The Chancellor of the Exchequer and Chief Secretary to the Treasury have unveiled a new UK Guarantees scheme aimed at accelerating major infrastructure investment and providing enhanced support to UK exporters.
The infrastructure part of the scheme is already in place but the export refinancing facility will not be available until later this year. It will support British exporters by ensuring that overseas buyers have the long-term funding they need.
UK Export Finance will begin supporting loans by the end of the year. Up to £5 billion of loans outstanding will be supported, with the programme designed to ensure that there are minimal risks to the public finances.
Sectors supported could include aerospace, oil and gas extraction equipment, transport and telecommunications infrastructure services, hospital construction and management services, and sports infrastructure.
Director-General of the Confederation of British Industry, John Cridland, said: “Investment and exports will be the dual drivers of future growth in the UK and this scheme should help fire up both engines.”
With regard to long-term loans to buyers of UK exports, he said: “We are not alone in seeking growth through exports – our European neighbours are competing to break into the same high-growth markets. Offering loans to foreign buyers will make UK exports more attractive and help more firms enter new markets.”
