3

The Department for International Trade’s contribution to export performance is unclear because of a lack...

Recommendation
The Department for International Trade’s contribution to export performance is unclear because of a lack of robust metrics. It is important for any public body to be clear about and accountable for what it is trying to achieve, and the criteria it will use to judge whether it is being successful, including performance information that allows Parliament and the taxpayer to understand how effective they are and what impact they are having. However, the government has not set a timescale for achieving its export growth ambition to increase from 30% to 35% of GDP, and the target is dependent on multiple factors such as economic conditions and contributions from other parties including independent efforts by UK industry. The Department measures its annual exports performance through its ‘export wins’ measure but this target does not encourage it to focus on longer-term export growth. The Department was unable to provide us with details of other measures that cover the broad scope of its role in supporting exports, such as removing market access barriers. The Department says that it aims to develop better measures for understanding the impact of FTAs and to help it target specific markets. Recommendation: By the end of 2020, the Department should set out longer- term outcome measures that enable us, Parliament and the taxpayer to hold it to account for its impact on exports, and which capture the full range of its activities to support exports. Measures should include supporting exports, such as removing market access barriers, including better international comparators, the impact of free trade agreements and the number of exporters. DIT’s performance against all measures, existing and new, should be reported transparently.
Government Response
Not Addressed
HM Government Not Addressed
The government disagrees with this recommendation. 3.2 The department already publishes metrics which cover its activities supporting exports, as part of a balanced suite of indicators. Metrics have been identified or are under development for all priority outcomes set out in the 2020 Spending Review: • Secure world-class free trade agreements and reduce market access barriers, ensuring that consumers and businesses can benefit from both • Deliver economic growth to all the nations and regions of the UK through attracting and retaining inward investment • Support UK business to take full advantage of trade opportunities, including those arising from delivering FTAs, facilitating UK exports • Champion the rules-based international trading system and operate the UK’s new trading system, including protecting UK businesses from unfair trade practices. 3.3 The volume of export performance measures has grown in the past year, and DIT publishes information relating to many of the recommended measures. For example, summary data on the department’s work to reduce and remove market access barriers were included in its 2019-20 Annual Report and Accounts and the impact assessment has been published for the UK-Japan Comprehensive Economic Partnership Agreement. The department has also committed to publish impact assessments of all future FTAs and will monitor their implementation through measures such as the utilisation rate of trade preferences. 3.4 The department is committed to developing a better understanding of its impact and contribution to export performance, using long-term measures and international comparators where relevant. DIT is developing a theory of change for the whole department, which demonstrates how trade agreements, trade policy and trade promotion activities contribute to export performance. These underpin DIT’s framework, which includes a range of measures for each objective to provide a balanced scorecard, accounting for known limitations in particular metrics and links our measures to the department’s activities, outputs and outcomes. The department will not commit to publish any specific additional metrics until it is sure that the metric in question is a robust, fair and accurate presentation of the department’s contribution to export performance.
Addressee Bodies
HM Treasury
Timeline
Recommendation age 5.6 yrs
Report published 28 Oct 2020