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Prime ministers

UK Government Sets New £1 Trillion Export Target by 2030 Amid Brexit Challenges

Strategic Insights

— 2 min read

British Prime Minister Boris Johnson is set to unveil a revamped export strategy, including a £1 trillion target for 2030, marking a significant shift in the country's post-Brexit trade approach. The announcement comes as part of a broader effort to demonstrate the benefits of the UK's departure from the EU, with the government facing pressure to address concerns from businesses about the costs and bureaucracy of exporting to new markets. The new strategy aims to support British companies, particularly small businesses, in accessing new markets and opportunities, with initiatives including export-linked loans, expertise, and advice.

Key Takeaways:

  • The UK government is setting a new £1 trillion export target for 2030, which was missed by the previous Conservative government by 2020.
  • The target is part of Prime Minister Boris Johnson's plan to overhaul Britain's post-Brexit export strategy, which aims to boost overseas trade and provide financial support to small businesses.
  • The "made in UK, sold to the world" campaign will be launched alongside various initiatives to boost overseas trade, including export-linked loans and access to expertise and advice.
  • Only about 10% of British companies currently sell overseas, supporting 6.5 million jobs in the UK.
  • The UK only managed to increase overseas sales to £689 billion by 2019, before the coronavirus pandemic hit.
  • Changes to the export development guarantee will allow the UK Export Finance agency to back larger working capital loans for foreign or domestic companies that want to start exporting from the UK.
  • UKEF will also double the repayment period from five to 10 years for "green" exporters, to boost the UK's low-carbon economy and encourage rapid export growth.

Statistics:

  • £1 trillion: The new export target for 2030.
  • 10%: The percentage of British companies selling overseas.
  • 6.5 million: The number of jobs in the UK supported by overseas trade.
  • £689 billion: The increase in overseas sales by 2019.
  • 5%: The increase in UK exports in 2019.
  • £1 trillion: The original export target set by former prime minister David Cameron in 2012, which was also in the 2015 Conservative manifesto.

Sources:

  • "Ministers will this week announce a new PS1tn-a-year export target for the UK by 2030... The restated overseas sales target is part of prime minister Boris Johnson's plan to overhaul Britain's post-Brexit export strategy..." (The Times)
  • "Only about 10 per cent of British companies currently sell overseas, supporting 6.5m jobs in the UK." (UK trade official)
  • "By increasing exports this is going to help Britain level up," (UK trade official)
  • "According to the Office for National Statistics, 2019 was a record year for UK exports, with goods and services exports up 5 per cent on 2018 levels." (The Times)
  • "Emily Thornberry, shadow trade secretary, had urged the government to return to the PS1tn export target at the Labour party conference in September." (The Times)
  • "Mending our trade with Europe must be the priority... That target cannot be achieved unless the government gets its head out of the sand, fixes the holes in their botched Brexit deal and helps our exporters recover their trade with the UK's biggest market." (Emily Thornberry, Labour)

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