Category: Gov Press Releases

• Liam Fox sets out ambitious new plan to make Britain a 21st century exporting superpower
• Government sets new ambition to increase exports as a proportion of UK GDP to 35%
• A government-led collaboration with business developed after extensive engagement with range of UK businesses
• Streamlined and targeted offer for businesses of all sizes, set to raise productivity, boost wages and protect employment across the UK
• Strategy set to help Wales become a world-leading export nation

International Trade Secretary Dr Liam Fox MP, will today (Tuesday 21 August) set out how the Government will make Britain a 21st century exporting superpower through better use of our overseas network, new online tools and building an extensive business to business network.

This comes as the Government continues to roll out sector deals as part of the Industrial Strategy, boosting jobs and growth in the areas where the UK has a competitive edge – now supporting the export of this expertise across the world.

Research shows that companies that export have increased growth potential, are more productive and have better paid jobs.

Last year £620bn of goods and services exported by British companies accounted for 30% of our GDP, with UK exports are at a record high.

This includes £16.4bn of goods exports from Wales, a 7.1% rise on the previous year.

However, the Department for International Trade estimates that 400,000 businesses believe they could export but don’t, while demand for British expertise and goods overseas is only growing.

Dr Fox, joined by Baroness Fairhead, Minister of State for Trade and Export Promotion, will today set out the government’s long-term ambition to go further and increase total exports as a proportion of GDP to 35%.

Baroness Fairhead will also visit Cardiff-based Cloth Cat Animation, whose children’s television programmes have enjoyed great success in China and Australia.

Responding to a call from business, The Export Strategy outlines how the government will produce smarter and more tailored support to UK companies. There are key elements to the strategy to support companies selling overseas:

• Encourage and inspire more businesses to export.
  This includes an increased focus on amplifying the voice of existing exporters to inspire other businesses and facilitating peer-to-peer learning.
• Inform businesses by providing information, advice and practical assistance on exporting.
  New measures include developing great.gov.uk into a single digital platform for both domestic business growth and export support and working with large companies to help build the capability of UK supply chains. We will also assess financial incentives and signposting as a means to support SMEs access new markets and private sector export support.
• Connect UK businesses to overseas buyers, markets and each other.
  New measures include support for businesses looking to invest overseas and developing an online tool enabling businesses to submit non-tariff barriers they face.
• Put finance at the heart of our offer.

Deploying an awareness campaign to target UK exporters most likely to benefit from up to £50bn worth of export finance and insurance support from UKEF, and promoting UKEF support in overseas markets to help UK companies and consortia win contracts.

In a speech to a business audience in London, International Trade Secretary, Dr Liam Fox MP is expected to say:

The United Kingdom is a great exporting nation and our exporters lead the way, in creating jobs, raising wages and growing our economy.

UK businesses are superbly placed to capitalise on the rapid changes in the global economic environment and I believe the UK has the potential to be a 21st century exporting superpower.

As an international economic department, we are determined to support, connect and grow UK companies on the world stage through our international network.

As we leave the EU, we must set our sights high and that is just what this Export Strategy will help us achieve.

Baroness Fairhead, Minister of State for Trade and Export Promotion at the Department of International Trade, said:

Since its creation two years ago, DIT has already helped thousands of UK companies to export – with exports now at a record high.

As the world’s sixth largest exporter, we do punch above our weight, however, we also punch below our potential. This Export Strategy sets out to change that and to increase exports as a proportion of GDP from 30% to 35%, taking us from the middle of the G7 to near the top. This is ambitious, but achievable.

This strategy builds on the UK Industrial Strategy and our existing export support services – our network of trade advisers and promoters across the UK and in 108 countries worldwide, UKEF’s £50 billion capacity to support exports in 60 currencies, and our great.gov.uk service. To achieve our aim, Government must join up across departments to enable UK companies to succeed overseas.

This strategy is a first step – a foundation – for a new national drive to export.

Secretary of State for Wales Alun Cairns said:

Wales is home to a whole host of successful exporting companies, whose products and services are being sold around the world. Cloth Cat Animation is no exception, their work has been watched on networks around the globe including in China and Australia.

