Our country is already an exporting power.

We’re pretty good at it! Last year our exports grew over 10% that makes us more than 30% of the economy comes from exports but as the Secretary of State said that still leaves us in the middle of the G7 pack – and just to put it in context if you look at Germany, less than 20 years ago, Germany had exports as a percentage of GDP at 30%. Today it is 47%.

Our ambition is to move the UK nearer the top – and the first step is to get to 35% of GDP.

As the Secretary of State has said, rather than being an exporting power, we aim to be an exporting superpower!

And that’s why we’re launching this Export Strategy today.

Some government strategies are about solving problems – social or economic. Some are about mitigating risks.

This I am pleased to say, is about building on our strengths and rising to the challenge, and rising together.

We do have some awesome businesses in this country. The world has shown that it is ready for our goods and services.

We now have an Industrial Strategy, and I’ve seen it on the ground – these sector deals are really resonating, not just in the UK but they are resonating in overseas markets where the focus on particular sectors is really starting to be noticed.

So we see it as my department being the international wing of that industrial strategy.

We have so much potential.

But I think what it needs is businesses and government across government, private sector providers, all working together, adopting a collaborative approach, that the Secretary of State mentioned, and I think if we do, the change can be utterly transformational.

For, someone like me that has come from the private sector I am really clear that it is businesses that export and the people that we should be listening to are businesses so this is very much a business led strategy, so it is companies like yours or businesses you represent.

So this strategy has to be business led.

We’ve undertaken massive – and continuing – engagement with businesses – exporters, business organisations and associations who represent them as well as private-sector providers of export support; we have had over 25 roundtables all across the country.

I myself have been in Edinburgh, Belfast, Cardiff and all across the UK and I would like to say thank you to all of your for taking part – the CBI, IoD, British Chambers, FSB and many of you who helped make sure this is what business wants because from my perspective if we can serve business needs that will help us export more.

This strategy is developed with you and for you.

We started to try and understand what the barriers are that businesses face and that’s what we’ve based out focus on.

And companies have also been clear that government can play a very fundamental role particularly by focussing on ‘doing things that only government can do’. And by being clearer and prioritising more.

So this strategy doesn’t duplicate private sector export advice – or its export financing. We are targeting where the government can add genuine value.

And what have businesses told us? What you’ll see in the strategy is that we’ve focussed on 4 main areas :

Firstly – encouraging more companies to export, for the reasons outlined by the Secretary of State and for more countries to look at UK goods and services

Secondly – to help inform our companies

Thirdly – using the connecting and convening power of government in a significantly enhanced way.

And finally, providing finance in areas of market failure.

Let me take each in turn.

Firstly: encouraging firms to export. Many new exporters told us that, once they did start exporting, it was less difficult than they’d thought – they wished they’d started sooner!

But businesses were clear that they are much more likely to listen to – and benefit from their peers, government telling business this is how you export doesn’t work, talking to a peer about a similar product in a similar market really has impact.

So we will build up a national network of UK Export Champions – we are starting with the good practice of the Midlands Engine and the Northern Powerhouse who are at 500 Export Champions now and we will expand that right across the UK.

We’ll also develop an online community so that we can have interaction in a much more time efficient way because that’s what businesses told us “we’re time poor, we want to export but we don’t have time so help us have a time efficient way to go forward”.

We’ll also deploy our resources to encourage overseas buyers to buy British products and services.

This activity will encompass large expos – such as Dubai 2020, or the Great British Festival of Innovation and Creativity held in Hong Kong in March this year; we will continue to use the PM’s Trade Envoys, who are incredibly valuable to us in opening markets – I see that Lord Poppat is here – there may be others too – the Trade Envoys network is powerful. And also focussed missions.

I went on a trade mission on augmented reality and gaming capability to Mumbai and Bangalore with a small group of British companies – the aim was for them to identify some suppliers – one company who accompanied, called Spearhead, an augmented reality company, not just found suppliers but also was spotted by a large energy company who said they would like to use their technology.

