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New export aid for SMEs

New ways to stimulate smaller firms and help them export more have been unveiled by Business Secretary Vince Cable, at a time when figures show a widening in the UK’s trade deficit in goods and services.

Mr Cable reportedly said the UK had “consumed too much and exported too little”.

Four new schemes would be created to help firms get access to credit and insure against risk, he said.

Some analysts said the trade figures cast doubt over whether exporters would be able to drive the UK recovery.

The Office for National Statistics had earlier said imports had increased following a rise in orders for aircraft, ahead of a change in VAT.

As a result, the trade deficit in goods and services - the difference between the UK’s exports and imports - grew to £4.831bn in December, its highest level since August 2005.

Meanwhile the Business Secretary said yesterday’s banking agreement was a good step forward for British business.

He added: “Banks have made a commitment, with independent monitoring, to increase credit to UK firms and especially to small and medium sixed enterprise.

“Tougher mandatory disclosure rules covering the top eight executives outside to the board will give the UK the most transparent financial regime in the world, while linking executive pay to lending gives businesses a crucial assurance that bank executives have a stake in the real economy.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .