Source · Select Committees · Public Accounts Committee
Recommendation 16
16
Accepted
Department lacks complete overview and accurate data on industry support spending
Recommendation
The Department does not have a complete overview or accurate data on what it, and wider government, spends on supporting industry. The Department found it difficult to readily provide the NAO with a breakdown of its support for industry. It does not routinely categorise the composition of its support, for example by sector or support type, and it holds a limited understanding of initiatives delivered by other government departments and arms-length bodies and public entities such as the British Business Bank.33 We asked the Department how it could make decisions about the right kind and level of support to different sectors, if it does not know the current level and composition of its support. The Department did not clearly articulate why it lacked this information, instead noting that interventions to support industry were designed to address specific policy challenges. The Department told us that interventions under £20 million were considered by its grants delivery team, and interventions over this amount were considered by its Investment Committee using HM Treasury’s five principles.34 33 C&AG’s Report, paras 1.16-1.18 34 Qq 65-67 12 2 The forthcoming Industrial Strategy Trade-offs and transparency in decision-making
Government Response Summary
The government will collaborate across government and public bodies to enhance tracking and reporting of support to the Industrial Strategy sectors, refine sector definitions, and conduct strategic analysis to assess policy effectiveness and economic trends.
Government Response
Accepted
HM Government
Accepted
3.1 The government agrees with the Committee’s recommendation. Recommendation implemented 3.2 The UK’s Modern Industrial Strategy was published alongside the Spending Review and its priorities are embedded in departmental budgets for the remainder of this Parliament. Each of the IS-8 growth-driving sectors also has a bespoke 10-year Sector Plan, underpinned by R&D and infrastructure commitments. 3.3 Government departments are required to monitor and evaluate policy delivery and impact. Departments already track their support to businesses; for example, the department can break down its business support grants by sector. The department will collaborate across government and public bodies to enhance tracking and reporting of support to the Industrial Strategy sectors, refine sector definitions, and conduct strategic analysis (e.g. using company microdata) to assess policy effectiveness and economic trends. This analytical programme will