Source · Select Committees · Public Accounts Committee
Recommendation 26
26
Accepted
Numerous government bodies contribute to the UK’s investment attractiveness beyond core departments.
Conclusion
In addition to the core government departments, there are other government bodies who work on maintaining and increasing the UK’s attractiveness to investors. For example, we recently reported on the creation of the UK infrastructure bank which was launched by the Treasury to encourage private finance alongside public investment, and to achieve two strategic objectives – helping to tackle climate change, and supporting regional and local economic growth.67 Following the recent machinery of government changes, the new Department will have different relationships with some of these bodies.68 For example, the British Business Bank and Companies House are now arms-length bodies of the Department, whereas prior to the changes they were within the Department for Business, Energy & Industrial Strategy’s remit.69
Government Response Summary
The government agrees with the committee's point regarding the department's role in aligning government bodies that support inward investment. It commits to an internal assessment by February 2024 to review existing engagement and recommend additional guidance, alongside ongoing integration efforts and the Harrington Review.
Government Response
Accepted
HM Government
Accepted
7.1 The government agrees with the Committee’s recommendation. Target implementation date: February 2024 7.2 The department has an important role to play in ensuring alignment between the government bodies that support inward investment. The creation of the department earlier this year established a single voice for business inside government, combining the existing business and international trade departments. The development of the department as an integrated department remains an ongoing process, and work to fully incorporate the investment function with other areas is underway. 7.3 The department will continue to work closely with the devolved governments of the UK to ensure all constituent nations benefit from inward investment. There are close working level relationships, including through the department’s nations teams and these are formalised at the Executive Forum. At a regional level, department officials are working with local authorities to join up trade and investment promotion so a more effective offer can be presented to potential investors. Similar work is ongoing through colleagues focusing on regional investment at the OfI. 7.4 The department will undertake an internal assessment to review its existing engagement with the other departments and bodies that support inward investment and recommend whether any additional guidance or engagement is required to support the relationship with those organisations. The new Business and Growth Group brings together Permanent Secretaries from across Government and is co-chaired by DBT and HMT. It seeks to align priorities across economic policy, including investment. 7.5 In addition, the Harrington Review is investigating how to bolster the UK’s investment environment and take advantage of the recent structural changes in government to improve linkages with investor-facing departments such as the Department for Science, Innovation and Technology and the Department for Energy Security and Net Zero.