Source · Select Committees · Public Accounts Committee
Recommendation 15
15
Accepted
Department supports levelling up by prioritising investments across the UK, mostly outside London/South East.
Conclusion
The Department aims to support the government’s levelling up objectives by prioritising investments that promote growth throughout the UK.35 It records the numbers of FDI projects it supports in each region and its forecasts of the number of new jobs each investment is expected to lead to.36 In 2021–22, 57% of projects supported by the Department were based outside London and the South East, 39% of projects were based in London or the South East, and 4% of projects had multiple UK sites.37
Government Response Summary
The government agrees and states that Levelling Up is a key priority. It details several ongoing workstreams to better target support for investment in areas outside London and the South East, including developing regional understanding, working with Freeports and Investment Zones, and promoting High Potential Opportunities.
Government Response
Accepted
HM Government
Accepted
4.1 The government agrees with the Committee’s recommendation. Target implementation date: Autumn 2023 4.2 Levelling Up is a key priority for the department and the department already directs its efforts to encourage investment across the UK. The department’s published inward investment results for 2022-23 shows many areas outside London and the South East have seen significant gains in foreign direct investment compared to previous years. 4.3 Working with the Department for Levelling Up, Housing and Communities and other government departments, the department has several areas of work in progress to better target its support at the geographical areas where investment is most needed. This includes: • working across government and with external experts to develop a deeper understanding of the relative strengths and competitive advantages of different parts of the UK. This will inform not just the targeting of the department’s promotion efforts but also policy development and advocacy efforts, reflecting that for some areas improving their overall business environment can increase their ability to attract investment. • working with UK Freeports to establish each as a national hub for global trade and investment; including support in developing and implementing their go-to-market strategies and providing targeted investment promotion and support services to encourage inward investment. • engaging on the Investment Zones programme; bringing expertise from across the department to help places shape and inform their sector-market focus for investment, and scoping the department’s support for each Investment Zone once they are fully mobilised. • delivering the Key Account Management Programme in the North and Midlands which provides additional targeted strategic account management to regionally important foreign owned companies so that they are retained, grow, and reinvest. • promoting High Potential Opportunities to investors, with 40 out of the 43 opportunities located outside of London and the South East.