UK Government Announces The New Shipbuilding Credit Guarantee Scheme

The news came through after the UK’s government declared the launch of the new Shipbuilding Credit Guarantee Scheme (abbreviated the SCGS). The scheme has been designed to help buyers have access to finance to purchase UK-built vessels and upgrade their existing ships, with the government trying to act as the guarantor for lenders.

The UK’s Department for Business and Trade has to say that the scheme will help create hundreds of UK employment opportunities and contribute several millions of pounds to the economy based on commercial shipbuilding demands. The scheme further forms part of the £4 billion plan of the government to support UK shipbuilding via the National Shipbuilding Strategy Refresh declared in 2022.

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Harland & Wolff CEO John Wood mentioned that they are delighted to welcome the introduction of the Shipbuilding Credit Guarantee Scheme. The scheme is going to help UK shipbuilders compete and win orders. They will also help create top-notch jobs across the nation. They look forward to utilizing the scheme as a customer and a builder.

Ben Wallace, the secretary, explained that it is a critical deliverable from National Shipbuilding Strategy, and we have been committed to collaborating with colleagues in the government and across the industry to accelerate delivery. He also added that the National Shipbuilding Strategy Refresh will help to boost confidence in the UK’s shipyards, permitting them to invest in people and tech to drive productivity in the vital sector of the UK economy.

Shipbuilding is key to the UK, supporting approximately 42,600 jobs nationwide and contributing £2.4 billion annually to the economy. A domestic sector helps support the economy’s export desires, with 95% of the UK’s trade moved by sea. Nusrat Ghani, the Minister for Industry and Economic Security, added that shipbuilding is vital to the UK’s more significant industrial identity. Through this scheme, they are backing more lucrative maritime businesses to be ahead of the competitors.

With next-gen vessels designed and constructed here in the UK, this will boost the high-skilled careers and each company involved in the supply chain for shipbuilding, helping grow the economy.


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