Government's credit insurance scheme has turned out to be huge flop having serviced just 72 firms with only £18m worth of cover out of a total pot of £5bn.
Introduced in May this year, the top-up scheme was designed to restore the cover of UK businesses who had had theirs reduced back to pre-recession levels. But the scheme is now likely to be curtailed in the forthcoming Pre Budget Report after Business Secretary Lord Mandelson intonated that ministers will not back an extension and said improving market conditions detract from its necessity.
Mandelson laid the blame for the poor performance of the initiative at the feet of the three main insurers that were offering it; Euler Hermes, Atradius and Coface.
“It would have been much better if the three main credit insurers had been more forthcoming in supporting the market for trade credit insurance,” he said.