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The Department informed us that it has a “raft of other measures” that it could...

Conclusion
The Department informed us that it has a “raft of other measures” that it could be measured against, including international comparators. It highlighted its ‘export wins’ measure, which is the value of exports that it thinks it has directly contributed to, as determined and agreed by the companies that it has helped.28 However, the Department’s annual export wins target has limitations because it focuses efforts on short-term export support rather than on longer-term activities that are needed to grow exports. Activities that require a longer timeframe (for example, building capacity in domestic supply chains and understanding the impacts of addressing market barriers) are not currently captured in the Department’s metrics.29 The Department said that there may not be a single measure that provides a link between its own contributions, export performance and UK prosperity. It plans to develop new performance metrics that will help it to understand the impact of Free Trade Agreements (FTAs), and to segment and target support better to individual companies.30
Government Response
Not Addressed
HM Government Not Addressed
3. 1 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