CBM urges government rethink on Trade Credit Reinsurance

The Confederation of British Metalforming (CBM) has been lobbying Whitehall to extend the support until the end of the year to help companies fighting back from Covid in the face of rising material prices, paying back debt from the pandemic, and navigating the end of furlough.

CBM president Steve Morley said removal of the intervention will see insurers remove credit insurance that covers manufacturers from the threat of bad debt.

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“This is the biggest threat to industry’s recovery, it’s as simple that,” Morley said in a statement. “There are lots of positive signs around volumes, new car model introductions and of course the emergence of the UK’s electrification industry. However, firms are still finding it really tough, and they need protection against bad debts from their customers and their invoice discounting facility, which can be affected by the removal of credit insurance.”

He continued: “The government scheme gave insurers the confidence to cover manufacturers and we are already seeing examples of these same insurers withdrawing cover now that the deadline of June 30^th is approaching.