These trade missions really work so we will do more.

Secondly: informing. Many businesses, especially small ones, said they didn’t have the expertise to export: lacking knowledge about local business cultures, regulations, or consumer needs.

So they need help in understanding where the opportunities are.

We believe that, alongside support from our trade advisers, we can use our website great.gov.uk – one-stop-shop for digital advice for companies entering overseas markets.

Central to that plan is our desire to improve over the next 2 months – the number of opportunities listed on our site, currently 1750 – we aim to increase that to the tens of thousands. So that firms can understand, do they have the capacity and the capability.

In the future we will aim to apply machine learning and big data for companies who opt in – so that we can prompt them if we identify opportunities that might be of interest to them.

We also need to harness the extensive support that is available from other sources.

So we are working with private sector providers to help us signpost more because that’s another message from business – “all of this support is available but who do I go to?” so what we are trying to do is find ways to signpost and there will be no wrong door.

Thirdly: connecting. I was struck by how much firms said to us during our consultation that that ability to connect – just by holding an event at one of our posts overseas – how it brings in those local potential customers and that is where we can step in.

Government is already acting to help support consortia of UK firms to bid on foreign contracts.

Many other nations have a concept of Team-whatever their country is, we need to have ‘Team-UK’ approach.

At the forefront of this we have Infrastructure Exports: UK, where we have pulled together a group of businesses to identify specific opportunities and we’re going out with an offer to overseas markets.

In similar fashion, the Department for International Trade, including UK Export Finance, is working with other government departments to organise supplier fairs, where foreign buyers can bring specific opportunities directly to UK businesses, an initiative which has already seen astonishing success.

As well as convening businesses, we also plan to make even more effective use of those attributes only government has. For example, we have a huge overseas network – 108 countries worldwide – and we are able to more efficiently understand where opportunities are and connect back better with our team to make sure companies are aware of them.

We recognise that in many countries, UK-government backing is seen as a seal of quality – so we will be focussing more on our government-to-government offer. And our trade policy arm will be actively working to improve market access and regulation. It’s a real benefit of having DIT – with trade policy, investment and exports all in one department so we can work together.

To assist this activity, we will be setting up a new digital service to help companies report trade barriers, to help us target ourwork more effectively.

All of this work will be supported by the new network we have of our 9 new Her Majesty’s Trade Commissioners, that is government signalling that business really matters overseas and to elevate to Trade Commissioners who have real heft in overseas markets to help with those plans.

Fourth and finally: finance. Many companies say that finance is something that stops them competing on a level playing field to win contracts, or to fulfil those contracts, and make sure they get paid at the end.

At the moment, many firms say they aren’t getting that – or that by the time they get it, the opportunity has already gone.

So we have put finance at the heart of the Export Strategy.

The mission of UK Export Finance – the world’s oldest export credit agency– is for no viable project will fail due to lack of finance or insurance.

We have a £50 billion capacity, we provide multiple export finance products, including working capital and political risk insurance. We also offer the ability to ‘buy British pay local’ now in over 60 currencies.

This is a service, for those who might not know about it, which has been radically improved over the last few years.

It is now ranked as one of the top Export Agencies in the world. For those companies who use it, they say it is a ‘game-changer’. So where, you might, sensibly, ask is the problem?

And the problem is this, it is one of the best kept secrets – big companies know about it, SMEs do not. So part of our plan is to build awareness of UKEF and we have also put more UKEF advisers into overseas markets so we have that connection there too.

We will also continue to develop a suite of products to make sure that they stay at the top of the rankings. This is a strategy which is not just in England, it is right across the UK and the Department for International Trade operates right across the UK.

Another piece of good news: we’re not beginning from a standing start. Businesses already say time and again through our consultation, “don’t rip our everything that you’re doing and throw it out because this is a new strategy – keep what’s working and build on it” so that’s what we’ve done.

And let me say one last thing before I conclude.