This Export Strategy aims to guide and inspire other Welsh companies looking to make their mark in international markets. Through the creation of Export Champions across the UK and unrivalled access to overseas trade specialists in 108 countries, our goal is to maximise Wales’ potential as a world-leading export nation, removing the market access barriers faced by businesses to create better, higher paid jobs across the country.

Carolyn Fairbairn, CBI Director-General, said:

Expanding trade is fundamental to creating new jobs, raising productivity and increasing prosperity across the country. This strategy is a timely signal that the Government is committed to improving the United Kingdom’s international competitiveness.

The CBI strongly supports the ambition to make exports 35% of GDP, which will put the UK out in front of many of our international competitors. We estimate that in every region of the country there are around 10% of businesses that could export, but don’t, and we look forward to working alongside the Government to support and inspire them to seize the opportunity.

The CBI has consistently called for a long-term approach to exports. Previous strategies have come and gone, but businesses have been let down by their execution. Firms will work with the strong team in place at the Department for International Trade to ensure these plans are now rigorously carried out.

Dr Adam Marshall, Director General of the British Chambers of Commerce (BCC), said:

Dialing up the intensity of UK trade – both close to home and further afield – will be the cornerstone of our future economic success.

Working together, business and government have a real opportunity to turbo-charge UK exports, and help more of our firms increase sales and profits in markets all across the world. Our biggest competitors invest heavily in promoting their countries’ products and services, and the UK must match or exceed them.

We welcome the UK Government’s pledge in the new Export Strategy to work hand-in-hand with business to unlock opportunities for UK firms all across the globe. A clear, long-term commitment to support British firms on the ground – both here at home and overseas – is needed to provide a springboard for many companies to take risks and go for growth.

Stephen Martin, Director General of the Institute of Directors, said:

Maximising trade opportunities across the globe will be key to the UK’s future economic success, so we welcome this new export strategy, which provides a solid foundation upon which to build. The Government deserves credit for investing time and effort in working with business to draw up this strategy, and we are delighted that a number of the IoD’s recommendations have been incorporated.

Improving the UK’s export performance will depend upon many variables, but the good news is that there is plenty that can be done now to help businesses, irrespective of Brexit. We will be encouraging our members to engage with government to make sure this strategy really takes off and enables British firms to realise their full trading potential.

The Government’s new network of HM Trade Commissioners will help improve government-to-government relationships to reduce tariff and market access barriers as we leave the EU.

In a series of high-profile appointments by the department, earlier this year DIT appointed former Barclays head of corporate banking John Mahon as the UKs first Director General for Exports, to lead the implementation of the Strategy.

And former Citgroup banking vice-chairman Mark Slaughter was appointed in June as Director General for Investment, to lead a drive to attract more investment into the UK.

The strategy builds on an already strong DIT offer to businesses which includes 250 International Trade Advisors around the UK, showcased export opportunities on GREAT.gov.uk and UKEF support such as trade finance.

ENDS

Further information:

• Latest ONS figures showing UK exports to the world rose by £26bn, an increase of 4.4% compared to the same time last year.
• At the heart of the campaign are its ‘Export Champions’; everyday businesses of all shapes and sizes from around the UK that are proudly exporting. They form a nationwide network of UK companies that are ambassadors for international trade. They share their success stories, offer practical advice and lead by example, under the rallying call ‘If We Can, You Can’

Proposals for a North Wales Growth Deal must now gather momentum as it heads into the final stages of negotiations, UK Government in Wales Minister Mims Davies will say today as she kicks off a two-day visit to the region (21-22 August).

Undertaking her first official engagements in Wales, Mims Davies will underline the UK Government’s vision for North Wales and bring new energy to the North Wales Growth Deal.

The North Wales Growth Deal is a UK Government manifesto commitment, setting out an ambitious vision for the region for the next 15 years.

Minister Davies will begin her programme with a meeting with the Chair of the North Wales Growth Board Cllr. Aaron Shotton, and Vice Chairman Cllr Dyfrig Siencyn at OpTIC Glyndwr in St Asaph.

