Source · Select Committees · Public Accounts Committee
Recommendation 16
16
Accepted
Historical bias towards London in inward investment job forecasts now addressed by proactive promotion.
Conclusion
We asked the Department why there is such a bias towards London in the number of jobs forecast to be created, noting that for London this figure is 16,000, which is more than the combined total for Scotland, the north-east of England, north-west England and Yorkshire and the Humber.38 The Department said that in the past, the support it offered was reactive to where businesses wanted to invest. This was often in London and the South East because these were the areas overseas investors knew most about, but now the Department identifies and promotes opportunities across the country.39
Government Response Summary
The government agrees that Levelling Up is a key priority and describes several initiatives to better target investment support and promote opportunities across the UK, thereby addressing the historic bias towards London and the South East.
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.