Call for more help for exporters

Published on Saturday 14 August 2010 16:20

THE coalition government must strengthen the UK's primary overseas trade agency, provide export credit insurance and de-politicise the planning system before the end of the year, according to business leaders.

In its "report card" for the government's first 100 days, the British Chambers of Commerce (BCC) will today claim progress "has been encouraging".

In the run-up to May's general election, the BCC laid down 12 targets for the incoming government to return the economy to sustainable growth.

The BCC said progress had exceeded expectations in terms of freezing public-sector pay, publishing a credible plan to reduce the budget deficit and bringing in a systematic review of regulation affecting employers.

But the trade body said that the Westminister government must strengthen UK Trade & Industry (UKTI), the agency that helps British businesses trade overseas and also attracts foreign investment to the UK.

It said the UKTI budget must be protected and not slashed in during the public-sector cuts.

David Frost, the BCC's director general, said: "Business wants to see more progress in areas such as international trade and reform of the planning system.

"While the Prime Minister has led a trade mission to India, we have not yet seen the appointment of a dedicated trade minister, nor a focused strategy for a strong export economy."

British exporters have reported a 16 per cent drop in the value of their trade with Portugal, Italy, Ireland, Greece and Spain (Piigs) over the past two years, according to a report by Close Treasury.

Both Germany and the United States help exporters to get trade credit finance and the BCC called on the UK government to introduce a similar short-term scheme to protect businesses against future "market shocks".

Mark Taylor, head of foreign exchange at Close Treasury, said: "The (economic] plight of the Piigs nations has been well documented and the UK's exporters have been hit hard."