She will also meet with each of the individual council leaders involved in bringing the deal to life where she will issue a rallying call to ensure every sinew of strength is being thrown behind the effort to develop strong and innovative business cases that will get the deal over the line.

Speaking ahead of the visit, Minister Davies said:

Growth deals, like the one we are driving forward in North Wales can produce real, tangible results such as jobs, investment in transport and bringing business and local authorities together.

Over the coming days, weeks and months, I am looking forward to meeting the deal makers, the innovators, the business leaders of this region who will be central to making this deal a success.

The prizes that await for North Wales could be transformational. Now is the time to come together for a final push on a proposal that is underwritten by expertise and local knowledge and ensure we get this deal off the drawing board and over the finishing line.

Cllr Aaron Shotton, Chair of the North Wales Economic Ambition Board and Leader of Flintshire County Council said:

We are looking forward to meeting with the Minister to discuss the progress we have made in developing a bid that will deliver on key themes across the region.

The focus now must be on collaboration and prioritising the most crucial programmes that will impact on our communities and boost the North Wales economy, with a focus on digital connectivity, job creation and transport links.

We would like to thank her in advance for supporting the Ambition Board and for taking the time to witness first-hand the hard work that’s gone in to putting together a bid that will benefit the economy and residents of North Wales. Our immediate focus is to ensure that a Growth Bid for North Wales is a key feature in the upcoming Autumn Budget, which will ultimately shape the growing and dynamic region that we are all striving for.

The Minister will also highlight the region’s growing reputation as the go-to destination for thrill-seeking tourists with a visit to Surf Snowdonia.

The attraction has this year unveiled plans for a multimillion-pound expansion which includes the addition of a four-star hotel with spa and conference and wedding facilities. A new indoor adventure attraction is also envisaged.

Here, the Minister will host a meeting of small businesses from the region to hear their views on how the UK Government can support their own growth potential and compete in the global economy.

Justin Everley, commercial director at Surf Snowdonia said:

It’s an absolute pleasure for us to welcome the Minister to Surf Snowdonia during her visit to North Wales. We’re looking forward to introducing her to our employees and sharing our story so far – and we’re excited to be able to share our development plans which will allow us to grow and evolve our business in 2019 and beyond.

ENDS

The Scottish Secretary David Mundell will be joined by other UK Government cabinet ministers in Edinburgh this week in a show of support for Scottish festivals and to celebrate the international profile and significant economic boost they bring.

Latest figures show that Edinburgh’s festivals as a whole contribute £313 million to the Scottish economy.

The Scottish Secretary will today (Monday August 20) host a reception to thank organisers for their efforts and will be attending performances across festivals this week.

Scottish Secretary David Mundell said:

Scotland’s festivals are of immense importance to the UK and internationally. Running not only in August but throughout the year they are a hotbed of home-grown and international talent spanning so many disciplines.

The Edinburgh festivals are a phenomenon which contribute so much to the economy as both significant employers and tourist attractions. Their excellence makes them of worldwide significance and embodiments of what Scotland has to offer on a global stage and the UK Government looks forward to the festivals going from strength to strength for future generations to enjoy.

Earlier this month, the UK Government announced £100,000 in funding for this year’s Edinburgh Festival Fringe to help it deliver a step change in showcasing emerging artistic talent to the world. The UK Government has a commitment to promote Britain on a global stage and Scotland’s festivals exemplify this.

Edinburgh is the home to 12 iconic festivals and the season goes well beyond August, encompassing the likes of Edinburgh’s Hogmanay and the Edinburgh International Science Festival.

Key organisers of Scotland’s festivals have been invited to the annual Office for the Secretary of State for Scotland Festivals Reception today. Hosted by the Scottish Secretary, the event celebrates the important role the festivals play in Scotland’s economy and their cultural contribution to the UK.

The reception will include a performance by Circus Abyssinia from Ethiopia. Featuring the Konjowoch Troupe, their show “Ethiopian Dreams” is a retelling of the cast’s own journey towards founding a circus in the country. Showcasing exciting stunts and circus skills, the performance tells the story of brothers Bibi and Bichu joining the circus.

