UK Exports: A Catalyst for Economic Growth, Reports Oxford Economics
Recent findings by Oxford Economics reveal that exports supported by UK Export Finance (UKEF) have contributed £23 billion to the UK economy over the past five years, simultaneously creating approximately 66,000 jobs annually. This underscores the essential role of government-backed initiatives in boosting the nation’s economic landscape.
Impact on the Business Sector
The study highlights that over 115,000 businesses across the UK are integrated into the export-related supply chains linked to UKEF’s clientele. This robust network ofcompanies bolsters the domestic economy, particularly within key industrial sectors.
These revelations coincided with the UK Trade and Export Finance Forum, the country’s most significant annual assembly of export professionals, where the discussion focused on how UKEF’s backing facilitates contract wins and order growth for various firms, enhancing job creation across communities.
Statements from Government Officials
Peter Kyle, the Secretary of State for Business and Trade, acknowledged the vital role exports play in economic advancement. He stated, “Our collaboration with UKEF has enabled numerous companies to market British goods and services globally,” while also emphasizing the need to amplify UKEF’s capabilities further to support more homegrown enterprises.
Tim Reid, CEO of UKEF, echoed this sentiment, asserting, “When UKEF backs a project, the positive effects transcend beyond the direct exporters we collaborate with.” He emphasized that the ripple effect from export growth benefits thousands of UK businesses within the supply chain.
The Role of UKEF in Financing
The report outlines UKEF’s pivotal role in helping businesses secure international contracts and access essential financing through government-backed guarantees and insurance. This financial support is vital to foster sectors identified as crucial for long-term economic resilience according to the government’s Industrial Strategy.
Advanced manufacturing emerged as the leading sector receiving UKEF support, representing 23% of its customer base in the last five years, followed by Professional and Business Services, which constituted 17% of the clients.
International Support and Local Impact
UKEF has actively participated in international projects, such as providing a government-backed guarantee to the Ukrainian Ministry of Finance, which enabled a £26.3 million loan aimed at reconstructing critical infrastructure. This loan allowed companies like Pro Steel Engineering from Torfaen, Wales, to secure significant contracts, demonstrating UKEF’s influence on local job markets and overall industrial capacity.
Another notable instance includes UKEF’s backing of Jaguar Land Rover, which is anticipated to secure £1.5 billion in commercial financing, ensuring the stability of skilled jobs within the UK automotive supply chain.
Future Prospects
Amid ongoing efforts to strengthen trade relations, recent initiatives have seen the Business Secretary and the Prime Minister negotiating £2.2 billion in export agreements during a visit to China, along with securing improved market access and reduced tariffs on UK products such as Scotch whisky. Such measures contribute to the broader aim of promoting growth and facilitating opportunities for UK businesses.
With a landmark £11 billion lending package recently announced, UKEF continues to demonstrate its commitment to supporting British businesses, especially small and medium-sized enterprises (SMEs), in expanding their international reach, which aligns with governmental objectives aimed at fostering economic growth across the UK.
Source: official statements, news agencies, and public reports.
https://www.gov.uk/government/news/uk-exporters-boost-economy-as-new-study-reveals-major-impact-of-export-credit-on-uk-industry
