Source · Select Committees · Public Accounts Committee
Recommendation 18
18
Accepted
Department lacks comprehensive overview of local area strengths for investors.
Conclusion
The National Audit Office found that the Department does not have a clear overview of the relative strengths of local areas across the UK in different industry sectors to help it identify the most suitable projects for investors.43 The Department said that it is fair to ask whether it has a deep enough understanding of the comparative advantages and the real strengths of different areas.44 It addresses this as best it can by trying to ensure that investors are aware of opportunities across the country, including through the ‘investment atlas’ (the Department’s website listing FDI and capital investment opportunities across the UK) but agreed that developing this understanding is a work in progress.45 The role of overseas posts
Government Response Summary
The government agrees and is undertaking several workstreams to develop a deeper understanding of the relative strengths and competitive advantages of different parts of the UK, which will inform targeting of promotion efforts and policy development.
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.