Asked by
To ask Her Majesty’s Government what recent assessment they have
made of the effectiveness of their support for businesses to
increase exports.
The Parliamentary Under-Secretary of State, Department for
Business, Energy and Industrial Strategy () (Con)
My Lords, evidence shows that exporting businesses are 21% more
productive and pay higher wages than non-exporters. Government
support can help businesses to overcome exporting barriers. In
February, 96% of export support service users would recommend it
to other businesses and our 2018-19 export client survey
indicates that 76% of those using DIT’s face-to-face export
support were satisfied with its service. DIT is developing its
strategy for monitoring and evaluation to assess the impact of
the refreshed export strategy.
(Lab)
My Lords, I thank the Minister for his Answer, but contrary
evidence exists that states that UK exports are underperforming
in comparison to those of all advanced economies. In view of
this, can he detail what additional support the Government will
develop and provide for businesses that previously exported but
have since stopped because of unpredictable obstacles and
barriers?
(Con)
We want to continue providing as much export support to
businesses as possible. I do not think that the noble Baroness’s
criticisms are valid. The latest ONS monthly data shows goods
exports to the EU above the level that they were before the TCA
was signed. EU exports have performed better than non-EU exports,
but it is quite difficult to get a firm picture, as there are a
lot of contrary statistics around. We of course want to provide
all the support that we can to businesses.
(CB)
My Lords, will the Minister explain to the House why the
Government rejected the recommendation of your Lordships’
European Affairs Committee that the scheme for helping small and
medium enterprises to deal with the problems of Brexit be revived
and continued? Why was that decision taken and what was its
rationale?
(Con)
We are continuing to provide service to a range of businesses,
including small businesses, with the export support service. I
outlined in the Answer to the noble Baroness the general
satisfaction level of businesses with those services.
(Lab)
My Lords, as ever the Minister tries to paint a rosy picture of
how our exports are going but, as the noble Baroness, Lady
Ritchie, said, UK exports are underperforming against the rest of
the world. Exports across the world have bounced back strongly
coming out of the pandemic, yet the UK is the only country
tracked by the CPB where goods exports remain below the 2010
average. As a result, the UK has become a less trade-intensive
economy. Those are the facts. With no evident plan—the Prime
Minister’s comments yesterday rather suggested complacency—can
the Minister tell the House what steps the Government are taking
urgently to address this and other export-related issues?
(Con)
We can trade statistics and I can give the noble Lord alternative
statistics, but we are optimistic for our export service. We are
providing good support to businesses. Businesses across the UK
are continuing to export to EU member states and to non-EU member
states. We continue to be optimistic for the service. We will
provide support to businesses and I am confident that British
business will bounce back.
(LD)
My Lords, has the Minister had a chance to read paragraph 1.16 of
the OBR’s Economic and Fiscal Outlook? It states:
“With little evidence to suggest that we revise our assumption
about the negative effect of Brexit on UK trade flows, we
continue to forecast little growth in export and import volumes
and a fall in the trade intensity of the economy over the medium
term.”
Does he recognise how devastating a statement that is for a
trading economy such as ours? Can he tell the House what the
Government intend to do to address these highly damaging impacts
of Brexit?
(Con)
I have not had a chance to read the paragraph that the noble Lord
refers to, but I know that there are a number of contrary
statistics out at the moment and it is quite hard to disentangle
the various impacts. Of course, the pandemic had a serious effect
on all countries’ export performances, and many supply chains are
still suffering. I will certainly take the opportunity to read
the paragraph the noble Lord refers to.
(CB)
My Lords, I note the presentation of the Minister’s figures in
his initial response, but is it not the case that the DIT
calculates that for every £1 of government support, exporters get
a £4 return? The Heseltine No Stone Unturned competitiveness
report stated that a chamber-led approach would provide a 1:6
return. Why would the Government opt to use public finance for a
lower ROI option when public finances are stretched?
(Con)
I do not know the validity of those numbers. I will certainly
speak to the department and find out whether that is the case,
but I take the thrust of the noble Viscount’s question. The
export support service acts as a single point of inquiry for
businesses and traders. We have expanded the provisions that we
are offering. Export Finance, of course, is world leading. We
have trade ambassadors based in a whole range of our embassies
around the world to help exporters to expand their potential.
(Lab)
My Lords, does the Minister acknowledge the huge contribution
made by the British aerospace industry, still a great reservoir
of skills and success and perhaps edging beyond £8 billion in its
annual exports? What prospects are there for more research grants
for this great industry, bearing in mind the exciting
possibilities and potential of composites for ever more green
flight? Lastly, he might consider a visit to Broughton in
north-east Wales, where some 5,000 aerospace workers construct
the wings for the successful, world-beating Airbus company. There
he would see the consequences of investment, which means more and
more British exports.
(Con)
I totally endorse the noble Lord’s sentiments. The aerospace
industry is hugely successful, including at the Airbus site that
he referenced in Broughton in north Wales. A number of other
companies across the UK are also providing excellent aerospace
exports. Of course, we want to do everything that we possibly can
to encourage them. The aerospace industry has had a particularly
difficult time during the pandemic, with not many people flying
anywhere.
(Con)
My Lords, I am usually supportive of the Government, but I speak
from my personal experience of involvement in a small
horticultural business. Not only do we have difficulty in getting
people to pick the daffodil flowers that are in bloom at present,
but we also have other enormous problems. We used to be able to
load lorries in the evenings; the flowers were shipped across
overnight and were sold in the Dutch auctions before dawn the
next day. That is now totally impossible. Through plant health
regulations and customs requirements, we are no longer able to
ship overnight to the Netherlands auctions. It may be just an
indication, but these problems exist for a number of businesses.
(Con)
I am obviously very sorry to hear of my noble friend’s
experience. I will certainly take that back to the department to
see what we can do to alleviate those difficulties. There is
clearly some disruption at some ports, et cetera, and we are
attempting to smooth the flows of paperwork and export
requirements needed to trade with the EU at the moment. I know
that a lot of colleagues across government are working to try to
reduce those delays.
(LD)
My Lords, I am sure that the Minister will agree that businesses
in areas such as conference organisation, music and theatre,
which rely on people travelling from this country to countries in
the European Union, are suffering great confusion and difficulty
in moving their people to the right place in time. Having agreed
with that, can the Minister tell your Lordships’ House what the
Government are doing to smooth the path for what are mostly small
and medium-sized businesses that rely on moving their people
efficiently and friction-free across Europe?
(Con)
I am of course aware—we have discussed this before—that there
were difficulties for travelling musicians and others, which
principally revolved around the different visa requirements of
different EU member states, but I know that DCMS in particular
has been heavily engaged in working with member states to work
out exactly what the visa requirements are and to publish them on
the UK government website to provide support to businesses that
are struggling, exactly as the noble Lord says. I think that the
situation is a lot easier than it was last year.
(Con)
My Lords, does the Department for International Trade research
fully the demand potential for British products and services?
(Con)
Indeed, a huge amount of work goes on to identify businesses that
can export. The 2020 national survey informed us that something
like one in seven have never exported but have the potential;
their goods and services could be exported. They are very much
our target audience for providing export services to help them to
fulfil their potential.
