The International Trade Committee today publishes the
Government’s response to its report on UK Export Finance
(UKEF).
UKEF is the UK’s official export credit agency, which supports UK
exporters to find new markets through loans, guarantees and
insurance.
The report, published in September, found that, while UKEF has a
positive track-record in providing products that support
exporters, much of its support has been given to a small number
of sectors, and that it should explore ways to reach more of the
Government’s priority sectors.
In its response, the Government commits to reviewing how UKEF’s
business model could be diversified to support more sectors, and
to considering how UKEF can improve its support to, and
communication with, small businesses. UKEF agrees to develop
better methodologies for collecting and presenting information in
order to clearly explain how much support it gives to SMEs each
year.
The Government accepts in part the Committee’s recommendation
that it should consider amending UKEF’s mandate to ensure that it
takes environmental, social and human rights considerations into
account when making decisions about which projects to support.
While the Government agrees to review UKEF’s mandate, it argues
that making changes to it would be legislatively complex.
The Government also agrees to share details of its consideration
on how UKEF can contribute to meeting the UK’s net zero target by
March 2022.
Commenting on the Government response, , Chair of the
International Trade Committee, said:
“It is reassuring to see that the Government has positively
engaged with our report on UK Export Finance and has taken many
of our recommendations on board.
“As a Committee, we have called for UKEF to put serious thought
into how it can increase its support for renewables projects and
champion the route to net zero. It is vital that the Government
carries this work out as a matter of urgency.
“We hope the Government will also take bold action on amending
UKEF’s mission statement, so that it can more easily take
environmental, social and human rights considerations into
account when making decisions about which projects to support.
“Given the importance of UKEF to exporters in this country, we
will continue to watch developments in this area closely.”
-- ENDS --
Notes to Editors:
UK Export Finance inquiry
- The Committee launched its inquiry on UK Export Finance in
early 2021 and published its report in September 2021
- Further information, written evidence and session transcripts
can be found here.
