UK Trade & Investment (UKTI)

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A UK government trade and investment promotion agency supporting businesses to export internationally and attracting foreign direct investment.
What are the main aims and objectives?

UK Trade & Investment (UKTI) had two principal aims that defined its mission. The first was export promotion - supporting UK-based businesses to grow internationally through trade by helping them succeed in international markets. This included supporting SMEs to grow their business through trade, connecting UK businesses to top commercial opportunities, and coordinating government's approach to increase exports and investment. The second aim was inward investment - attracting high-quality foreign direct investment to the UK and helping overseas companies bring investment to the UK's economy. UKTI set ambitious targets including doubling the number of companies it helped to 50,000 by 2014-15, achieving the government's aspiration of doubling UK exports to £1 trillion by 2020 (announced in Budget March 2012), and getting 100,000 more UK companies exporting by 2020. The organization also aimed to allocate at least 50 per cent of resources to high-growth markets by 2020 and ensure at least 50% of new-to-export and new-to-market firms reported improved business performance as a result of UKTI assistance.

How does the program work?

UKTI operated through a multi-layered structure that brought together expertise from two parent departments - the Foreign & Commonwealth Office (FCO) and the Department for Business, Innovation and Skills. The organization employed approximately 2,400 staff and advisers, including around 1,250 based overseas in 108 locations, providing services in over 100 markets throughout the world.​

For UK exporters, UKTI published hundreds of new export opportunities monthly from around the world. The organization provided access to a regional network of international trade specialists across the UK to help businesses acquire the skills, contacts and confidence to start exporting or break into new markets. UKTI worked closely with its global network of advisers to ensure UK businesses received the best advice about exporting to their chosen destinations. The organization offered specialized services including the Overseas Market Introduction Service (OMIS), which provided tailored support for companies entering specific markets, as well as trade missions, trade fairs, and webinars. UKTI also provided market intelligence and sector-specific support across different industries.​

For inward investment, UKTI helped overseas companies identify market opportunities in the UK and Europe. The organization provided advice on setting up in the UK, covering tax, employment, marketing, and visas. UKTI identified ideal events and networking opportunities with British suppliers and offered specialist help for entrepreneurs and ongoing support to help companies grow after establishing in the UK.​

UKTI developed sophisticated performance measurement systems to track its effectiveness. The Performance and Impact Monitoring Survey (PIMS) was an independent survey conducted by OMB Research that measured the performance and impact of UKTI support. The Customer Data Management System (CDMS) integrated customer data and transaction history. UKTI also used a Trade Growth Value process to record the monetary value of assistance provided to companies securing contracts. The organization used a rigorous methodology to assess additionality, ensuring only benefits explicitly attributed by clients to UKTI support were counted, and excluding cases where clients stated they could have achieved similar results without support.

What is the overall cost?

UKTI's funding came from three main streams during the 2004-05 period under the Spending Review 2004 (SR2004). Programme funding totaled £100.5 million (approximately $184 million USD at 2004 rates), voted directly by Parliament with UKTI's Chief Executive as the Accounting Officer. FCO Admin funding was approximately £144 million (approximately $264 million USD), reducing by £20 million over the SR2004 period, with the FCO's Accounting Officer responsible for this funding. DTI Admin funding was £36.7 million (approximately $67 million USD), reducing by £4 million over the SR2004 period. Total approximate funding in 2004-05 was around £281 million (approximately $515 million USD) across all three streams.​

The UK Government's 2012 Autumn Statement increased funding for UKTI by £140 million over two years. In 2012-13, the FCO and UKTI spent over £420 million on supporting UK business overseas, including promoting exports worldwide. When UKTI transitioned to become part of the Department for International Trade (DIT) in July 2016, DIT's budget for 2016-17 was £364.2 million (approximately $473 million USD at 2016 rates), which increased to £373.9 million for 2017-18.

How was it implemented?

UKTI was formed in May 1999 as British Trade International in response to findings of "The Review of Export Promotion: A Report by the Secretary of the Cabinet, February 1999" (known as the "Wilson Report"). The organization initially comprised two parts: Trade Partners UK for export promotion and Invest UK for inward investment and foreign direct investment. In October 2003, these two inner departments merged and were rebranded as UK Trade & Investment to simplify the outward recognition of the organization and reduce confusion.​

UKTI operated under several strategic frameworks during its existence. The early strategy from 2004-2008 implemented its Spending Review 2004 settlement, which required a shift in resources from trade development to inward investment to a 67:33 split by end of 2007-08. The organization reduced 200 posts in offices in London, Glasgow, Cambridge and Birmingham, achieved in December 2006. UKTI increased focus on new-to-export firms, shifting from 31% to at least 40% of trade development resources by 2007-08.​

The "Prosperity in a Changing World" strategy, published in July 2006, set out UKTI's five-year role in helping the UK respond to challenges and opportunities of globalization. This strategy emphasized building strong trade and investment links with emerging markets and more strategic resource utilization. The later "Britain Open for Business" strategy (circa 2013-2016) focused on transforming business-to-business trade support and working with British business groups and Chambers of Commerce overseas to develop their networks and capabilities.​

