This week the CBI announced record high confidence for businesses who export, with 72% expecting an increase in turnover in the next quarter. This is crucial to the long-term economic plan as we seek to rebalance the economy and continue to provide new jobs in the growing economy.
The Government has set an ambitious target of exporting £1tn per year by 2020, compared to the current value of £498bn. We have already been able to treble exports to countries like China, Brazil and India. However our net exports still have a long way to go, with a number of challenges.
UK businesses have often held back from seeking to export, fearing the often complex and costly foreign markets. To assist this, the UK Government is now spending £420m through both the Foreign Office and the UK Trade & Investment (UKTI) to support UK business overseas, particularly targeting 20 key high-growth markets. Key to this is opening up our network of embassies across the world to champion and showcase UK work and products. UK business is utilising their local knowledge to help enter these respective markets. This is a complete cultural change for the Foreign Office which employs over 14,000 people in nearly 270 overseas posts. In a recent Public Accounts Report into this work, it is clear they are making positive steps, but much more needs to be done on training to increase their commercial awareness and sharing best practice on how they can champion UK business.
In the UK, we continue to support this rebalancing of the economy through a low, competitive tax regime, infrastructure investment and our key educational reforms to drive up the skills of our future workforce. We have already seen for the first time in 30 years a welcome increase in manufacturing and significant investment, both UK and foreign into high-tech industries ready to export.
Here in Swindon, Robert Buckland MP & I continue to support local businesses seeking to export. We have hosted events with the UKTI, banks, business mentors and met with numerous individual businesses. We also regularly meet with foreign representatives to help promote Swindon as an investment destination and to relay suggestions and concerns directly to the Government. This week for example we met with the Japanese trade ambassador to discuss ways we can further assist existing employers like Honda, crucial to our local economy. They spoke highly of the UK, of our culture, tax system, support for global trade and the success of the Olympics. This is why the UK is their 3rd largest destination of investment after the US and China.
There is much to do, but in an increasingly global economy it is absolutely right the UK seeks to take full advantage of the new emerging markets.
