Fifty-Sixth Report - Industrial Strategy Challenge Fund
Select Committee
Public Accounts Committee
HC 941
30 April 2021
Government response
Treasury minutes: Government response to the Committee of Public Accounts on the Fifty-sixth report from Session 2019-21 · published 2 Sep 2021
Recommendations & Conclusions
4 results
14
Conclusion
Acknowledged
We were concerned that lengthy approval times, combined with changes in coinvestment requirements, could deter...
Conclusion
We were concerned that lengthy approval times, combined with changes in coinvestment requirements, could deter participation from some small and microsized companies.39 For example, we received written evidence from Tees Valley Combined Authority which told us that it had submitted …
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Government Response Summary
The government acknowledges the impact of long approval processes and states that future challenge delivery models will consider a streamlined approach with simpler governance. It will also write to the Committee by October 2021 to detail plans for improving the speed of future funding approvals and update on existing improvement programmes.
HM Treasury
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15
Conclusion
Acknowledged
Delays in getting new challenges approved have had a knock-on effect on UKRI’s ability to...
Conclusion
Delays in getting new challenges approved have had a knock-on effect on UKRI’s ability to start spending. For example, in 2019–20, UKRI had underspent by £86 million, equivalent to 14% of its budget for the Fund the year. During 2020–21 …
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Government Response Summary
The government acknowledges the impact of lengthy approval processes and states that future challenge delivery models will consider a streamlined approach with simpler governance. It will also write to the Committee by October 2021 to detail plans for improving the speed of future funding approvals and update on existing improvement programmes.
HM Treasury
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17
Conclusion
Acknowledged
One of the Fund’s five objectives is to increase collaboration between new small companies and...
Conclusion
One of the Fund’s five objectives is to increase collaboration between new small companies and those that are established. Analysis undertaken by the National Audit Office showed that UKRI had initially succeeded in attracting a range of different sized companies …
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Government Response Summary
The government acknowledges the concern regarding SME engagement, stating UKRI is committed to increasing it. Lessons learned will inform the design of future Challenge-led funding, considering a more flexible approach to co-investment for SMEs, and the department will write to the Committee by October 2021 outlining how these learnings will be embedded.
HM Treasury
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21
Conclusion
Acknowledged
UKRI recognised the need to think about R&D expenditure in terms of what it described...
Conclusion
UKRI recognised the need to think about R&D expenditure in terms of what it described as the ‘place part of the agenda’.58 Comparing the distribution of the Fund with what it described as normal R&D expenditure, UKRI asserted that it …
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Government Response Summary
The government acknowledges the importance of R&D funding for the levelling-up agenda and commits to investigating the drivers of regional disparity in funding distribution. It will work to improve participation for future Challenge-led funding, publish a UK R&D Places Strategy in 2021, and write to the Committee by October 2021 on how learnings will be embedded into future delivery.
HM Treasury
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