LONDON (CU)_The British government is planning to launch four regional trade an investment hubs to boost economic growth across the country, Trade Secretary Liz Truss said on Tuesday (23 March). She revealed that the hubs would be located in Edinburgh, Belfast, Cardiff and Darlington.
The purpose of the initiative is to provide localised advice to regional businesses in order to access major trade markets and boost exports.
“I’m determined to use UK trade policy to benefit every part of the UK. These trade and investment hubs will help this country to an export and jobs-led recovery,” Truss said.
“They will mean we can channel investment into all corners of the country, and that exporters – whether they’re selling Scotch beef, Welsh Lamb or cars made in the North of England – have access to the expertise they need to sell into the fastest growing markets.”
According to official data, 6.5 million jobs across the UK rely on exports, of which 74 per cent are outside London. However, data also shows that exports from UK to the European Union fell 40.7 per cent in January.
Experts say that the government is missing the concept, and has muddled up the order of its plans.
“The trick they’re missing is the concept is right, but actually what you need is to create the businesses, encourage exports and then provide the export advice,” Justin Urquhart-Stewart, co-founder of Seven Investment Management and the Regionally investment platform, told BBC.
He said that although the government’s decision to focus on businesses outside London is a welcomed move, however, the capitals of the three nations and Darlington are not where the industries are. Instead, areas such as Manchester, Preston, Leicester and Sunderland have been recognised as major areas for manufacturing and export outside London.
He claims that although Britain is particularly experienced at setting up businesses, however, the shortcomings are in the failure to provide investments for enterprises to go “from seedling businesses to growth businesses”.
“There’s no shortage of money, the problem is we’ve taken away the mechanism for local businesses to get funding from local investors,” he said.
