The Government will today publish the response to the consultation on UK Export Finance’s (UKEF) Foreign Content policy. It sets out the approach UKEF will take to determine the level of non-UK goods, services and intangible assets in transaction supported by UKEF.
The purpose of the new approach is to ensure that UKEF’s support is flexible and meets the needs of UK exporters to help them win business overseas, fulfilling UKEF’s mission to ensure that no viable UK export fails for lack of finance or insurance from the private sector, while operating at no net cost to the taxpayer.
The consultation, published in April 2019, was part of UKEF’s commitment in the Government’s Export Strategy to review its products and policies to ensure they reflect the full breadth of its capability and the needs of business. The consultation received 28 responses, which were largely supportive of the approach proposed by Government in the consultation and reinforced the need for its foreign content policy to adapt to increasingly globalised supply chains.
The new policy ensures that UKEF will implement a principles-based approach to Foreign Content, recognising the full contribution of the UK supply chain. This approach will supplement UKEF’s current UK content requirement, making it easier for UKEF to consider support for scenarios which are outside of a specific export contract, but which nevertheless are conducive to supporting and developing UK exports.
This approach will broaden the availability of UKEF support for all sectors including those to which it has not traditionally provided support. To align with this expectation, UKEF will be updating its definitions to clarify UKEF’s ability to support intangible assets.
A copy of the consultation response will be placed in the libraries of the House.
This statement has also been made in the House of Lords