UKTI faces £40m cuts as part of ‘refocus’

The Government has cut more than £40m from its trade agency as it plans to “refocus” its export work.
By The Newsroom
Published 25th Nov 2015, 15:55 BST

Chancellor George Osborne said £1.2bn will be spent to overhaul UK Trade and Investments (UKTI) over four years to 2019/20, including £175m reinvestment.

The settlement amounts to a £42m cut for UKTI over four years from its current annual budget of £299m. After an initial £8m boost next year, its budget will fall to £277m by 2019/2020.

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The Government earmarked £27m to bring up to £1bn of deals to the Northern Powerhouse and the “Midlands Engine”. It will also invest £24m in digital resources.

HM Treasury said: “The government will refocus UKTI to enable it to become a world-class export and investment promotion agency. This will enhance direct support to business and develop the private sector market.”

UKTI has been criticised since its 2003 launch, with some firms questioning its services’ value.

In 2014, the Public Accounts Committee (PAC) said the agency must work harder to find new opportunities abroad.

But the Institute of Directors (IoD) said the Government had cut “one of [its] most effective schemes”.

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