The mayor of London, Boris Johnson, has unveiled his plans to help more London businesses to market their goods and services around the world and take advantage of the weak pound.
The mayor’s plans, which are expected to aid an additional 2,500 businesses over the next three years, are outlined in London’s first ever joint export promotion programme, produced in conjunction with UKTI and the London Development Agency (LDA).
The actions set out as part of this programme include substantial new funds (£6.4mn) to support: more inward and outbound trade missions; more day-to-day expert advice from UKTI and others; a targeted approach to identifying business opportunities arising from fiscal stimulus programmes and sovereign wealth funds; an improved website for advice; and better identification and dissemination of overseas business opportunities.
According to a statement issue by the mayor’s office, “a strong and growing export market is vital to helping London through the recession, ensure its competitiveness is protected, and help make it a world beating trading centre for when the upturn comes”.
As such, the programme is designed to help London’s small and medium sized companies and entrepreneurs take the plunge into international markets; help those already successfully trading overseas to increase their business exports, as well as exploring new international markets; and promote areas of excellence in London’s economy so that they become undisputed world-leading sectors.
This week, the mayor along with the LDA, UKTI and the London chamber of commerce and industry is hosting an exports conference at City Hall, where 200 businesses new to exporting will be able to get advice on how to start up or expand their export operation.
In the five years between 2002 and 2007, London’s total exports of goods and services rose from £38bn to £59bn but it is felt that London’s export potential is not being maximised, especially with the strongly growing economies of India and China. The key reasons identified are the lack of information and advice, access to markets and motivation.
According to the statement from the mayor’s office, the programme will not only motivate potential new exporters, but will also include the following key measure:
- Increasing the number of overseas trade missions to 50 over the next year, and to develop a programme of inward trade missions bringing overseas buyers to London.
- Recruiting an additional team of trade advisers to help businesses to identify export opportunities.
- Create a new export website where existing and potential exporters can access a wide range of information on international trade and markets.
- Establishing a new ‘Promote London Council’ to maximise the opportunities to market all that London has to offer in the run up to the 2012 Games when the spotlight will be on the capital. This includes ensuring that London has a presence at next year's Winter Olympics in Vancouver and also at the Shanghai Expo. The council will meet for the first time in June this year.
- Developing a detailed international trade strategy for London.
Johnson comments: “It is not that long ago when London was the epicentre for world trade. Virtually every commodity was traded in and transported from our city to markets far and wide.
“Today exports are still an important part of London’s economic success, but I know we can do a lot more to sell our goods and services abroad, and with the weak pound there has never been a better time to get out there onto the world stage. If we can increase our export trade we will deliver the new business opportunities that will help see London through the current downturn as well as creating the new markets that will be critical to London’s growing economy when the good times return. I want London’s smaller businesses, that are successful at home, to have the same opportunities as larger companies to reach out and knock on the doors of new customers around the world”
Martin Cook, London director of UKTI says: “London has 12% of the UK’s population and, on current estimates, at least 16% of the country’s exports. That’s impressive, but we can do even more to grow London’s export base and provide new opportunities for London firms, particularly in parts of the world where economies are still growing.”
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