Board of Trade needs drastic surgery not a facelift

Experts have criticised the decision by the Government to relaunch the UK Board of Trade without implementing meaningful changes to how it functions

The Government announced today that the UK Board of Trade will be revamped to include the Managing Director of Universal Music Group,  Sir Lucian Grainge, and fashion designer Anya Hindmarch who, but with the Secretary of State for Business and Trade continuing to serve as its President.

However, the move has drawn criticism for those calling for the Board to be given a more meaningful role when it comes to scrutinising new trade deals and assessing the UK’s trading performance.

Trade as a percentage of UK GDP fell by  11% in the first year following the implementation of the Government’s Brexit deal and the Government’s only two meaningfully new trade deals post Brexit, with Australia and New Zealand, have also proven controversial, particularly with Britain’s farmers.

In May, the cross-party UK Trade and Business Commission recommended that a new arms-length and independent UK Board of Trade be established to act as an ‘OBR for trade’ to provide evidence based analysis of UK trade policy and performance.

Last week, 82 leading academics, industry bosses, former Ambassadors, trade bodies and trade experts, wrote to Trade Secretary Kemi Badenoch, calling for the Board of Trade to be made independent of Government.

L. Alan Winters, Professor of Economics at the University of Sussex and former chief economist at the Department for International Development who sits on the UK Trade and Business Commission said,

“This announcement equates to little more than a change of personnel, a facelift, when what is needed is drastic surgery, a complete overhaul of what the Board of Trade is for and how it operates.

“We don’t need a booster group for the Government, we need a dispassionate analysis of our trading position and an independent voice that can cut through the headlines to highlight the pros and cons of any new trade policy.”

Sir Vince Cable, former President of the Board of Trade and former Secretary of State for Business, Industry and Skills said,

“Voters rightly expect that Government policy, and indeed parliamentary scrutiny of it, should be evidenced based. An independent Board of Trade, with the power to publish assessments on the impact of proposed trade policy, is critical in any liberal democracy seeking to protect domestic industry and boost economic growth.”

Paul Drechsler, Chairman of the International Chambers of Commerce UK said,

“With this proposed shake-up of the Board of Trade, Government has a real opportunity to engage business and industry at the policymaking table in a meaningful way.

"Working together with those on the front line of global trade, and giving them the independence to issue guidance on the pros and cons of proposed deals, would be a win-win for the UK.

"Those of us who have signed this letter, hope the Secretary of State will grasp this opportunity and  implement our recommendations in full.”