Cabinet must lead drive to get Britain out of 'export slow lane', report says

http://www.theguardian.com/business/2015/jun/24/british-exports-government-reforms-graham-cole-report

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The government must do more to turn around Britain’s weak export performance, according to a new report calling for cabinet-led action to simplify support to businesses. The report, commissioned by the former shadow chancellor Ed Balls last year, said Britain risks staying in the “export slow lane” unless urgent changes are made to the way the government and business work together on winning and developing new overseas markets.

Led by Graham Cole, the chairman of helicopter maker AgustaWestland, the commission took evidence from thousands of companies to come up with an action plan to increase exports. Recommendations include reforms to government bodies dealing with exports, more focus on trade and investment in education, and a one-stop shop that simplifies export support for small and medium-sized businesses.

Cole said: “On exports, the clock is ticking and the world isn’t waiting. Business has told us what it wants, when it wants it and how it wants it. There must be a role reversal where government sees business as the customer. Leadership has to come from the top.”

He is urging the cabinet to set up a committee to push through the changes recommended in his report.

Chuka Umunna, who co-commissioned the report as the shadow business secretary, said it followed disappointing progress on growing Britain’s exports. He said: “Ministers said they would double exports to £1tn and get 100,000 more firms exporting by 2020, but government scheme after government scheme has failed to make a difference and Britain now has a record current account deficit.”

The report comes as the continuing Greek debt crisis raises fears for British exports, hit by the relative strength of the pound against the euro. A fall in export demand slowed the manufacturing sector’s recovery this month, according to the latest survey of the sector by the CBI.

Rain Newton-Smith, the director of economics at the business group, said manufacturing output and overall orders were better than average, but export demand was not picking up as hoped. She said: “Improving momentum in the eurozone is being offset by the effect of the strengthening pound on UK manufacturers’ overseas sales and margins. On top of that, the ongoing Greek saga is causing uncertainty.”