Source · Select Committees · Public Accounts Committee
Recommendation 8
8
Department acknowledges marginal added value of its inward investment support, despite GVA calculations.
Conclusion
The Department acknowledged that most investment would still happen without its support and that its added value is marginal. It said that businesses would still decide to invest in the UK, but they would find it harder, and some investments would not happen.13 The Department told us that it has calculated the Gross Value Added (the economic impact) of the investment it has supported, and estimates that for every £1 it spends on inward investment, there is an impact of at least between £5 or £6 on GDP.14 The Department also estimates that between 4% and 8% of UK FDI projects would not happen with its support, although it considers this to be a low estimate.15
Government Response
A response document is linked to this report, dated 24 September 2023. Response attribution to this conclusion has not been verified. Read the response document ↗