Tomorrow (Tuesday August 21) Mr Mundell will see the “Sowhereto Africa” performance at the Edinburgh Festival Fringe followed by visits to Edinburgh Art Festival and Edinburgh International Festival. Finally, Mr Mundell will visit Army @ The Fringe to see “The Troth Akademi”, a story of how Indian men fought for the Allies in World War One.

Neil Avery Hughes (51), from Water Orton, Birmingham, was a director of Contact Transport Limited (Contact Transport). Incorporated in February 1980, the company traded from premises in Garrets Green and provided haulage and parcel delivery services.

In 2011, Contact Transport was acquired by another company, Keelek 369 Limited, before it entered into a Company Voluntary Arrangement (CVA) in the same year to help manage its debts, which completed in July 2015.

While the company returned to profit between 2012 and 2014, Contact Transport entered into a difficult trading period and fell behind in repaying its debts to their creditors.

As a result, a winding up petition was filed against Contact Transport in March 2017 before the company became insolvent, with administrators appointed in April 2017.

Further investigations found that Contact Transport had entered into an Invoice Discounting Agreement (IDA) with an external lender, allowing the company to get advances on cash they were owed from customers rather than waiting for them to pay.

But during an audit in April 2017 the lender became aware of discrepancies between what Contact Transport had claimed and what they were actually owed from their clients.

Investigators found that Neil Hughes caused Contact Transport to claim funds for work that were higher in value than the work completed. This resulted in the company securing increased levels of funding and cash flow to the value of just over £1 million.

Neil Hughes resigned as a director of Contact Transport in June 2018 before he provided a disqualification undertaking to the Secretary of State on 25 July 2018 where he did not dispute he falsified claims to the lender.

Effective from 15 August 2018, Neil Hughes is now banned for 9 years from directly or indirectly becoming involved, without the permission of the court, in the promotion, formation or management of a company.

Martin Gitner, Deputy Head of Insolvent Investigations for the Insolvency Service, said:

Securing advanced payments is a legitimate method of sourcing working capital finance. However, Neil Hughes submitted false documents to wrongfully and deceptively claim more money than was actually owed to Contact Transport.

9 years is a significant ban and this should serve as a warning to other directors that the Insolvency Service has strong enforcement powers to remove dishonest or reckless directors from operating a business for a considerable amount of time.

Notes to editors

Mr Neil Avery Hughes was director of Contact Transport Limited (Company no. 01478943).

In his disqualification undertaking, Neil Hughes did not dispute that:

• between at least November 2016 and April 2017, I caused Contact Transport Limited to notify the company with which it operated a confidential invoice discount facility of invoice values which were of higher value than the work actually completed during that period
• as a result Contact Transport had access to funds of at least £1,030,115 to which it was not entitled. This resulted in a loss of at least £1,030,155 to the invoice discount facility provider

A disqualification order has the effect that without specific permission of a court, a person with a disqualification cannot:

• act as a director of a company
• take part, directly or indirectly, in the promotion, formation or management of a company or limited liability partnership
• be a receiver of a company’s property

Disqualification undertakings are the administrative equivalent of a disqualification order but do not involve court proceedings. Persons subject to a disqualification order are bound by a range of other restrictions.

The Insolvency Service administers the insolvency regime, investigating all compulsory liquidations and individual insolvencies (bankruptcies) through the Official Receiver to establish why they became insolvent. It may also use powers under the Companies Act 1985 to conduct confidential fact-finding investigations into the activities of live limited companies in the UK. In addition, the agency authorises and regulates the insolvency profession, deals with disqualification of directors in corporate failures, assesses and pays statutory entitlement to redundancy payments when an employer cannot or will not pay employees, provides banking and investment services for bankruptcy and liquidation estate funds and advises ministers and other government departments on insolvency law and practice.

Further information about the work of the Insolvency Service, and how to complain about financial misconduct, is available.

