British businesses let down by 'failing' export schemes, says Labour

Shadow business secretary, Chuka Umunna, accused the government of failing to deliver its pledge of an export-led recovery. Photograph: Ray Tang/Rex Features

Two flagship schemes set up by the government to encourage firms to export have failed to help a single firm.

Labour accused the coalition of "badly letting down business" as it emerged that neither of the schemes, designed to provide £6.5bn to support trade, were taking effect.

In answers to parliamentary questions tabled by shadow business secretary, Chuka Umunna, ministers admitted that the £5bn export refinancing scheme, launched in July 2012 and intended to be running by the end of that year, is not yet operational.

Meanwhile, a £1.5bn direct lending scheme launched in autumn 2013 has received only 15 inquiries, with just one firm putting in an application for support under a scheme first announced in the previous year's autumn statement.

A previous similar programme, the Export Enterprise Finance Guarantee scheme, was abandoned after only five firms received assistance.

Labour said the news was an embarrassment for ministers, as UK Trade and Investment's (UKTI) annual Export Week begins, after the latest ONS trade statistics showed Britain's trade deficit worsening and exports falling.

Umunna said: "Ministers promised an export-led recovery, but the truth is that they are badly letting down British business. Scheme after scheme which were supposed to help more firms export have failed to have any impact whatsoever, and now we learn that two programmes which were announced to great fanfare two years ago haven't helped a single firm.

"We desperately need to get more businesses exporting to boost middle-income jobs, grow our way out of the cost-of-living crisis and so we can ensure Britain can compete. As we've seen with so many of the Tory-led government's promises, they have completely failed to deliver."

UKTI's Export Week is expected to see thousands of firms attend events to provide advice on boosting overseas trade.