Recommendation 9

However, the Department only surveys investors who have chosen to invest in the UK. It does not seek views from investors who have decided against investing to find out why they did not. Its survey also has a low response rate.16 The Department’s methodology does not capture its impact on wider strategic objectives such as levelling up, achieving net zero and the UK becoming a science superpower.17 We asked the Office for Investment how it tracks its performance. It told us that it has only worked on around 50 projects so far, so it does not survey investors. It said that its understanding of its impact is mostly based on qualitative feedback and lessons learned exercises conducted after projects are won or lost, on which it also elaborated in written evidence provided after our evidence session.18 We also asked the Department what it is doing to understand how other countries support 7 Foreign Direct Investment is defined as an investment reflecting a lasting interest from a foreign investor or enterprise in a UK enterprise where the overseas investor owns 10% or more of the enterprise and aims to have an ‘effective voice’ in its management. 8 C&AG’s Report, para 3.12 9 Q 25 10 C&AG’s Report, para 12 11 Qq 21, 25, 59–60 12 Q 39 13 Q 61 14 Q 22 15 C&AG’s Report, para 3.16 16 Q 22; C&AG’s Report footnote 10 17 Q 22 18 Qq 47–52; Letter to the Chair of the Public Accounts Committee from Gareth Davies, DBT Permanent Secretary, 20 March 2023 Supporting investment into the UK 11 inward investment.19 It said that it looked at approaches by other countries in 2019, and uses its contacts with investors, multilateral fora and overseas posts to understand how investment promotion agencies in other countries operate.20 Securing long-term economic benefits