- UKEF provided Â£ 12.3 billion in financial support for UK exports to 77 countries
- UKEF has more than doubled the number of UK businesses helped in the past two years
- Up to 107,000 jobs in the UK have been supported and exporters have been helped to continue trading during the pandemic
UK export finance (UKEF) provided Â£ 12.3 billion in support to UK exports from 2020 to 2021, almost triple the amount provided the previous year, according to its new annual results released today.
UKEFAFR’s financial support and rapid response during the pandemic are estimated to have supported up to 107,000 UK jobs and helped keep key UK businesses and industries afloat.
A temporary Covid risk framework was introduced last April, which gave the department additional capacity to support businesses affected by COVID-19. Through this framework, UKEF provided Â£ 7.3bn in support to exporters severely disrupted by the pandemic, securing up to 71,000 UK jobs at big companies like Nissan, easyJet and British Airways that might otherwise have been lost.
UKEF also pledged in December to end support for new fossil fuel projects abroad, in line with the prime minister’s ten-point plan for a green industrial revolution. As part of this commitment, Exports Minister Graham Stuart will announce today (June 23) to the International Trade Select Committee that UKEF has created a new underwriting team Managing renewable energies, energy and carbon.
The team of 20 people will ensure UKEF has the resources to deal with increased business volumes in sectors such as wind power, solar power, green hydrogen, grid resilience and decommissioning, and to develop relationships in these sectors in order to maximize the participation of UK companies in international projects.
UKEF has launched new products over the past year to help more UK businesses access the funds they need to go global, including the General Export Facility put in place to support SME. Therefore, the number of exporters, including small businesses, that access UKEFUK support has more than doubled over the past two years and is expected to increase further as the UK continues to sign new free trade agreements.
Exports Minister Graham Stuart said:
UKEF stepped up when his help was needed most. The coronavirus has placed the UK in its most economically difficult position in decades. UKEF has been at the heart of the government’s response and has provided Â£ 12.3 billion to support UK exports – the most in 30 years. This support has helped our nation of exporters continue to sell to the world during this pandemic.
We are opening up the world’s fastest growing markets through the trade deals we are negotiating so the UK can recover from the pandemic as quickly as possible. Thanks to the talent and dedication of UKEF staff, companies can now make the most of our ambitious trade policies. With a loan facility dedicated to clean growth and the new Clean Energy team that I am announcing today, UKEF will help the economy to become stronger, fairer and greener again.
Marcus Dolman, co-chair of the British Exporters’ Association (BExA), welcomed the results and said:
UKEF stepped up and provided much-needed support to support exporters during the pandemic. The new EDG and GEF products are already proving their value for UK exporters and for supporting UK employment. It is also encouraging to see an increase in UKEFtraditional support of. The increase in the number of supported exporters is positive.
The continued expansion of UKEFThe products of is essential to position the UK at the forefront of the green industrial revolution. BExA look forward to continuing to work with UKEF expanding their product line to ensure the UK is ready to reenter the world when restrictions ease.
UKEF Highlights 2020-21
- UKEF underwent a record business volume, providing Â£ 12.3 billion in financial support for UK exports to 77 countries.
- Supported 549 companies in 2020-2021, more than double the number from two years ago, supporting up to 107,000 jobs in the UK.
- 79% of companies UKEF supported were SMEbecause the ministry supported hundreds of small export contracts during the year. His smallest contract was Â£ 297 of export insurance for a London-based recruiting company that exported to the United States.
- Introduced a Temporary Covid Risk Framework (TCRF) to support businesses affected by COVID-19, providing Â£ 7.3 billion in support through it.
- Has subscribed its largest civil infrastructure project with Â£ 1.7bn to build two monorail lines in Cairo, supporting the first export of trains built in the UK in over 12 years.
- Provided Â£ 7.6bn in support to leading exporting companies, helping to support up to 76,000 jobs through its new Export Development Guarantee, including Ford, Nissan, Subsea 7, Rolls Royce, easyJet and British Airways .
- Launch of new products to help UK SME exporters take advantage of business opportunities through the General Export Facility and the Standard Buyer Loan Guarantee.
- Remains the most ethnically diverse department in Whitehall, with 31% of UKEF staff who identify as ethnic minorities.
UK Export Finance is the UK’s export credit agency and a government department, working alongside the Department for International Trade as part of its strategy and operations.
Established in 1919, it exists to ensure that no viable UK export fails for lack of private market funding. It provides financing and insurance to help exporters win, complete and get paid for export contracts.
UKEFSupport is provided on a commercial basis in partnership with over 100 private sector providers and the ministry charges a premium to cover its costs and the risk it assumes, with no net cost to the taxpayer over time.