy

Exporters have complained that Brexit has made the process of sending goods overseas more complicated due to the higher costs and delays associated with additional bureaucracy.

Last Friday, the Food and Drink Federation released figures showing that total food and drink exports to the European Union fell by £ 1.4bn over the same period in 2020 and were £ 2bn. pounds sterling two years ago.

Dairy products saw the biggest drop in exports to the bloc, falling more than 90 percent. British cheese exports fell by two-thirds, while breakfast cereals, fish and savory snacks also sold much less abroad.

Dominic Goudie, Head of International Trade at FDF, called the £ 2bn drop a “disaster for our industry” and “a very clear indication of the scale of losses that UK manufacturers face in the long run in because of the new trade barriers with the EU. ‘



Share.

About Author

Leave A Reply