Clearly our role is to take the lead on supporting businesses to export. If we are to achieve our aim we have to work right across government because all almost every government department has businesses inside their portfolio that have the capacity to export.

Through our overseas networks, we naturally work very closely with the Foreign Office and DFID.

And as the international part of the Industrial Strategy I’m very pleased we are increasingly working with BEIS.

In fact one of the real impacts of industrial society is that opportunity and exports are really starting to hit the national conversation and my hope is that that conversation, like the conversation now on productivity, becomes a national one – a national conversation about exporting.

But it requires joining up right across government and that’s why I’m particularly pleased, as the Secretary of State said that this has been developed in collaboration with our partners partners at the Department for Transport, Her Majesty’s Treasury, and the Department for Health, among many others.

And that’s why I’m confident this has a really great chance of beinga success – it can be a catalyst that transforms lives, businesses,their workers and creates businesses that can be handed down through generations,

Now, I’m a businessperson, strategy is one thing but it doesn’t get implemented if it becomes a report that gatehers dust.

It’s the implementation that matters most – this strategy was designed with that in mind.

I’m delighted that we’ve been able to appoint some great people in our department and we have brought in 2 Director Generals – John Mahon who will be answering your questions today alongside Liam and myself – he was a senior business executive at Barclays – he will be leading this strategy and operationalising it.

As we said at the beginning, this is just the first step. We aim to implement this successfully and then build on Export Strategy 2.0 to turbocharge that performance.

So my request for you today is simple let’s start that national conversation today on exports – we do have an exciting national challenge.

Let’s rise to it – government, and business together and become that exporting superpower so that we can hand over truly great heritage to generations to come.

Thank you

The virtue of exports

This country has historically been a great, outwards looking trading nation. At our best we have sold what the UK has to offer to every corner of the globe. Exporting is as key a part of our economic international activity as it ever has been.

It is crucial to our prosperity, stability and security. Whether in creating jobs, raising wages or growing our economy, our exporters lead the way. They account for some 60 per cent of our productivity growth and have been a major component of the UK’s strong economic performance since 2010.

This success spans the length and breadth of the UK, from oil extraction and financial services in Scotland, to transport and film producers in Wales, to aerospace and e-commerce pioneers in Northern Ireland, to FinTech and professional services firms across England.

In particular, exports build economic resilience and bring the higher skill, higher paying jobs that we will need to thrive in the world as a truly Global Britain.

In the last year we saw UK exports of goods and services rise by 4.4% – to a record £621 billion this year’. Yet although we punch above our weight, in many ways we are still short of our full potential. And whether or not we had decided to leave the EU, the UK would still have needed to up our game on exports. Why? Because we know that firms that export will have better productivity, better paid jobs and will be likely to operate for longer.

And we know that improved exports lead to greater profits and generate tax revenues to support the public services on which we depend – from health to defence.

A Changing World

The world around us is changing faster than we may realise.

New patterns of growth are altering the landscape of the global economy at a staggering pace.

In countries in the West which have long had economic and political dominance, the speed and scale of change can be difficult to comprehend.

Last year global exports were worth more than double what they were worth in 1997 – and that is despite the global financial crisis.

China is expected to have 220 cities with a population of more than a million by 2030. The whole of Europe has just 35. And PWC has predicted that there will be 1.1 billion middle class Africans by 2060.

The shifts in global economic and demographic power – and the rise of collective wealth of developing countries that it is bringing – will shape future opportunities of free trade in the years to come.

Making the most of these changes – providing the jobs and prosperity the UK needs – means navigating this shift successfully.

We cannot wish away these inevitable changes – and nor should we.

UK businesses are superbly placed to capitalise on the rapid changes in the global economic environment.

Economies in South Asia, East Asia and Africa are becoming more and more prosperous, driving demand in precisely those sectors in which the UK excels.

I see examples of the demand for British goods and services on every overseas visit I make. UK products enjoy an unparalleled global reputation for quality, and the continued international demand for anything ‘made in Britain’, from luxury cars to business services, is only growing. Take China – which I will be visiting later today. According to research by Barclays, over 60% of people in China would actually pay more for a product, just because they knew it was made in Britain. That’s some reputation!

