The UK government’s export credit agency, UK Export Finance (UKEF), is in the spotlight today, as a report from Oxford Economics highlights its impact on UK trade and supply chains.
We also have a report from the agency’s UK Trade and Export Finance Forum, taking place today in London.
UKEF driving exports
A new report from Oxford Economics has found that UKEF, the government agency that offers credit to businesses to export, has backed deals that have brought £23bn to the UK economy over the last five years.
The government notes how the agency’s work has also supported 66,000 full-time equivalent jobs in that time. There are also over 100,000 businesses in supply chains that have been supported through UKEF financing.
The report has been published to coincide with the UK Trade and Export Finance Forum, where business and trade secretary Peter Kyle is to deliver a speech today (5 February). He said of the report:
“Exports fuel growth, and UKEF has enabled thousands of companies to take British products and services to customers worldwide.
“But we must go further. I will use everything in my power to ensure businesses can scale here in the UK. This means expanding the firepower of UKEF to help many more homegrown success stories go global and boost our economy.”
On the ground
Grace Thompson, the Chartered Institute of Export & International Trade’s public affairs lead, is attending the Forum today.
Discussing Kyle’s speech to the conference, she noted that he “spoke of relationships with trading partners not being about putting 'pins on a map' but creating actual success through the utilisation of trade deals”.
“In a message echoing ongoing emphases from the government on deeper partnership with industry, he addressed businesses in the room: 'Don't underestimate the scale of ambition that this government has for you.'
“One point I found particularly interesting was a comment around not waiting for crises in order to act with urgency on behalf of businesses. Instead, Kyle sees it as an imperative to act with urgency to support businesses on a constant basis. This parallels the Chartered Institute's own efforts in supporting opportunities on behalf of our members.”
UK services boost
The UK’s services sector has posted a strong PMI figure in the latest S&P data release, hitting 54 in January after a 51.4 result in December. The figure is the highest since August last year.
An increase in export orders played a role in the strong figure, S&P reported:
“Rising export orders supported overall new business gains in January. Although only modest, the rate of growth was the second-fastest since October 2024 (exceeded only by that seen last August).”
Several companies said they had seen growth in orders from Europe, particularly Ireland, though “uncertainty and intense competition” also featured in firms’ assessments of the trading environment.
Economics director at S&P Global Market Intelligence Tim Moore said several firms suggested “post-Budget clarity had contributed to a broader improvement in client confidence, while some also cited rising export sales”.
There were less positive signs for UK workers however, as a hiring slowdown continued in January as a result of “rising payroll costs”, while there was a “sharp increase” in input inflation.
Other stories in the headlines
- Senators in the US have introduced a bill that would mandate government licencing for firms advertising on social media in a bid to prevent scams
- South Korean trade envoy Yeo Han-koo said that it would not be necessary for the US to raise tariffs on his country’s goods, as it was working “faithfully and quickly” to implement provisions of a bilateral tariff deal agreed last year
- The government’s cost of borrowing is on the rise over speculation about prime minister Sir Keir Starmer’s leadership
Yesterday in trade
- The government is seeking feedback from those across the supply chain on the Border Target Operating Model (BTOM)
- Downing Street rejected overtures from the EU for a new customs union
- The EU is stepping up efforts to agree a trade deal with Australia
