Question to the HM Treasury:

To ask Her Majesty’s Government what assessment they have made of the finding of the Office for Budget Responsibility that they will miss the target to increase exports to £1 trillion pounds by 2020 by £367 billion pounds.

World trade growth has been revised down by the Office for Budget Responsibility (OBR) in each year of the forecast from 2016. As a result, the OBR now expects a weaker outlook for UK export markets. As the UK is one of the most open economies in the world, external weakness, particularly in our biggest export markets in Europe, reduces demand for our exports. In addition the slowdown in world trade is expected to continue, resulting in the OBR forecasting a weaker outlook for UK export markets.

The £1 trillion figure was set to be ambitious, and it remains so. UK Trade and Investment (UKTI) has more than doubled the number of businesses it helps on an annual basis since 2010, supported by extra resources. However, given the scale of the export challenge it is essential that the broad range of relevant government activity works effectively for all companies across multiple sectors and markets. That is why the government, in its Productivity Plan, has pledged to mobilise the whole of government behind exporting, working alongside a more effective UKTI and better export finance.