David Cameron has issued a challenge to UK small businesses; for 100,000 to start exporting. According to the prime minister, if businesses accepted the challenge, the decision could clear the trade deficit. UK companies that export fall below the European average, but if the number increased overseas trading, the extra trade could add £30 billion to the trade receipts.
Grants from the Regional Growth Fund, worth a total of £95 million, will be allocated to small businesses that make investments. HSBC and Royal Bank of Scotland will hand out grants up to half a million pounds over the next two years, to purchase plant and machinery. Cameron also announced the extension of film tax relief to 2015.
The prime minister hopes that companies who export will increase from 20 percent of businesses to 25 percent, which could create 100,000 jobs and clear the trade debt. Estimates from the export promotion agency UKTI reveal 300,000 businesses deal in exportation, which is below the European average. As nearly 50 percent of UK exports are destined for the European Market which experts predict will have slower growth than other areas of the world which are developing, the UK businesses face a large challenge, which David Cameron acknowledges.
Cameron did point out the strengths and advantages of exporting which include concerns of the Bribery Act. Overseas markets can trade with the UK, knowing they are dealing with “clean business”. The Diamond Jubilee and the 2012 Olympics will also offer huge exposure to other markets, creating opportunities to increase exports.
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