Source · Select Committees · Public Accounts Committee
Recommendation 25
25
Acknowledged
Investors require greater long-term clarity and policy route maps from government.
Recommendation
We received written evidence from investors who wanted more long-term clarity on government policy. For example, the Global Infrastructure Investor Association said there should be greater focus in government on setting out route maps for investors against clear timelines, particularly for new technologies.62 We asked the Department about its relationship with the Treasury, given the need from investors for stability and consistency from government.63 The Department told us it had good relationships with the Treasury and that it worked closely with the Treasury on economic policy in relation to businesses. However, it said it would like more influence with the Treasury than it currently has, though it acknowledged that the Treasury was open to listen to well-evidenced proposals for new policies to support investment into the UK.64 We received written evidence from industry and investor representatives who wanted the government to engage more with industry and investors to identify measures to make the UK more attractive to investors.65 For example, BP suggested that the government should set up a forum with foreign investors in the UK to discuss how to make the UK more attractive to other global investors.66 Supporting the UK’s attractiveness to investors
Government Response Summary
The government agrees with the recommendation and states it actively engages with investors through existing fora like the Investment Council and annual surveys. However, further steps to coordinate investment promotion and set out route maps will be determined and implemented following the conclusion of the Harrington Review.
Government Response
Acknowledged
HM Government
Acknowledged
6.1 The government agrees with the Committee’s recommendation. Target implementation date: April 2024 6.2 The department actively engages with investors to understand what they need from government, and how the department can coordinate action across Whitehall to tackle barriers to inward investment. 6.3 The Investment Council provides a regular forum to gather investor feedback, including from CEOs and company founders. The Council provides a platform to coordinate and aggregate intelligence from investors’ experiences of doing business in the UK into insights that support the department’s policymaking. 6.4 In addition to this, the department’s analytical function surveys investors annually, including on the barriers that investors face. The department is working on improving this process and increasing the response rate. 6.5 Despite this existing engagement, the department recognises that further steps are necessary to coordinate investment promotion effectively across Whitehall. 6.6 The Harrington Review is a key milestone, as one of the key focus areas for the report will examine how the department can extend the benefits of working across government on investment in key sectors. Following the publication of the report in September 2023. The department will look to implement any relevant recommendations. The department has also held workshops with the Office for Investment (OfI) and relevant department teams, particularly in relation to the OfI’s creation and impact on cross-Whitehall working. The department will provide an update to the Committee in the next Treasury Minute progress report on the conclusions of this work, including where these could support the department’s investment promotion efforts in the future. 6.7 Upon the conclusion of the Harrington Review, the department will take further appropriate action to improve the department’s approach to cross-government working on investment promotion.