Commenting on today’s announcement in the Budget that the government will double the amount of lending for exports to £3bn, whilst cutting interest rates on this lending by a third, Simon Collins, UK Chairman of KPMG, said: “Embedding sustainable growth in the UK economy is threatened by an over-reliance on UK consumption. We must do what we can to enable British business to tap into overseas markets through international corridors to high growth countries such as India and China."
The announced changes to air passenger duty and support for our regional airports will help but improving access to export finance will be fundamentally important. Many other countries, which the UK competes with for global trade, have far better export finance schemes, which put their local businesses at an advantage. The review of the Export Finance Scheme could lead to a sea change in the competitive position of the UK’s export finance; allowing UK businesses to win a larger market share as a direct result.”
Jeremy Barker, corporate finance director, added: “Today’s announcement has the potential to close the international competitive gap by overhauling the existing system, which is, in its current state, an option of last resort. This review could fundamentally change the status quo, making it more attractive to arrangers of finance and, most importantly, making it readily available for UK exporters of all sizes who would like to offer overseas buyers more competitive payment terms.”
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For further information please contact:
Katy Broomhead, KPMG Corporate Communications
M: 07824 537963
KPMG Press office: +44 (0)207 694 8773
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Chancellor’s Budget 2014
KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with approximately 11,500 partners and staff. The UK firm recorded a turnover of £1.8 billion in the year ended September 2013. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 155 countries and has 155,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.
This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.