United Kingdom: Exports
Debate between Viscount Younger of Leckie and Lord McFall of Alcluith
Viscount Younger of Leckie
My noble friend is right that, through the efforts of UKTI, our focus goes very much beyond the eurozone and the European economy. Despite the tough conditions, UK exports to emerging economies have increased in recent years. It is very pleasing to note that, since 2010, UK exports to the Far East—to China—have increased by 52%, to India by 24% and to Brazil by 37%. However, there is still much more work to do.
Lord McFall of Alcluith (Lab)
My Lords, with 70% of all Scottish exports going to the rest of the United Kingdom and 600,000 jobs in Scotland depending on the link with the rest of the UK, not least 200,000 financial services sector jobs, what are the Government doing to inform people of this successful entity and to ensure the continuation of what has been the most successful currency union in the world for 300 years?
Viscount Younger of Leckie
I acknowledge what the noble Lord says. As he will be aware, the UK’s position is that Scotland is stronger in the UK and the UK is stronger with Scotland in it. As part of the UK, Scotland has a stronger place in the world and is a major player on the international stage. As the noble Lord alluded to, the rest of the UK is the primary destination for Scottish exports, accounting for around 70% of Scottish exports, worth around £48 billion in goods and services. Scotland as an export destination accounts for approximately 10% of exports from the rest of the UK.
Economy: Business Investment
Debate between Viscount Younger of Leckie and Lord McFall of Alcluith
Viscount Younger of Leckie
My noble friend is right. I am aware of this and the Government are working hard to increase trade in this area. My noble friend Lord Livingston recently headed up a successful trade mission to Colombia and Mexico, with some promising leads. I take this opportunity to congratulate my noble friend Lady Bonham-Carter on her excellent work as the Prime Minister’s trade envoy to Mexico. Exports of British goods to Mexico increased by 51% between 2009 and 2012.
Lord McFall of Alcluith (Lab)
My Lords, is the Minister aware that the banking system here is responsible for 80% of the loans to small businesses in this country, unlike in the US? This intermediation system is bursting. Until the Government look at the issue of capital and equity support for businesses, we ain’t going to regenerate this economy in all parts of the country.
Viscount Younger of Leckie
I am afraid I do not accept the negative attitude that comes from the noble Lord. In fact, much has been done to provide financial support for businesses. Over the last quarter of 2013, the banks lent an average of £4 billion each month to SMEs. In the same period in 2012, the average was £3.1 billion. Respondents to the Bank of England’s Credit Conditions Survey reported that the overall availability of credit to the corporate sector increased significantly in the final quarter of 2013.