British businesses backed by £7.4 billion government support to export around the world.
UK Export Finance publishes its annual results for 2021-22 and launches a new mission statement.
British businesses have been helped to export to 61 countries around the world over the past year with £7.4 billion of government support. Providing a significant boost to jobs and the UK economy.
The finance provided by UK Export Finance (UKEF) in 2021-22 supported 72,000 UK jobs. Which added a gross value of £4.3 billion to the economy. Meaning more money in people’s pockets and continued job security for British workers. This brings the total support over the last five years to £33.4 billion.
It helped businesses to recover following the pandemic. It is now supporting exporters facing challenges with global supply chains worsened by the Russian invasion of Ukraine.
And in its first year without providing any support for overseas fossil fuel projects. UKEF has launched a new mission statement and made ambitious carbon reduction targets to address climate change.
The UK is awash with untapped export potential. We have opened the door to the world with historic trade deals and now we are helping businesses walk through it. That’s why our national export credit agency, UK Export Finance, is boosting firms’ ability to export to the world with record-breaking support year after year.
Anne-Marie Trevelyan, Secretary of State for International Trade
Benefiting small businesses
UKEF has stepped up its support for small and medium-sized enterprises (SMEs). The number of SMEs that benefited from a UKEF support scheme increased by 25% compared to the previous year. With over 560 insurance and guarantee schemes issued.
In a new annual record, 81% of the companies UKEF supported directly with a scheme were SMEs. These milestones were underpinned by the ‘game-changing’ General Export Facility. A product designed specifically to give SME exporters more flexibility in accessing trade finance. Unlocking almost £250 million of working capital loans.
Moreover, UKEF provided £27 million to support importers buying from UK SMEs using its Standard Buyer Loan Guarantee Scheme. Ensuring UK companies get paid upfront while overseas buyers benefit from more flexible repayment terms.
New emissions targets
As the need to address climate change becomes increasingly urgent. UKEF has launched a new mission statement, putting sustainability at the centre of its purpose.
In its report, UKEF set new targets to reduce absolute emissions (tCO2e) of oil and gas sector exposure by 75% by 2030. Also, to reduce economic emissions intensity (tCO2e/£AAR) of power sector exposure by 58% by 2030. As it seeks to operate on a net-zero basis by 2050.
UKEF was also recently recognised as the top export credit agency for sustainable financing in 2021. According to an independent ranking of ECA-backed deals.
It comes as UKEF maintained sizeable levels of financial support in its first year without backing overseas fossil fuel projects. Instead it supported the clean energy, healthcare and critical infrastructure sectors with over £3.6 billion.
It was a pioneering and crucial step for UKEF to end its support for fossil fuel projects over a year ago. Now, with the new targets and mission statement we are launching today, UKEF is going even further to be a driving force behind the UK’s role in supporting the global energy transition. This can only be made possible with the skills and expertise of businesses across the UK, and UKEF is primed to offer its support as they seize these opportunities.
Mike Freer, Minister for Exports
Protecting the UK taxpayer
As a self-funding department, UKEF takes on risk to make exports happen and works within an agreed framework set by the Treasury to ensure it makes measured decisions.
Since the start of the pandemic, UKEF enhanced its suite of products to meet the changing needs of UK businesses and stimulate exports. Providing £8.2 billion of support through its Temporary COVID-19 Risk Framework since its inception.
UK Export Finance (UKEF) has provided vital support to exporters during the pandemic and is setting the pace amongst the ECAs in the global transition to sustainable trade. We at BExA look forward to working with UKEF over the coming year to continue to refine and develop its products to simplify and accelerate export journeys for UK SMEs.
Carl Stephen Patrick Hunter OBE, Chairman of the British Exporters Association
This follows an announcement by the UK government that it is set to unlock around 100 trade barriers worth more than £20 billion to help more businesses export.
Source: Gov.UK
Published: 30th June 2022