UK Export Finance publishes its annual outcomes for 2021-22 and launches a brand new mission assertion
British companies have been helped to export to 61 international locations around the globe over the previous 12 months with £7.4 billion of presidency assist – offering a big enhance to jobs and the UK financial system.
The finance offered by UK Export Finance (UKEF) in 2021-22 supported 72,000 UK jobs and added a gross worth of £4.3 billion to the financial system, which means more cash in folks’s pockets and continued job safety for British employees.
Of these supported by UKEF, 83 per cent have been situated exterior of London and a report 81 per cent have been small and medium-sized enterprises, in line with the organisation’s annual outcomes printed at this time.
The £7.4 billion – the very best stage for 14 years – brings the full assist over the past 5 years to £33.4 billion.
It helped companies to recuperate following the pandemic & is now supporting exporters dealing with challenges with world provide chains worsened by the Russian invasion of Ukraine.
And in its first 12 months with out offering any assist for abroad fossil gas initiatives, UKEF has launched a brand new mission assertion and made formidable carbon discount targets to handle local weather change.
Anne-Marie Trevelyan, Secretary of State for Worldwide Commerce, commented: “The UK is awash with untapped export potential. Now we have opened the door to the world with historic commerce offers and now we’re serving to companies stroll by way of it. That’s why our nationwide export credit score company, UK Export Finance, is boosting companies’ means to export to the world with record-breaking assist 12 months after 12 months.”
Benefiting small companies
UKEF has stepped up its assist for small and medium-sized enterprises (SMEs). The variety of SMEs that benefited from a UKEF assist scheme elevated by 25% in comparison with the earlier 12 months, with over 560 insurance coverage and assure schemes issued.
In a brand new annual report, 81% of the businesses UKEF supported immediately with a scheme have been SMEs. These milestones have been underpinned by the ‘game-changing’ Common Export Facility – a product designed particularly to offer SME exporters extra flexibility in accessing commerce finance, unlocking nearly £250 million of working capital loans.
An extra £300 million was additionally awarded to 263 UK corporations supplying to infrastructure initiatives UKEF has financed throughout the globe, supporting UK exports. These embrace doorways made in Birmingham offered to an airport in Ghana, fridges made in Norfolk offered to a resort in Dubai and demanding medical provides shipped from South Wales to hospitals in Zambia.
Furthermore, UKEF offered £27 million to assist importers shopping for from UK SMEs utilizing its Normal Purchaser Loans Assure Scheme, guaranteeing UK corporations receives a commission upfront whereas abroad patrons profit from extra versatile compensation phrases.
New emissions targets
As the necessity to deal with local weather change turns into more and more pressing, UKEF has launched a brand new mission assertion, placing sustainability on the centre of its objective.
In its report, UKEF set new targets to scale back absolute emissions (tCO2e) of oil and fuel sector publicity by 75% by 2030 and cut back financial emissions depth (tCO2e/£AAR) of energy sector publicity by 58% by 2030 because it seeks to function on a net-zero foundation by 2050.
Additional to its mission assertion, UKEF was additionally just lately recognised as the highest export credit score company for sustainable financing in 2021, in line with an unbiased rating of ECA-backed offers.
It comes as UKEF maintained sizeable ranges of monetary assist in its first 12 months with out backing abroad fossil gas initiatives: it supported the clear power, healthcare and demanding infrastructure sectors with over £3.6 billion.
Mike Freer, Minister for Exports, added: “It was a pioneering and essential step for UKEF to finish its assist for fossil gas initiatives over a 12 months in the past. Now, with the brand new targets and mission assertion we’re launching at this time, UKEF goes even additional to be a driving pressure behind the UK’s position in supporting the worldwide power transition. This could solely be made attainable with the abilities and experience of companies throughout the UK, and UKEF is primed to supply its assist as they seize these alternatives.”
Defending the UK taxpayer
As a self-funding division, UKEF takes on danger to make exports occur and works inside an agreed framework set by the Treasury to make sure it makes measured choices.
For the reason that begin of the pandemic, UKEF enhanced its suite of merchandise to fulfill the altering wants of UK companies and stimulate exports – offering £8.2 billion of assist by way of its Momentary COVID-19 Threat Framework since its inception.
All through this time, the division continued to function effectively and handle monetary danger to guard the pursuits of the UK taxpayer in 2021-22, producing a web revenue of £324 million for the Treasury.
Carl Stephen Patrick Hunter OBE, Chairman of the British Exporters Affiliation, mentioned: “UK Export Finance (UKEF) has offered important assist to exporters through the pandemic and is setting the tempo amongst the ECAs within the world transition to sustainable commerce. We at BExA sit up for working with UKEF over the approaching 12 months to proceed to refine and develop its merchandise to simplify and speed up export journeys for UK SMEs.”
This follows an announcement by the UK authorities at this time that it’s set to unlock round 100 commerce obstacles value greater than £20 billion to assist extra companies export.