Contact Press Office

Media enquiries for this press release – 020 7674 6910 or 020 7596 6187

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• New research shows a £9 billion increase for local businesses, delivering a welcome boost to the UK economy and creating new jobs
• Government rollout of superfast broadband has now reached almost 5 million homes and businesses who would otherwise have missed out
• Suppliers will now return more than half a billion pounds for reinvestment in extending rollout to the rest of the UK, due to high take up rate
• In Wales, the current coverage level is at 94.7%, with 700,364 Welsh homes and businesses now able to get a superfast broadband service as a result of the Government’s rollout
• The figures also show a 42.51% take up rate of superfast broadband in areas reached by the Government’s rollout in Wales

Local businesses in areas covered by the Government’s rollout of superfast broadband have seen a combined £9 billion increase in turnover since the boost to their broadband speed, new figures have revealed.

The “The Evaluation of the Economic Impact and Public Value of the Superfast Broadband Programme” is an independent assessment of the impact the rollout has had in its first years (2012-2016). Key findings from the report include:

• £9 billion surge in turnover for businesses benefitting from the faster connections now available
• £690 million net increase in Gross Value Added to the UK economy
• A reduction of almost 9000 individuals claiming jobseekers allowance, as well as a reduction in long term claimants by 2,500 in programme areas, accompanied by the creation of 49,000 local jobs.
• Programme has delivered £12.28 benefit for businesses for every £1 invested by the Government and local authorities
• Strong indication that high take up rates of Government’s superfast programme have encouraged telecommunications industry to expand their own commercial broadband projects.

Secretary of State for Wales Alun Cairns said:

The UK Government is delivering on its promise to speed up service for thousands of residents and businesses across Wales. While it is often challenging to reach some of the most rural parts of the country, today’s figures demonstrate a real increase in service coverage, which together with the Universal Service Commitment by 2020 will ensure residents can legally expect a minimum level of service from their providers, wherever they are in Wales.

By making sure everyone has access to reliable, high speed broadband we can not only support our rural communities and businesses in Wales, but also provide a boost for the rapidly expanding digital sector, which is quickly becoming a central part of the Welsh economy.

Minister for Digital, Margot James said:

Our rollout of superfast broadband across the UK has been the most challenging infrastructure project in a generation but is one of our greatest successes. We are reaching thousands more homes and businesses every week, that can now reap the clear and tangible benefits that superfast broadband provides. We are helping to ensure the downfall of the digital divide.

New figures out today also show that around 5 million homes and businesses who would have been stuck in the digital slow lane now have access to superfast broadband. The Government’s rollout of superfast broadband to those areas deemed “commercially un-viable” has helped take nationwide coverage to 95.39%.

Take-up of the new technology in areas benefiting from the Government programme is now running at 45% – more than double the expected rate. As a result of the contracts put in place by Government, those companies rolling out superfast broadband will now return more than £500 million in subsidies to the public purse to be used to reach those locations not yet covered by existing plans.

It is estimated that more than 1 million extra UK homes and businesses will gain access to superfast speeds, taking superfast coverage to 98% of the nation over the next few years.

Government is introducing a Universal Service Obligation that will mean everyone in the UK has access to fast and affordable broadband by 2020, and has recently set out plans to deliver nationwide gigabit capable (1000Mbps) connectivity by 2033 as part of its modern industrial strategy.

Openreach CEO Clive Selley, said:

It is great to see businesses across the UK reaping the benefits of faster broadband speeds and I’m proud of the leading role that Openreach has played in helping to deliver the Government’s rollout of superfast broadband – one of Britain’s great engineering achievements. We’ve also recently introduced a raft of lower wholesale prices to help drive higher take-up of faster fibre services which will help to further fuel the boost to the UK economy.

The Government’s rollout of superfast technology is an important part of the ongoing digital transformation work designed to make it quicker and easier for citizens to interact with Government online.

ENDS

The Ministry of Justice (MoJ) has today (20 August) taken over the running of HMP Birmingham for an initial six-month period at no additional cost to the taxpayer.

This follows an extended period during which HM Prison and Probation Service (HMPPS) has worked with the operator, G4S, in an attempt to drive up standards at the prison amid serious concerns over safety, security and decency.

It is clear, however, that without additional support the prison will not be able to make sufficient progress on these pressing issues which have again been highlighted following the recent HMIP inspection. G4S accept that this is the case.

