More overseas firms enticed to buy British
Overseas buyers will be offered a new UK Export Finance loan guarantee to incentivise buying goods and services from British companies.
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The UK Export Finance pilot initiative, worth up to £5 billion, will help British exports gain a foothold to high-growth economies like Brazil, Morocco and Mexico, creating jobs and stimulating growth back home.
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This follows the Chancellor identifying ‘Backing Britain’ through procurement and jobs as one of his main priorities, to drive growth in every postcode and bring hope back to communities.
British businesses will have more opportunities to ramp up their exports overseas and bring jobs and growth to communities back home under new plans announced by the Chancellor.
A new UK Export Finance (UKEF) pilot product - Flexible Finance – will see select buyers who operate in fast growing economies like Brazil, Morocco and Mexico where British exports could be greater, access loans on more flexible terms to incentivise buying British.
Unlike UKEF’s existing guarantees, this product will give borrowers greater flexibility in how they use funding, while encouraging finance-seeking buyers to work with the UK by accessing UKEF support and choosing British suppliers. Alongside this, UKEF will engage with UK suppliers through matchmaking and procurement support.
UKEF guarantees – up to £5 billion-worth in total under this pilot – will cover up to 80% of a commercial loan for select overseas buyers. This widens access to finance for the foreign borrower and establishes a relationship with UKEF. UKEF will partner with the borrower to grow their imports of goods or services from British companies.
This follows the Chancellor identifying ‘Backing Britain’ through procurement and jobs as one of his main priorities, to drive growth in every postcode and bring hope back to communities.
Chancellor of the Exchequer, John Healey MP, said:
We’re backing British businesses to strike more deals overseas. Especially in countries which are growing fast but we don’t have a big British footprint.
This is a new approach and part of the argument I will make in my speech in Liverpool on Monday that we are backing British industry and British innovation; helping create more markets abroad and more> jobs at home.
Secretary of State for Business, Innovation, Science and Trade, Jonathan Reynolds said:
We believe in Britain’s ability to sell to the world, and that includes taking strides into new markets with all the opportunities they bring for the UK.
Through Flexible Finance we are not just sending out a message to other nations that they should buy British, we are laying the foundation for good growth and jobs in the UK, as British companies bring home the benefits of a thriving export market.
This is the latest of various additions made to UKEF’s offering as it responds to the Industrial Strategy and follows the launch of a new defence export facility in June, increasing UKEF’s capacity for supporting defence exports by £50 billion.