‘UK can be major exports power’, says Fox
Government’s ambitions ahead of Brexit outlined
BRITAIN HAS the potential to be a “21st century exporting superpower”, Liam Fox will say today as he outlines the Government’s ambitions ahead of Brexit.
The International Trade Secretary will detail the Government’s desire to increase exports as a proportion of UK GDP to 35 per cent as it seeks to encourage more businesses to sell goods and services overseas.
It came as new data showed that UK household income growth has lagged behind its international peers for the last eight years.
Statistics released by the Organisation for Economic Co-operation and Development (OECD) think tank reveal the UK is the worst performer when tracking the lag between gross domestic product (GDP) growth and real household income per capita since 2010.
But official figures released in June showed exports of UK goods and services hit a record £620 billion last year, accounting for 30 per cent of UK GDP.
Mr Fox, in a speech to a business audience in London about the export strategy, is expected to say today: “UK businesses are superbly placed to capitalise on the rapid changes in the global economic environment and I believe the UK has the potential to be a 21st century exporting superpower.
“As an international economic department, we are determined to support, connect and grow UK companies on the world stage through our international network. As we leave the EU, we must set our sights high and that is just what this export strategy will help us achieve.”
Mike Cherry, Federation of Small Businesses national chairman, said the Government’s export strategy is “strong on aspiration” and welcomed the commitment to increase exports as a proportion of GDP and other measures which could support small firms.
He added: “Incentives like ex-
port vouchers and grants should be made available to small businesses to help them with upfront investment costs for things such as translation services or additional market research.
“An assessment of financial incentives, including export vouchers, as mentioned in the strategy, is a step in the right direction, but we are fast running out of time.
“The clock is ticking. If the Government doesn’t act quickly and introduce financial incentives there is a risk the current uncertainty will have a serious and detrimental impact on the growth of small businesses.”
CBI Director-General Carolyn Fairbairn said: “This strategy is a timely signal that the Government is committed to improving the United Kingdom’s international competitiveness.
“The CBI strongly supports the ambition to make exports 35 per cent of GDP, which will put the UK out in front of many of our international competitors.
“We estimate that in every region of the country there are around 10 per cent of businesses that could export, but don’t.”
DOWNING STREET last night refused to be drawn on reports suggesting it will give EU migrants living in Britain the right to remain if a “no deal” Brexit materialises.
Leaked Cabinet papers show ministers plan to take the “moral high ground” by unilaterally granting the 3.8 million EU nationals in the UK the right to stay, according to The Daily Telegraph.
However the move was also said to reflect concerns of potential labour shortages in key sectors of the economy once Britain is outside the EU.
The Telegraph said the details would be set out in one of around 80 technical notes due to be published by the Government, starting on Thursday, setting out its preparations for a no-deal break across a wide range of sectors.
It will mean EU citizens in the UK would be able to continue accessing the NHS and the benefits system, regardless of whether British nationals in the EU are granted reciprocal rights.
The leaked paper states: “The Home Office plans to make an offer to existing EU residents that they can remain in the UK in a ‘no deal’ scenario, in effect unilaterally implementing the (immigration element of the) Citizens’ Rights agreement agreed with the EU in December 2017. “The proposal is to make the offer irrespective of whether the EU reciprocates. “Any package would need resolution for the reciprocal elements of the December 2017 deal. “Making an offer is not only important to provide certainty publicly, but will enable the UK Government to take the moral high ground. “A number of other plans are also dependent on the Government’s position on this issue, relying heavily on the availability of existing labour in a ‘no deal’ scenario.”
The paper, which was said to have been given to ministers last month, describes the issue as “one of the most important aspects” of the Government’s nodeal planning.
A Downing Street spokeswoman declined to comment on leaked documents. But she told reporters at a regular Westminster briefing: “One of the priorities for us right from the get-go has been securing the rights of EU citizens living here. That’s why we moved swiftly to agree something with the EU early.”
The move was welcomed by Jacob Rees-Mogg, inset, the leader of the influential pro-Brexit European Research Group of Tory MPs.
“EU migrants came here legally, and the UK is not the sort of country that applies retrospective legislation.
“They should have broadly the same rights as British citizens, no better or worse,” he told the Telegraph. Conservative Peter Bone, the Brexit-backing MP for Wellingborough, said he did not expect the Government to shift from seeking reciprocal arrangements for Britons living in the EU.
He told the Press Association yesterday: “It seems most unlikely Theresa May would do such a deal as she has been very firm on this.”
Mr Bone said a “no-deal” Brexit would result in a trade agreement on World Trade Organisation terms and he expected other issues, including EU nationals and civil aviation, to be dealt with by a “series of agreements”.
Conservative former Brexit minister David Jones also told the
Telegraph: “It’s got to be reciprocal.”