Source · Select Committees · Public Accounts Committee
Recommendation 2
2
The Department for International Trade and UK Export Finance are not yet doing enough to...
Conclusion
The Department for International Trade and UK Export Finance are not yet doing enough to identify and help the businesses of tomorrow to export. The Department’s level of insight into exporters in different sectors of the UK economy is variable. For example, the Department is still developing its understanding of which businesses are ready to export in emerging sectors, such as renewable energy and low carbon industries. Over the last year, the Department has developed its sector teams by recruiting sector leads to help it better understand emerging sectors. The Department also continues to offer peer support where firms get an opportunity to hear how it is done from an experienced exporter. Initiatives such as the Europe trade hub have been welcomed by businesses of all sizes. We remain concerned, however, that the Department focuses on identifying which overseas markets might provide contracts for the UK’s existing exporters, rather than pursuing opportunities for future export growth by supporting new, innovative businesses. The Federation for Small Businesses (FSB) informed us that there needs to be a greater link between innovation funding and export finance. But, the Department is not confident that UK Research & Innovation (UKRI) fully understands what support companies need to become exporters, or whether its own staff consider whether innovation funding might be available to support a potential exporter. Recommendation: The Department and UKEF should develop a more integrated approach for working with other government departments, in particular with the Department for Business, Innovation and Skills and UK Research & Innovation, in order to build the UK’s industrial capability and prioritise investment in sectors of growing importance and export opportunity, such as renewable energy. The 6 Government support for UK exporters Department should also consider other ways of supporting potential exporters and companies exporting for the first time, for example,
Government Response
Acknowledged
HM Government
Acknowledged
2020. Funding offered is determined by an objective formula, based on assessment of the Town Investment Plan. Feedback is provided on request. 2.4 In relation to funding decisions on the Towns Fund and similar local growth programmes, the department will provide: where relevant, a record of Ministerial recusal from decisions affecting the constituencies of Ministers; a statement of the criteria that have been used to make decisions; and the details of scores or other assessments that have been used as part of the decision-making. 2.5 This will be provided to the Committee when all decision making is complete. On the Towns Fund, this will be when all 101 Towns have submitted Town Investment Plans and funding decisions have been made. 2.6 When Heads of Terms are agreed between the department and Towns, the department plans to publish these on GOV.UK. 2.7 The Levelling Up Fund announced at Spending Review 2020 includes £300 million previously set aside for a Towns Fund competition. This element of the Levelling Up fund will continue to support towns, and the department will set out the processes around it in due course.