The recent restructuring of UK Trade and Investment (UKT&I) – coupled with planned Budget cuts by Her Majesty’s Treasury from April 2006 – will result in significant changes for security industry exporters
Security is deemed to be a ‘reactive sector’ by UKT&I. Budgetary cuts of 50% have resulted in UKT&I focusing on SMEs who are new to exports. Non-SMEs – or companies who achieve more than 10% of sales from proactive exporting – will no longer gain any support through the SESA scheme. The maximum grant for a single trip has been cut from £2,500 to possibly as low as £1,500 per company, while the lifetime limit of grant claims has dropped from 20 to three. However, the details still seem to be subject to change.
The role the BSIA has played in helping to develop UK exports has also altered as companies will have to make claims for support direct to their local Business Link. Consequently, a large percentage of UK concerns that populate the stands for British Pavilions at overseas exhibitions may no longer receive any financial assistance, and will have to deal directly with regional Business Links for funding allocations.
Exporting is a long-term investment for a company, both in terms of effort and finance. These changes from UKT&I will only make this harder. It is vital that the BSIA continues to lobby Government such that policy on this matter is reviewed.
One of the Export Council’s great strengths has been seen in networking between members. As export support for the security industry is decentralised, in turn this feature of the Export Council will assume an even more important role.
The Council must act as a Forum for both existing and new exporters so that they can discuss any available Government subsidies, and then organise cost-effective UK Pavilions at overseas trade shows and alternative overseas events (such as the tabletop exhibitions at British Embassies).
Source
SMT
Postscript
Michael Bystram is chairman of the BSIA’s Export Council
No comments yet