Wednesday, May 15, 2024
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Government Launches Shipbuilding Credit Guarantee Scheme to Boost UK Shipbuilding Sector

Government Launches Shipbuilding Credit Guarantee Scheme to Boost UK Shipbuilding Sector

The UK government has introduced a new initiative, the Shipbuilding Credit Guarantee Scheme (SCGS), to aid ship buyers in accessing finance to purchase UK-built vessels and upgrade existing ones. By acting as a guarantor for lenders, the scheme aims to unlock credit for maritime firms, driving growth in the shipbuilding industry and benefiting coastal communities in regions like Liverpool, Plymouth, the Solent, Rosyth, Clydebank, and Belfast.

 

The UK government has introduced a new initiative, the Shipbuilding Credit Guarantee Scheme (SCGS), to aid ship buyers in accessing finance to purchase UK-built vessels and upgrade existing ones. By acting as a guarantor for lenders, the scheme aims to unlock credit for maritime firms, driving growth in the shipbuilding industry and benefiting coastal communities in regions like Liverpool, Plymouth, the Solent, Rosyth, Clydebank, and Belfast.
 

Nusrat Ghani, the Minister for Industry and Economic Security, highlighted that shipbuilding is an integral part of the UK’s industrial identity, and through this scheme, the government supports maritime businesses to gain a competitive edge. With state-of-the-art vessels designed and built in the UK, the initiative is expected to bolster high-skilled careers and the shipbuilding supply chain, contributing to economic growth.

The SCGS is projected to create hundreds of new jobs and provide hundreds of millions of pounds to the economy, as per government estimates based on the demand for commercial shipbuilding in the UK. This initiative forms part of the £4 billion National Shipbuilding Strategy Refresh announced last year, aimed at revitalizing the UK shipbuilding sector and coastal communities.

Industry Minister Nusrat Ghani officially launched the scheme onboard a Thames Clippers’ boat, built at Wight Shipyard – one of the UK firms set to benefit from the initiative. The SCGS will guarantee a percentage of the value of loans used for vessel purchase, refit, retrofit, or repair, thereby sharing the risk with lenders and encouraging finance offers to UK vessel owners and operators.

Maritime UK CEO Chris Shirling-Rooke MBE commended the government for fulfilling its pledge to the industry through the National Shipbuilding Strategy Refresh. The SCGS, seen as a substantial vote of confidence from the government, empowers the UK’s shipbuilding enterprise to compete globally, building high-quality British ships.

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