6
Engage with industry to influence government action on investment barriers and review OFI lessons
Conclusion
Government is not doing enough to ensure that efforts to attract foreign investment are well-coordinated across Whitehall. Other departments and government bodies hold many of the policy levers that influence the attractiveness of the UK to investors, such as tax, regulation, and visa requirements. The Department works with other departments to support investment into specific sectors and shares investors’ views about barriers to investment to help ensure that departments consider investor perspectives in their policy making. OFI’s convening powers, supported by its association with the Prime Minister’s Office in Downing Street, has helped improve cross-government working. The Department also told us it has good relationships with counterparts in HM Treasury, although it would like to do more to influence the Treasury on, for example, providing tax incentives that encourage inward investment. However, some other departments are not receptive when the trade department approaches them. The Department is also looking at how it can improve its processes for working with devolved administrations who have a role in supporting investment into their nations. Some investor and industry representatives believe government could do more to engage with industry and provide greater policy certainty and a consistent approach across government, particularly on nascent technologies. Recommendation 6: The Department should engage with industry and investors to understand what they need from government and consider how it can influence other government departments more effectively to help tackle barriers to investment. It should also review lessons learned to date from the work of the OFI.
Government Response
A response document is linked to this report, dated 24 September 2023. Response attribution to this conclusion has not been verified. Read the response document.
Source
Committee
Public Accounts Committee
Inquiry
Supporting investments in the UK
Report
Fifty-Sixth Report - Supporting investment into the UK
09 Jun 2023
HC 996
Addressee Bodies
HM Treasury
Timeline
Recommendation age
3.3 yrs
Report published
09 Jun 2023