Wallpaper boss lambasts Britain’s ‘naive’ export strategy, saying that Britain must adopt German model to help mid-sized companies to trade abroad

Entrepreneur attacks Britain’s export strategy

Wallpaper boss lambasts Britain’s ‘naive’ export strategy, saying that Britain must adopt German model to help mid-sized companies to trade abroad

By Rebecca Burn-Callander, Enterprise Editor

7:00AM BST 28 May 2014

The boss of luxury wallpaper retailer Graham & Brown has claimed the Government’s export strategy is “naïve”, “slow” and “bureaucratic”, and does not give sufficient support to mid-sized exporters.

In a letter to Business Secretary Vince Cable, Andrew Graham, who is also an ambassador for UK Trade & Investment, warned that the Government’s failure to act now risks turning Britain into a “bit-part player” on the international stage.

Mr Graham said policymakers should “back the best” exporters and target mid-sized businesses that are already selling abroad, rather than focussing disproportionately on start-ups.

“The mistake politicians make is focussing on very small businesses which have never exported, instead of those who already do it and who, with a little help, could do a lot more,” he said.

According to the CBI, firms with turnover of between £10m and £100m account for less than 1pc of all UK businesses, yet generate 22pc of revenue.

“This is all about helping the country as a whole and we have to look at which businesses have the most potential to grow,” said Mr Graham. “That is how you rebalance the economy and reduce the trade deficit.”

The Government should seek to emulate Germany’s successful export strategy, he added, by bringing in private firms to run the Government’s UK Export Finance programme, underpinned by the Treasury.

In Germany, the involvement of accountancy firm PwC and credit insurer Euler Hermes in its state-supported export finance programme has created a less risk-averse system which supports entry into newer and faster-growing markets, he claimed.

Blackburn-based family business Graham & Brown, which was founded in 1946, is an international exporter of high-end wallpaper, created by designers including Kelly Hoppen, Wayne Hemingway and the V&A. It generates 50pc of its £90m revenue selling into 75 countries worldwide.

However, according to Mr Graham, a lack of UK trade finance has hampered the company’s attempts to reach consumers in new markets, such as North Africa and Russia.

Mr Graham said: “UK Export Finance treats lending money for export as a massive risk but doesn’t consider the jobs and growth created, in contrast to countries like Germany and Canada, which are streets ahead of us.”

The Government’s export policy includes targets to get a quarter of businesses selling abroad, up from the current one in five, and for the UK to export £1tn annually by 2020 compared with the current £304bn.

“It is fashionable for politicians to talk about rebalancing the economy by helping businesses to export more,” said Mr Graham. “But the reality is that those in power are often hampering firms rather than helping them because of a naïve system that is too bureaucratic, slow and uncompetitive.”

A UKTI spokesperson responded to Mr Graham’s letter, saying: “Last year UKTI helped over 40,000 firms to sell their products and services abroad.

“Our medium-sized businesses have the potential to be economic powerhouses for the UK but their success depends on expanding beyond domestic markets. We have written to every medium-sized firm in the country to offer them export support and we are trebling the number of dedicated trade advisors.”