Trade credit extension announcement - step in the right direction

9 June 2009

Extending the date for the trade credit insurance top-up scheme is a step in the right direction, but more changes still need to be made said the British Retail Consortium (BRC).

Reacting to the Government's announcement today (Tuesday) that its trade credit insurance top-up scheme, originally announced in the Budget, is to be backdated to 1 October last year the BRC said this was a welcomed move - but it fell short of the 1 April 2008 start date the retail trade body has been campaigning for.

Jane Milne, BRC Business Environment Director, said: "The Government's decision to extend the eligibility of the trade credit insurance top-up scheme is a welcomed move. But it should be back dated to last April, when insurers began removing cover as the downturn started to bite.

"Matching the trade credit insurance that private insurers are willing to provide is vital to helping fundamentally sound businesses weather the recession. For retailers to survive and keep people in work they need to keep shelves stocked with the goods customers want.

"Allowing businesses to nominate the six month period the top-up is available will improve the flexibility available to retailer suppliers to get help during their busiest times, such as the run-up to Christmas.

"But the Government needs to put more pressure on insurers to undertake more detailed research to ensure underwriting decisions are more accurate and there's an improvement in customer service."

Media Contacts: BRC Press Office 020 7854 8924 Out of hours 07921 605544

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