UK200Group comments on news that Britain could achieve £1tn of exports by the end of the decade
A member of the UK200Group of independent accountancy and law firms has today commented on news that David Cameron is being urged to do more to help the country achieve £1tn worth of UK exports by the end of the decade.
The Cole Commission has recommended that the prime minister establishes a new committee and encourage greater collaboration between key trade bodies to boost Britain’s international commerce. It suggested that UK Trade and Investment and UK Export Finance be brought closer together in order to create a more ‘joined up’ approach to Britain’s overseas trade effort. The report also recommends the establishment of a ‘One Stop Shop’ network globally to support British business overseas and help exporters to compete more effectively with China, Germany and emerging market manufacturers. In addition, the Cole Commission has recommended that an “implementation panel” be set up to ensure that key recommendations are delivered. These include the provision that SMEs are involved in all Government procurement contracts which may lead to further export sales.
Duncan Montgomery, tax partner at UK200Group member firm Whittingham Riddell LLP, said: “UK exports from SMEs could certainly do with a shot in the arm – a committee makes me nervous; often local help in getting access to market, or exhibitions and trade fairs are the strongest way forward. Support and information on a sector level would be more appropriate than high level generalities. Growth accelerator programmes have often worked well but the right deliverer can make a big difference to the outcome. Busy SMEs have little time to try for exports first time round; getting them over that hurdle is key.
“A proper export incentive system for tax would be a significant step forward. You only have to look at the success of the US system which has been called DISC, FSC, and then ETI. Ironically, the EU and us objected before the WTO as it was so effective in promoting US exports. A fiendishly complex tax incentive that made significant benefits for heavy US exporters and encouraged exports worldwide. We should do the same.”
