Source · Select Committees · Public Accounts Committee
Recommendation 27
27
Accepted
UK Export Finance offers 'invest to export' products for overseas investors.
Conclusion
UK Export Finance (UKEF) is the UK’s export credit agency. Its products include an ‘invest to export’ offer for overseas investors looking to export from the UK.70 We asked the Department whether it had a good relationship with UKEF and whether UKEF’s products were incentivising new investment into the UK. It told us that it had a well- defined relationship with UKEF structured through a Memorandum of Understanding, a previous recommendation of this committee.71 The Department said that it ensures that the two organisations’ agendas are aligned through integrating senior levels, for example the chair of UKEF sits on the Department’s board.72 The Department also told us that it included UKEF’s guaranteed loans when reviewing what incentives the UK could offer to investors, particularly given the limited grants available to investors.73 62 Q 28; SIU0001, SIU0003, SIU0004 63 Qq 28–29 64 Q 29 65 SIU0003, SIU0004 66 Qq 69–70; SIU0004 67 Committee of Public Accounts, Creation of the UK Infrastructure Bank, Thirty-Fourth Report of Session 2022–23. HC 45, 25 January 2023 68 Qq 17, 20 69 Q 89 70 C&AG’s Report, Figure 6 71 Qq 89, 98 72 Q 89 73 Q 90 Supporting investment into the UK 17
Government Response Summary
The government agrees with the committee's point on ensuring alignment among government bodies supporting inward investment. It commits to undertaking an internal assessment by February 2024 to review existing engagement and recommend any additional guidance required, with work already underway and the Harrington Review investigating improvements.
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.