From today, the running of the establishment will be taken over by HMPPS in accordance with the Criminal Justice Act 1991 and as part of the contract with G4S. However, HMPPS will work closely with G4S to ensure minimal disruption and to reassure staff of our mutual commitment to stabilising the prison and putting it on a sustainable footing.

The immediate steps that will be taken include:

• putting in place one of the prison service’s best governors to lead the prison, as well as a strong senior management team
• allocating experienced HMPPS officers to bolster existing staffing at the prison; an initial 30 extra officers will be deployed
• reducing the prison’s capacity by 300 places while improvement action is underway

While HMPPS will run Birmingham for an initial six-month period, this may be extended and the prison will not be handed back until ministers are satisfied that sufficient progress has been made.

Justice Secretary David Gauke and the Prisons Minister have recently visited the prison and concluded that ‘stepping in’ is the best way to make immediate impact and begin the necessary improvements.

Prisons Minister Rory Stewart said:

What we have seen at Birmingham is unacceptable and it has become clear that drastic action is required to bring about the improvements we require.

This ‘step in’ means that we can provide additional resources to the prison while insulating the taxpayer from the inevitable cost this entails.

We have good, privately-run prisons across the country and while Birmingham faces its own particular set of challenges, I am absolutely clear that it must start to live up to the standards seen elsewhere.

Local businesses in areas covered by the Government’s rollout of superfast broadband have seen a combined £9 billion increase in turnover since the boost to their broadband speed, new figures have revealed.

“The Evaluation of the Economic Impact and Public Value of the Superfast Broadband Programme” is an independent assessment of the impact the rollout has had in its first years (2012-2016). Key findings from the report include:

• £9 billion surge in turnover for businesses benefitting from the faster connections now available
• £690 million net increase in Gross Value Added to the UK economy
• A reduction of almost 9000 individuals claiming jobseekers allowance, as well as a reduction in long term claimants by 2,500 in programme areas, accompanied by the creation of 49,000 local jobs
• Programme has delivered £12.28 benefit for businesses for every £1 invested by the Government and local authorities
• Strong indication that high take up rates of Government’s superfast programme have encouraged telecommunications industry to expand their own commercial broadband projects.

Minister for Digital, Margot James said:

Our rollout of superfast broadband across the UK has been the most challenging infrastructure project in a generation but is one of our greatest successes. We are reaching thousands more homes and businesses every week, that can now reap the clear and tangible benefits that superfast broadband provides. We are helping to ensure the downfall of the digital divide.

New figures out today also show that around 5 million homes and businesses who would have been stuck in the digital slow lane now have access to superfast broadband. The Government’s rollout of superfast broadband to those areas deemed “commercially un-viable” has helped take nationwide coverage to 95.39%.

Take-up of the new technology in areas benefiting from the Government programme is now running at 45% – more than double the expected rate. As a result of the contracts put in place by Government, those companies rolling out superfast broadband will now return more than £500 million in subsidies to the public purse to be used to reach those locations not yet covered by existing plans.

It is estimated that more than 1 million extra UK homes and businesses will gain access to superfast speeds, taking superfast coverage to 98% of the nation over the next few years.

Government is introducing a Universal Service Obligation that will mean everyone in the UK has access to fast and affordable broadband by 2020, and has recently set out plans to deliver nationwide gigabit capable (1000Mbps) connectivity by 2033 as part of its modern industrial strategy.

Openreach CEO Clive Selley, said:

It is great to see businesses across the UK reaping the benefits of faster broadband speeds and I’m proud of the leading role that Openreach has played in helping to deliver the Government’s rollout of superfast broadband – one of Britain’s great engineering achievements. We’ve also recently introduced a raft of lower wholesale prices to help drive higher take-up of faster fibre services which will help to further fuel the boost to the UK economy.

The Government’s rollout of superfast technology is an important part of the ongoing digital transformation work designed to make it quicker and easier for citizens to interact with Government online.

NOTES TO EDITORS

1. The #SmarterGov campaign has been launched to drive innovation, savings and public service improvement across the public sector.
2. Superfast connections of 24Mbps and above allow families to watch TV on multiple devices at the same time, or let children do homework while parents do online banking and shopping. The technology is ideal for many small businesses too, allowing bosses to run websites and buy and sell online.