UKTI strategically reallocated resources across its network to focus on priority markets, aiming to allocate at least 50% of resources to high-growth markets by 2020. The organization identified 17 specific high growth markets with dedicated High Growth Market Specialists. UKTI contracted delivery of many regional services within the UK to other organizations, with business and university leaders working as "business ambassadors" to promote the UK internationally.​

Following the UK's vote to leave the European Union, Prime Minister Theresa May announced the creation of the Department for International Trade on 14 July 2016. UKTI was absorbed into this new department, which inherited approximately 2,500 staff and took on additional responsibilities including UK Export Finance, the Defence Security Organisation, the GREAT Campaign, and a new Trade Policy Group responsible for negotiating trade deals.

What impact has been measured?

UKTI demonstrated significant positive impacts across multiple dimensions. According to the Performance and Impact Monitoring Survey (PIMS), businesses receiving UKTI support reported substantial financial benefits. In the 12 months to June 2008, businesses reported an average financial benefit of £229,000 per business. By 2015, the average financial benefit reported by firms was approximately £253,000 in additional net profit, including discounted future values. UKTI reported that over 7,500 companies achieved measurable improvements in their performance as a result of support, generating around £2.5 billion of benefits in 2006-07. An independent evaluation of four UKTI services showed returns of £25 per £1 of UKTI spend.​

Rigorous econometric evaluations found that UKTI support had significant positive effects on firm performance. Firms receiving UKTI support experienced stronger export growth, mainly from expansion into new markets. Supported firms could expect turnover growth in the following year to increase by 1.45%. Labor productivity growth increased by 1.85% for firms receiving support. UKTI support led to an 8% increase in the likelihood of positive overseas turnover growth and a 1.5% increase in the likelihood of entry into new markets. The support helped both firms starting to export and those continuing to export across all firm size groups and different geographic markets. Firms using multiple UKTI services had larger impacts on both the probability of starting and continuing to export than firms using only one service.​

In terms of scale, in 2013-14, UKTI assisted 47,960 UK businesses, up from 24,550 in 2010-11, exceeding the target of 40,000. By 2014-15, UKTI was on track to reach its target of supporting 50,000 businesses. In 2015-16, firms receiving UKTI support achieved over £1 million in mean additional revenue as a result of the Overseas Market Introduction Service. Approximately 2,900 additional small firms and 600 additional medium and large firms started exporting two years after first receiving treatment in 2014-2015. Service quality was strong, with 52% of businesses receiving support reporting that their performance improved as a result, exceeding the 50% target.​

For inward investment, the UK remained the number one inward investment destination in Europe, with almost one-fifth of the total accumulated stock of foreign direct investment. Total inward investment successes reported to UKTI for 2005-06 totaled 1,220, up from 1,066 the previous year. These investments resulted in over 34,000 new jobs and safeguarded a further 55,000 jobs.

What lessons can be learned?
  • Weak procurement governance exposed serious systemic problems. A National Audit Office investigation into the PA Consulting contract revealed that UKTI's governance was fundamentally weak, with no clear commercial strategy and poor understanding of bids and requirements. Core documents like the business case were not available to contract management teams, leaving UKTI "exposed to not understanding what it had agreed to". The organization negotiated key contract elements after bids were submitted, restricting competitive tension and exposing it to reduced value for money.​
  • Financial benefits relied heavily on client self-assessments rather than verified outcomes. The high reported financial benefits of £229,000-£253,000 per firm relied on clients' own forecasts rather than independently verified outcomes achieved years later. Additionally, 29% of survey respondents either did not know or declined to provide an estimate of financial benefit, and 40% forecast no financial benefit.​
  • Lack of robust cost data undermined value-for-money assessments. UKTI lacked a full picture of the costs of providing individual services, making it impossible to reliably gauge efficiency or the relative cost-benefit of different services. This limited the organization's ability to optimize resource allocation across its service portfolio.​
  • Ambitious export targets were not achieved. The £1 trillion export target by 2020 was not achieved, and critics argued it was a flawed metric that didn't account for inflation or focus on export volume growth. The absence of a stated timeframe for export targets initially made it "difficult to hold DIT accountable for its progress".​
  • Erratic funding undermined business confidence and planning. Changes to funding, such as slashing in-year Tradeshow Access Programme funding for imminent trade shows that companies had committed to, undermined confidence and planning. Problems remained particularly acute for smaller, highly specialized firms under 70 employees making high-ticket items almost entirely for export.​
  • Cross-government coordination challenges limited effectiveness. UKTI sometimes struggled to influence other government departments to implement policy changes beneficial to UK businesses. The organization and FCO did not have joint accountability for planning, monitoring and delivery against the export growth goal despite sharing the objective. Lack of clarity about which department businesses should approach for support led to frustration.

CURATED BY

Tom Hancock

Research Associate
Global Entrepreneurship Network
United Kingdom