In a strategic move to reinvigorate the UK’s coastal communities and bolster the nation’s maritime sector, the government has inaugurated a ground-breaking Shipbuilding Credit Guarantee Scheme (SCGS). A significant component of the £4 billion National Shipbuilding Strategy Refresh, the scheme is set to catalyse the economy, potentially generating hundreds of jobs and infusing hundreds of millions of pounds into the UK economy.
A Beacon of Hope for UK Shipbuilding Sector
The SCGS aims to facilitate ship buyers in acquiring finance to purchase and upgrade vessels built in the UK. The government will serve as a guarantor for lenders, facilitating credit availability for maritime firms and sparking growth in key areas, including Liverpool, Plymouth, Rosyth, and Belfast, among others.
Industry Minister Nusrat Ghani, who officially unveiled the scheme onboard a Thames Clippers’ boat – a creation of the Wight Shipyard, one of the beneficiaries of the new programme – remarked, “Shipbuilding is an integral part of the UK’s industrial identity, and through this scheme, we’re backing our great maritime businesses to steam ahead of the competition.”
Ghani highlighted that the initiative would not only escalate high-skilled careers in shipbuilding but also propel growth across the supply chain involved in ship construction and enhance the export prospects of UK firms, contributing to economic expansion.
Fuelling Growth and Innovation
Based on government estimates derived from the commercial shipbuilding demand in the UK, the scheme is poised to create several hundred new jobs and pump hundreds of millions of pounds into the economy. With shipbuilding supporting over 42,600 jobs nationwide and contributing £2.4 billion annually to the economy, this scheme significantly enhances the UK’s global competitiveness in shipbuilding.
Defence Secretary and Shipbuilding Tsar Ben Wallace emphasized the scheme’s role in building confidence in UK shipyards, enabling them to invest in technology and human capital to augment productivity in this crucial sector of the UK economy.
Nurturing a Greener Maritime Sector
This initiative aligns with the broader vision of fostering a greener UK economy. By supporting high-value vessels’ acquisition, construction, and repair, the SCGS is encouraging sustained investment in sustainable and low-carbon maritime technologies.
Chris Shirling-Rooke MBE, CEO of Maritime UK, lauded the government’s commitment, stating, “The SCGS is a massive vote of confidence from the government, and it will empower the UK’s shipbuilding enterprise to compete fairly on the global stage in doing what it does best: building Great British ships.”
As the maritime sector embraces the new era of green technology and innovation, this scheme stands as a promising avenue to nurture talent and facilitate extensive training, setting the stage for the UK to regain its stance as a global leader in maritime advancements, particularly in the arena of green technologies and initiatives.
