Business, Freight News

Osborne promises ‘best export finance scheme in Europe’

[ March 19, 2014   //   Chris ]

Chancellor George Osbornevowed to make UK government export fiance the most competitive in Europe and end UK Export Finance’s status as lender of last resort , in his Budget on 19 March.

UKEF will boost its direct lending programme and consult on changes to broaden its powers, in his Budget on 19 March.

The Direct Lending scheme was launched in 2013 to help UK exporters are having difficulties securing export finance from other sources with direct loans. While initially structured as a backstop the Government had decided to double the scheme to £3 billion and to make it permanent.

The Government will also start an Export Refinancing Facility (ERF) by the end of April 2014, to ensure that long-term funding is available to overseas buyers of British exports when supported by UK Export Finance.

The move was welcomed by the managing director of forwarder Rhenus UK, David Williams who described the move to increase export funding from £1.5bn to £3bn as “a real shot in the arm for small and medium sized businesses, who may not have considered exporting as a viable option to grow. This announcement provides tangible support for UK manufacturers to enter new overseas markets, not just in the EU, but further afield in fast growing markets such as India and South America, he added.

The Freight Transport Association has welcomed the Cahncellor’s honouring of his pledge to freeze fuel duty cbut was disappointed that he had not actually reduced it.

Tags: Budget, Rhenus, UK Export Fianance