Overview

The Industry and Exports (Financial Support) Act 2009 increased the government's ability to provide financial assistance to UK industries and exporters. It raised the limit on aid for domestic industries and broadened the scope of export support to include past and future transactions.

Description

This Act made two key changes:

Increased Financial Assistance for Industry

It amended the Industrial Development Act 1982, increasing the maximum limit on selective financial assistance for UK industries from an unspecified amount to £12 billion. The Secretary of State, with Treasury consent, can increase this limit further, up to a total of £1 billion in four separate instances.

Expanded Export Support

The Act modified the Export and Investment Guarantees Act 1991, allowing the government to provide financial support for UK businesses exporting goods or services, even if the goods or services were supplied before the support was arranged. This retrospective application of support is a significant expansion of the government's powers in this area. The Act also repealed the Industrial Development (Financial Assistance) Act 2003.

Government Spending

The Act significantly increased the potential for government spending on supporting UK industries and exports. The initial £12 billion limit, along with the potential for further increases of up to £1 billion on four occasions, represents a considerable increase in available funds. Exact figures for actual spending under this Act are not provided in the text.

Groups Affected

• UK Businesses: Could receive financial assistance for domestic operations or exporting goods and services. The impact varies greatly depending on industry and application for aid.
• UK Exporters: Benefit from expanded support, potentially including retrospective financial help for previous exports.
• International Businesses: May indirectly benefit from the increased competitiveness of UK businesses aided by the Act.
• UK Government: Takes on increased financial responsibility for supporting industries and exports.
• Taxpayers: Ultimately bear the cost of government spending under this Act.

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