In fact, according to a Real FD survey, opinions are equally divided.
Dubbed ‘the worst recession since post-war history’, businesses have largely had to rely on policies to support them. Increasing confidence only serves to prove that point.
However, when we asked FDs whether overseas trading was as onerous as suggested in recent KPMG and YouGov research, the answer was a resounding yes.
Businesses listed a number of factors which they said prevented them from exporting to new markets including: not understanding the legal and regulatory requirements (20 per cent); lack of tax incentives; and volatility in exchange rates (17 per cent).
Kevin Smith, senior partner for KPMG’s national market practice in London said: “Given the financial barriers that await overseas, it is not surprising that SMEs who have survived the global recession are choosing to focus solely on the domestic market in the UK.”
And Lloyds Bank chief economist Trevor Williams believes that “a worsening trade deficit also weighs on UK exporters. This is in part due to the recent strength of the pound, slow growth in Europe along with geo-political tensions, and weaker growth in some large emerging market economies. These have put downward pressure on UK export growth, despite a rise in manufacturing output over the last year.”
It certainly seems the opportune time for chancellor George Osborne to pull export tax credits out of his red bag.