Source · Select Committees · Public Accounts Committee
Recommendation 28
28
Accepted
Consider formalising relationships with the UK Infrastructure Bank to enhance investment support
Recommendation
We asked the Department whether it planned to formalise its relationships with the various government bodies that work to support investment through memoranda of understanding as it had done with UKEF. The Department said it did not have current plan to do this, as in some cases it has existing formal relationships with these bodies. However, it does plan to make sure its work to support the UK as a competitive business environment is aligned with its arms-length bodies.74 We encouraged it to also consider its alignment with the UK Infrastructure Bank which it said it had regular interactions with.75 74 Q 98 75 Q 90 18 Supporting investment into the UK
Government Response Summary
The government agrees and will undertake an internal assessment to review its engagement with other bodies supporting inward investment, aiming to recommend any additional guidance needed to support these relationships. It also notes existing close working relationships and the ongoing Harrington Review to improve linkages.
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.