And across the world, the public and private sectors alike are seeking UK service exports, in the form of expertise on everything from improving education to delivering international sporting events.

The UK has the potential to be nothing less than a 21st century exporting superpower.

Our Strategy

Every day, fantastic UK businesses are succeeding in making new openings in overseas markets. However, there are still so many opportunities left unrealised. That is what this strategy is intended to change.

It builds on the Government’s Industrial Strategy, with the ambition of making exporting the norm, not the exception, and working with business to give them the tools they require to unlock our economic potential.

The innovation, ambition and hard work of UK businesses will help power the prosperity that underpins our social cohesion – and the political stability that is the foundation of our collective security, not only in the UK but around the world.

Currently, exports represent around 30% of our GDP – broadly similar to France, Italy and Canada, but substantially behind Germany. Given the strength of the UK economy, we should be reaching for the top of the pack – not lingering in the middle.

That is why today I am announcing a new national ambition to raise exports as a proportion of our GDP from 30% to 35%, putting us towards the top of the G7. This is challenging, but achievable as we build a truly Global Britain.

And the 35% target is just the first part of the story – this will be used as a tool for us to work with other Government Departments, Devolved Administrations and businesses to leverage more transformative proposals in Export Strategy 2.0.

Governments do not create wealth but we can help and support those who do. We will work with businesses – the drivers of exports and growth – to expand their global footprint and take full advantage of our trading relationships in every part of the world.

The government is determined to play its part to help support, connect and grow UK companies on the global stage. We will ensure that we use our international network and government-to-government relationships to the greatest advantage; helping to connect businesses, open markets and unlock opportunities overseas.

As well as continuing to work closely with industry, we will take a whole-of-government approach, collaborating with partners in the Devolved Administrations, across local government, and with industrial bodies, to put in place practical, promotional support and the very best in export finance. This will help firms – from start-ups to large multinationals – to maximise their export potential.

As I have said, it is business – not government – that must be at the forefront of this ambition. Governments generally do not break into new markets, invent new products, or win export orders – businesses do. That is why this is also a business-led strategy, developed in cooperation with firms across the UK to address the practical barriers they face to exporting.

Whether it is payment risk issues, a lack of working capital or simply not having the right contacts in markets overseas, this Export Strategy is about finding, addressing and overcoming these barriers.

Some barriers can be about perceptions. Some firms maybelieve they are not suited to overseas sales, or lack the confidence or knowledge in how to pursue them. They may not have they information they need about how to tackle market access issues, how to seek and get export and trade finance, or even where to go for help.

This strategy is about increasing awareness, making connections and working with business to help those that could export but don’t – or are just at the beginning of their export journey.

UK Export Finance – often called the governments best kept secret – ensures that no viable UK export fails through lack of finance or insurance – a promise that we put at the heart of this Strategy.

One of the main lessons from our consultation is that businesses want to talk to their peers about their experiences. So our strategy creates a network of Export Champions across the UK – business people offering expertise and guidance to support other businesses on their exporting journey.

As the slogan says, ‘if we can, you can’. That means so much more coming from business peers.

The Strategy builds our digital services to make it as easy as possible for businesses to navigate the export guidance, support and information government provides.

And it continues to strengthen our international trading relationships through ministerial visits, the Prime Minister’s Trade Envoys, and our new network of HM Trade Commissioners.

And when it comes to Ministerial visits, we have kept our promise to publish a list of the countries my Ministers and I will be visiting. This innovative approach gives businesses the opportunity to have their say on ‘in market’ issues, and let us know if they feel Ministerial engagement in a certain country can benefit them, whether in opening market sectors or getting business deals over the line.

Conclusion

Forging a new role for the United Kingdom on the world stage starts with addressing the export challenge.

Since the British people’s decision to leave the European Union, there has been much discussion on the UK’s economic future. Some have expressed doubts about our capacity and willingness to ensure this country remains at the very heart of international trade.

