Richard Threlfall, KPMG’s Head of Infrastructure, Building and Construction comments on today’s budget announcements: “UK construction firms struggling to find good news in the budget should take a closer look at the announcement on the reform of UK export finance, in particular the commitment to reduce interest rates on the direct lending programme to the lowest permitted level – in line with other countries’ export schemes such as those offered by the US and Sweden.
“The improved direct lending scheme will offer low cost finance to any overseas buyer offering a contract of at least £5m in value and where at least 20% of the supply is from the UK. The main beneficiaries of such schemes will be suppliers of high technology engineering in the defence sector, and suppliers to major overseas infrastructure projects.
“The scheme should over time provide a welcome boost in demand to UK exporters in the construction industry supply chain. Firms that are currently focussed only on the UK should start looking at overseas markets as well.”
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