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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

At a time when it may seem to make more sense to help UK exporters (and reduce the national debt) UKTI's budget for International Exhibition Support Schemes has been reduced from £20 million in 2004/05 to about £8 million across ALL industry sectors in the UK.

In contrast UKTI has seen its budget increase. This increase has been used to "build capacity" and improve the marketing of "Brand Britain".

Part of that process now sees UKTI employ nearly 400 regionally based International Trade Advisors. Because these sector specialist cannot offer support to companies outside their region their expertise is greatly wasted and much duplication takes place.

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.

While the recent changes to eligibility may help some companies in 2009/10, the amount of grant offered is so small now, that it does little to help with the overall cost of exhibiting overseas.


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