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 financial aid for industries and broadened the scope of support for exports.

Description

This Act amended two previous Acts: the Industrial Development Act 1982 and the Export and Investment Guarantees Act 1991.

Industrial Development Act 1982

The Act increased the maximum limit on government financial assistance to UK industry from an unspecified amount to £12 billion. The Secretary of State, with Treasury consent, can increase this limit by up to £1 billion on no more than four occasions. The Industrial Development (Financial Assistance) Act 2003 was repealed as a consequence.

Export and Investment Guarantees Act 1991

The Act expanded the government's power to provide financial support for UK businesses exporting goods or services. This support can now include goods and services supplied before the arrangements are made, or those that may be supplied in the future.

Government Spending

The Act potentially increased government spending on support for UK industries and exports by a significant amount. While a precise figure isn't specified, the maximum possible increase is £12 billion plus four potential increases of £1 billion each, making a potential total of £16 billion.

Groups Affected

• UK Businesses: Could receive increased financial assistance for domestic operations and export activities.
• UK Exporters: May benefit from broader government support for export activities, including retrospective support for past exports.
• UK Government: Will face increased potential expenditure, subject to the decisions of the Secretary of State and Treasury.

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