- Red tape cut to shorten the time it takes for British
businesses to complete international export deals.
- Work to expand financial backing for UK defence firms seek
international exports.
- New Defence Industrial Strategy will make the UK the best
place in the world to start and grow a defence firm.
British businesses will be championed on the global stage to
increase export sales, under reforms taking place in the Defence
Industrial Strategy, due for launch later today.
In a significant change to boost exports, UK firms will be able
to apply for export licences whilst they are bidding for
international work, rather than having to wait for the process to
conclude.
This move will help UK companies win significant work on the
international stage, shortening order timescales and giving
greater confidence to overseas customers that UK companies are a
reliable choice.
The Government is also taking steps to expand UK Export Finance
(UKEF)'s ability to back major defence contracts, legislating to
increase the maximum size of UKEF's financial portfolio.
International defence contracts are increasingly demanding
state-backed financing to be fulfilled. To ensure the UK remains
a highly competitive partner of choice for international defence
contracts, the government will bring forward legislation to
expand UKEF's financial capacity and will consider a new
strategic approach to defence financing for larger,
multi-billion-pound deals.
Defence Secretary MP said:
"We're backing British businesses to win on the international
stage by cutting red tape for major export campaigns.
"Ensuring our firms can bid for international work with greater
confidence is an important change that will make defence an
engine for growth and good jobs for people across the
nation.”
Kevin Craven, CEO of ADS, representing 1600 businesses in
aerospace, defence, security and space,
said:
“Exports from the UK's defence and security sectors have doubled
in the last decade. UK-made capability is in demand, and any way
that government and industry can work together to speed up this
process is welcomed. The ability for businesses large and small
to be able to secure licenses during the tender process means
that production can begin sooner, workers can be retained, and
ultimately, the UK's competitive advantage can be secured.
“On behalf of our over 1,000 industry members operating in this
space, we look forward to partnering with the government to
ensure that the UK's rigorous export licensing systems are
maintained while business thrives within that system.”
The UK's defence industry is a global powerhouse showcasing
hundreds of thousands of highly skilled workers and the very
latest cutting-edge technologies. The reforms come after the UK
recently announced a deal to export at least five Type 26
frigates to Norway in a £10 billion boost to the economy,
supporting over 4,000 British jobs for years to come.
UKEF support has already been a critical enabler for UK defence
exports and the work to expand their financial capacity will help
boost further opportunities for British companies to secure
international orders.
Defence exports are now worth over £14.5 billion annually and
growing – making Britain the world's second-largest arms exporter
after the United States, supporting work to make defence an
engine for economic growth and delivering on the Plan for
Change.
