Source · Select Committees · Public Accounts Committee
Recommendation 21
21
Rejected
Investment support remains a low priority in smaller overseas posts.
Conclusion
Support for investment may not be a priority among embassies’ other responsibilities, particularly in smaller posts where there are only one or two investment deals each year. We asked the Department whether all embassies are focused on investment. The Department told us that each overseas post produces a country plan which needs to reflect the trade and investment objectives that the post must deliver.53 The HM Trade Commissioners are the senior officials overseas with responsibility for trade and investment objectives.54 46 C&AG’s Report, para 2.8, Figure 6 47 Q 26 48 C&AG’s Report, para 2.8 49 Q 26 50 Qq 81–83 51 Q 84 52 Q 81 53 Qq 84–85 54 Q 83 Supporting investment into the UK 15 3 Working across government Improving coordination
Government Response Summary
The government disagrees with the conclusion that support for investment may not be a priority for embassies. It explains that investment priorities are aligned and targets agreed annually with HM Trade Commissioners, supported by comprehensive training for overseas staff.
Government Response
Rejected
HM Government
Rejected
5.1 The government disagrees with the Committee’s recommendation. 5.2 The department recognises the concern and wants to reassure the Committee that senior Foreign, Commonwealth & Development Office (FCDO) leaders in overseas posts play an important role in delivering the government’s investment ambition. Through the annual investment business planning process, the department ensures that investment priorities align to the strategic direction set by ministers, and investment targets are agreed directly with His Majesty’s Trade Commissioners (HMTCs). HMTCs articulate key investment objectives and delivery strategies for their respective regions in Regional Trade Plans (RTPs). RTPs are internal business planning documents (due to the level of detail requested), however they are recognised in the public DBT Outcome Delivery Plan for Investment. 5.3 HMTCs collaborate at a local level to consolidate country plans into their broader RTP, delivery against their investment ambitions is monitored through the department’s investment governance structure which reports to the Direct General for Strategy and Investment. This ensures a consistent and strategic approach across multiple markets and accountability for performance at monthly Investment Governance Boards. 5.4 The department agrees with Committees’ assessment that it should invest in learning and development. The department is doing this through the Investment Academy training offer, delivered by an outsourced provider, therefore department takes a proportionate approach to ensure value for money. 5.5 Since the report, the relationship between DBT UK and overseas teams on investment has been strengthened, with a renewed focus on training and building knowledge of regional strengths post-COVID-19 pandemic. In person and online engagement on the High Potential Opportunity (HPO) programme, which highlights strategic and commercially attractive Foreign Direct Investment (FDI) opportunities with a focus outside of London and the South East. Further engagement will ensure the department’s teams at post promote opportunities for investment throughout the UK. 5.6 The government disagrees with the Committee’s recommendation. 5.7 The department provides a core investment training offer through the Investment Academy, a programme designed to equip colleagues with the skills, knowledge and tools to deliver on the department’s investment ambitions. The programme is aimed at all colleagues in the department’s investment network, including those based in embassies and consulates general around the world. The programme is delivered virtually using Microsoft Teams, allowing colleagues based around the world to participate remotely. Programme content covers, among other topics, the foundational principles of inward investment, the key sales messages of the UK as an investment destination and the UK’s strategic priorities alongside technical skills such as account management. 5.8 The Investment Academy (IA), previously FDI Academy, was launched in December 2019, running for over 3 years and delivered as part of the Ernst and Young Investment Services Team contract. From September 2023 the (IA) contract will be held by OCO Global, the average annual cost across the 5-year contract is £211,277.06. 5.9 The department delivers ‘pre-posting’ training on its priority objectives to new Heads of Mission and Deputy Heads of Mission and provides updates as part of regular FCDO leadership conferences. The department and FCDO staff overseas have access to the Trade Faculty learning catalogue and the cross-government International Trade Profession syllabus to support broader and deeper skills on trade and investment.