The Parliamentary Under-Secretary of State for Foreign and Commonwealth Affairs (Mark Simmonds)
I join others in congratulating my hon. Friend the Member for Shrewsbury and Atcham (Daniel Kawczynski) on securing this important debate and putting on record his dedication not just to his constituency, but to driving the UK’s recovery by rebalancing the economy, based on export-driven recovery. He was absolutely right to highlight at the beginning of his speech the importance of the progress made since May 2010, with the refocusing of the Foreign Office on the prosperity agenda and the refocusing of the Department for Business, Innovation and Skills on the strategy of pursuing an export-led recovery.
My hon. Friend was also right to highlight some of the progress made in exporting expertise, particularly in responding to our hon. Friend the Member for Ceredigion (Mr Williams) about its importance in the education sector, and also in discussing other key areas. My hon. Friend the Member for Shrewsbury and Atcham was right to point out that the UK is highly regarded elsewhere in the world, not just in traditional Anglophone countries, but in the French-speaking world, in which I travel quite extensively given my additional and other responsibilities in Africa. He was also right to imply that more needs to be done. We certainly should not rest on our laurels, but ensure that we are maximising the opportunities for UK businesses elsewhere in the world.
The support provided to businesses by UKTI has created significant economic benefits since May 2010. Indeed, some £45.6 billion-worth of total additional sales have resulted from UKTI assistance. In 2011-12, UKTI support helped firms to create 36,400 jobs and secure a further 68,500 jobs. The role of UKTI is not just to maximise exports, for both large companies and SMEs in the UK, but to persuade foreign companies to invest here in the UK too. In that regard, the UK has benefited from 1,406 inward investment projects in 2011-12 in which UKTI has been involved, which have helped to create or safeguard more than 112,000 jobs in the UK. It is therefore fair to say that UKTI is making a significant contribution to driving the UK’s economic recovery.
I want to say a little about the background—the architecture—against which UKTI operates. In early 2011, the Government published the White Paper “Trade and Investment for Growth”, which outlined our commitment to an open trading system and to removing barriers and supporting UK firms that wished to export. The Government’s “Plan for Growth”, which was published at the time of the 2011 Budget, linked the policy objectives for greater global trade to our economic aim of providing a climate that would help businesses to grow and prosper. The key objective was to encourage investment in exports as a route to a more balanced economy.
Some of the issues that my hon. Friend has raised are particularly pertinent. It might help his constituents and others who are unaware of the opportunities that UKTI offers to know that those opportunities are posted on the UKTI website, and that companies can sign up to alerts for any opportunities that might be relevant to them. I would certainly be happy to provide him with details of how to access that information, which he can pass on to the relevant businesses in his constituency.
My hon. Friend also raised the important issue of the Prime Minister’s appointment of trade ambassadors. I can give him an assurance that all the trade ambassadors—not just my hon. Friend the Member for Gloucester (Richard Graham)—are very significantly engaged in the countries for which they are responsible. Many of them have already made visits, and many are planning—with the missions on the ground as well as with the Department for Business, Innovation and Skills—to lead trade delegations to those countries.
It is also important to put on record that the Government are seeking a transformation of the UK’s export and inward investment performance—so much so that, in November 2011, the Prime Minister and the relevant Minister, the excellent Lord Green, launched the national export challenge, to encourage more SMEs to export. As my hon. Friend rightly pointed out, in some markets, the UK is below the EU average percentage of exporting SMEs. We want to see it achieve at least that level, if not higher. To that end, the Prime Minister has set the extremely ambitious target of getting another 100,000 companies exporting by 2020 and doubling UK exports to £1 trillion.
However, UKTI cannot deliver the Government’s ambition to transform the UK’s export and inward investment performance alone. It is working in close co-operation with the rest of Government and particularly with the Department for Business, Innovation and Skills and the Foreign and Commonwealth Office. Outreach with business intermediaries such as banks, lawyers and accountants is also playing a major role. We aim to access their client bases to help businesses to expand into key markets.
My hon. Friend also raised the important subject of marketing. He will understand the very challenging—to put it politely—macro-economic situation that we inherited, and it was absolutely right that when we came into office, we looked at every aspect of Government expenditure to ensure that UK taxpayers’ money was being spent properly and that we could make a significant inroad into the huge deficit that we inherited. That does not mean, however, that we have been unable to persuade the Cabinet Office, which is the responsible Department, to put in place marketing budgets when and where appropriate. Perhaps the best example is the “Great” campaign, which was linked to the Olympics and to our Olympic legacy. I can inform the House that that campaign has had a significant positive impact, persuading businesses based abroad to invest here and enabling our missions abroad to persuade UK companies to invest elsewhere in the world.
Indeed, the House has played its part, too, with Members of Parliament hosting seminars in their constituencies to highlight the opportunities that exporting can offer businesses, especially to small and medium-sized enterprises. I am grateful to my hon. Friend the Member for Stourbridge (Margot James) who has played such a significant role in engaging and encouraging MPs across the House to hold such meetings in their constituencies. If Members either here this evening or reading the debate in Hansard tomorrow are interested, I would urge them to contact my hon. Friend who will provide them with the information necessary to enable them to hold such meetings in their constituencies.
That is not all. Last August, the Government announced additional support to help UK businesses. There will be more money available for SMEs to attend trade shows abroad, and I very much hope that the constituents of my hon. Friend the Member for Shrewsbury and Atcham will access this funding. There will also be increased support available for travel on overseas missions. Substantial discounts will be available and will be offered through the Overseas Market Introduction Service, which provides targeted research to help businesses find those first crucial contacts in the markets. In addition, the autumn statement provided a further resource allocation of £70 million a year for the next two years.
This package of support will play an important role in helping realise the Government’s ambitions, by building up the capacity and capability of the British Chambers of Commerce overseas, where we lag behind competitors such as the Germans. Lord Green has made this a personal crusade, and I am 100% supportive of the direction of travel. It is focused initially on 20 pilot chambers in key export markets. Once again, I very much hope that my hon. Friend’s constituents will engage with this excellent new initiative.
Increasing the number of international trade advisers in the English regions is a key part of how the money will be spent, offering additional funds to SMEs with high-growth potential, enabling more companies successfully to export. I can inform my hon. Friend that some of these advisers are private sector employees, who are performance-related rewarded—exactly the agenda he talked about—and I think that is exactly the right direction in which to go. We hope that this additional funding will double the number of companies given financial support towards the cost of exhibiting at their first overseas trade shows; and double the support for private sector-led project teams campaigning for UK success, by enhancing inward investment support in growth markets, such as the UAE, Qatar, Kuwait and Russia. I hope that some of that inward investment will end up in my hon. Friend’s constituency. This is also about positioning the UK as the leading location of choice for European headquarters and elite global enterprises, building on the success of Tech City and developing further inward investment campaigns as well as building on the Olympic legacy.
This has been an important debate. My hon. Friend is right to continue the work he is doing to raise the significance of the contribution that UK exports can make to our own UK economic recovery.
Question put and agreed to.