The government has announced that UK Export Finance (UKEF) supported a total of 650 UK companies to export over the year 2023/24.
Two businesses a day
UKEF has offered £8.8bn in finance to support exporters over the last year in the form of loans and guarantees as well as insurance.
With an average of two businesses securing “crucial export financing every day of the year”, estimates suggest that UKEF’s support has allowed businesses to contribute £3.3bn to the UK economy and to sustain 41,000 full-time jobs.
Over half of those supported were SMEs, while 80% were based outside of London. The agency noted the success of two new financial products launched in recent years, including the Export Development Guarantee and the General Export Facility (GEF).
The Chartered Institute perspective
Marco Forgione, the director general of the Chartered Institute of Export & International Trade, hailed the success of the agency in boosting UK exports. He said:
“UK businesses have enormous potential and are recognised around the world for their quality. That is why the Chartered Institute is dedicated to empowering businesses with the skills and knowledge they need to ensure that they can trade effectively, sustainably and competitively around the world.
“Making trusted international trade easier and helping more UK businesses expand their international markets is central to getting growth into the UK economy. UKEF’s latest annual report is a welcome sign that supporting exporters of all sizes continues to be a priority for the government.”
Reid talks
The CEO of UKEF, Tim Reid, said his organisation was playing a “crucial role” in helping the UK’s firms to “bridge any financing gaps” limiting their ability to export.
“Our results from 2023 to 2024 show that we are stepping up to this challenge, with our highest level of support for UK businesses since the end of the COVID pandemic and our largest ever volume of financing guaranteed through our GEF product – a cornerstone of our offering to small businesses.
“Successes like these are part and parcel of the government’s work to ensure a stable and growing economy.”
Emphasis was also placed on the role of UKEF in supporting trade with specific regions, including £1.3bn in trade with African buyers, £419.5m with buyers in the Middle East and £376m with those in the Indo-Pacific.
A 2024-29 business plan for UKEF published in April has set out targets for increasing the scope of support offered by the organisation, which plans to support 1,000 SMEs before 2030.
SME focus
UKEF’s focus on SMEs was highlighted at the end of last year, when the agency’s conference took place in London. Then, UKEF introduced a “more flexible, fast-track funding” approach for SMEs with an ‘auto-inclusion’ scheme.
It also doubled the maximum volume of financial support for SMEs from £5m to £10m with increased flexibility on repayments.
Lord Offord of Garvel, then a trade minister, said at the time that supporting SMEs to export would be crucial to improve the UK’s regional economic performance and boost overall growth – a core focus of the new Labour government.