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The Sponsors Alliance position on the future of Export promotion, Executive summary

UK Trade & Investment's infrastructure is not viable in the present economic climate. UKTI's structure is burdened by staff, overheads and administrative costs, which make up 75% of its annual budget.

In the current recession the UK needs a significant injection of government investment to boost exports and encourage UK companies to increase their international sales efforts. These resources should be targeted towards business schemes which directly help UK exporters enter overseas markets, and on schemes which bring the largest financial return on investment for exporters and the UK.

UKTI must reduce its operating costs, by:-

reducing staff and administrative budgets.
eliminating regional networks.
reducing its marketing activities.
reducing inward investment activities.

The resulting savings should be channelled into programmes which directly benefit UK exporters.

UKTI can reduce the cost of delivering business schemes by working with not-for-profit industry intermediaries, such as trade associations and chambers of commerce. Both parties can leverage existing services and activities, creating greater efficiencies.

Opportunities exist for industry associations to play a greater role on behalf of UKTI in delivering overseas market information services, providing advice and mentoring.

If you support the Sponsors Alliance position and wish to comment, please email the the Sponsors Alliance using the form below:-

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UKTI

UK exporters in most industry sectors find exhibiting at overseas exhibitions one of the prime ways to improve their exports.
The Government has continually said that manufacturing and exporting will help lead us out of the current economic downturn.
So at a time when it may seem to make more sense to help UK exporters (and reduce the national debt) the UK's trade and investment body, UKTI, part of BIS is reducing its budget for International Exhibition Support Schemes (TAP). Funding for the widely aclaimed (by industry) scheme has falen from £20 million in 2004/05 to around £6 million across ALL industry sectors in the UK.

In contrast our EU competitors plough more than ever in to supporting their exporters at overseas exhibitions. Germany has budgeted around 46 million Euros for 2012/13

Another significant change has seen the commercial officers located at UK Embassies and Consulates around the world also charge for their services in helping companies with market information. In the past it was easy to at least talk to the officers - now they are mostly interested in selling to you.

The amount of supported offered, to those companies who qualify, is now so small that it does little to help with the overall cost of exhibiting overseas.

The Sponsors Alliance believes if the Government really wants to improve exports, rather than just talking about it, then it should put more financial support in to its Tradeshow Access Program.


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