10

Department's inward investment job forecasts impacted by early dropouts and exclude wider economic impacts.

Conclusion
The Department records potential long-term benefits of inward investment such as the salary level of the jobs expected to be created and export potential, and reports its forecasts of the number of new and safeguarded jobs that are expected to be created or retained over the following three years as a result of investment from FDI projects.21 After our evidence session, the Department wrote to tell us that an estimated 1–1.5% of supported investments drop out in the first 12 months of concluding and that this will have an impact on the Department’s estimates of jobs created or retained over the three year period.22 In addition to jobs directly resulting from investments, the Department told us that there will also be second-order impacts across the UK from building supply chains. But it explained that these impacts are not captured in its statistics because they are very difficult to measure.23
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.

Addressee Bodies
HM Treasury
Timeline
Recommendation age 3.3 yrs
Report published 09 Jun 2023