This is a view I fundamentally reject. Brexit is not the occasion to ‘pull up the drawbridge’ – but to embrace the opportunities that the changing pattern of global trade presents.

I truly believe that Brexit is an opportunity. At Chequers, the Government agreed its proposal for an economic partnership with the EU after the UK leaves on 29 March next year. It confirmed that the UK will leave the Single Market and the Customs Union and will seize new opportunities from trading with the rest of the world.

But to ensure we are at the forefront of global trade, we must do more. We must raise our ambitions, widen our horizons and expand our timescales. Europe is and will continue to be an important market for our goods and services, but there is a world beyond Europe and a time beyond Brexit.

And as we pursue our first independent trade policy in over four decades, we must maximise our global export potential, delivering benefits for business, workers and consumers around the UK. To do this, we must embrace the huge changes underway in global trade patterns, look to the future, and recognise that the time is now to set ourselves on this path to our collective prosperity.

I will repeat again – around 90% of global economic growth in the next 10 to 15 years is expected to be generated outside the European Union. We must adapt to be part of that change. And that is just what this Export Strategy aims to do.

To forge Britain’s future as one of the 21st Century’s great trading nations…

And to build a truly Global Britain.

Thank you.

The Transport Secretary has today (21 August 2018) announced the appointment of Declan Collier as his preferred candidate for the role of Chair of the Office of Rail and Road (ORR) following an open competition. The former airport chief executive demonstrated an outstanding range of skills and a distinguished record in delivering for transport users following a high-flying career in aviation.

Following standard parliamentary procedures for a public appointment, the Transport Select Committee will hold a public scrutiny hearing with Mr Collier later this year. The final decision on the appointment will be subject to the outcome of that hearing and he is expected to start work as Chair on 1 January 2019.

Mr Collier will succeed the current chair Professor Stephen Glaister who steps down at the end of 2018 after 3 years, and will return being a non-executive director on ORR’s board.

Transport Secretary Chris Grayling said:

The ORR performs an important role as the rail regulator and roads monitor for England and I look forward to Declan Collier taking up this position.

Declan brings a wealth of transport sector knowledge, and I am confident he will be able tackle the diverse range of issues that the regulator covers.

I would like to thank Stephen Glaister for his work, he has played a distinguished role as Chair, bringing important leadership during the 2018 periodic review process, which will set the regulatory framework and funding for Network Rail for the next 5 year control period”.

Declan Collier has recently stepped down as CEO of London City Airport, a role which he held since 2012, and prior to that he was CEO of Dublin Airports Authority for 7 years. He is currently a non-executive board member of The Royal Schiphol Group and TCR International NV. He has broad experience in transport and business and has served as President of the World Association of Airports, Airports Council International (ACI); Deputy Chair of the Airport Operators Association (UK); and as Director of London First; Allied Irish Banks Ltd, and The Dublin Theatre Festival. Mr Collier has declared that he has undertaken no political activity in the last 5 years.

ORR Chair Stephen Glaister said:

It has been a pleasure and privilege to steer ORR as Chair over the last 3 years. In that time we have seen many changes and challenges in the rail industry: a period in which ORR has played its full part. This continues with the 2018 Periodic Review, which will set Network Rail’s price control from 2019. We have also matured our monitoring of Highways England as the company has progressed from its new beginnings.

I am pleased to welcome Declan at this important time for both rail and road. His background will bring significant experience to the organisation and ensure we remain a strong, independent economic and safety regulator that protects the interests of passengers, freight customers, road users and taxpayers.

ORR is the UK’s independent rail regulator and strategic roads monitor for England. Accountable to Parliament, it protects the interests of rail and road customers through its regulation of railway safety, and the performance and value for money of the rail and road networks, where government remains committed to major investment to improve outcomes for users.

To assist with his induction into the role, the Transport Secretary expects to appoint Declan Collier as a non-executive member of the board for a brief period before he takes up the role of Chair.