Source · Select Committees · Public Accounts Committee
Recommendation 7
7
Accepted
Review government bodies supporting investment and align priorities and formalise working relationships
Recommendation
The recent machinery of government changes provide the Department with an opportunity to review its alignment with other government bodies that support investment. There are various governmental bodies that can support investment in the UK, such as the British Business Bank and the UK Infrastructure Bank. While UK Export Finance (UKEF) is focused primarily on supporting UK exports, it also supports investment through its ‘invest to export’ offer for overseas investors looking to export from the UK. In response to a previous recommendation we made, the Department formalised its relationship with UKEF by introducing a Memorandum of Understanding and by ensuring UKEF is represented on the Department’s governance structures. The Department says it does not plan to have similar MOUs 8 Supporting investment into the UK with all government bodies working on investment, as it will have formal roles with some of them (e.g. the Department is now sponsor of British Business Bank which was previously owned by the Department for Business, Energy & Industrial Strategy), and others, such as UK Infrastructure Bank, are owned by HM Treasury. It is important that the Department develop a strong working relationship with the UK Infrastructure Bank as green inward investments will become increasingly important if we are to meet our net zero targets. However, the Department agrees that it is a priority to ensure that it is aligned with partner organisations that support inward investment. Recommendation 7: The Department should review which government bodies have a role in supporting investment in the UK and consider how it could formalise working relationships, and align priorities and activities in supporting investment. Supporting investment into the UK 9 1 Making an impact
Government Response Summary
The government agreed, noting ongoing work to integrate the new department and existing formalised relationships with devolved governments and local authorities. It committed to undertaking an internal assessment to review engagement with other bodies and recommend additional guidance, while also highlighting the role of the new Business and Growth Group and the Harrington Review in aligning priorities.
Government Response
Accepted
HM Government
Accepted
The government agrees with the Committee’s recommendation. government bodies that support inward investment. The creation of the department earlier this year established a single voice for business inside government, combining the existing business and international trade departments. The development of the department as an integrated department remains an ongoing process, and work to fully incorporate the investment function with other areas is underway. The department will continue to work closely with the devolved governments of the UK to ensure all constituent nations benefit from inward investment. There are close working level relationships, including through the department’s nations teams and these are formalised at the Executive Forum. At a regional level, department officials are working with local authorities to join up trade and investment promotion so a more effective offer can be presented to potential investors. Similar work is ongoing through colleagues focusing on regional investment at the OfI. The department will undertake an internal assessment to review its existing engagement with the other departments and bodies that support inward investment and recommend whether any additional guidance or engagement is required to support the relationship with those organisations. The new Business and Growth Group brings together Permanent Secretaries from across Government and is co-chaired by DBT and HMT. It seeks to align priorities across economic policy, including investment. In addition, the Harrington Review is investigating how to bolster the UK’s investment environment and take advantage of the recent structural changes in government to improve linkages with investor-facing departments such as the Department for Science, Innovation and Technology and the Department for Energy Security and Net Zero.