Unlock free Digest editor
Roula Khalaf, editor of FT, chooses her favorite story in this weekly newsletter.
Government departments in charge of attracting internal investment in the UK and promoting British exports are confronted with a significant reduction in the upcoming consumption examination, the Whitehall insiders warned.
The proposed reduction of the ship’s number come despite repeated promises of chancellors and prime minister to attract more investors in UK and enhance economic growth.
One person with the knowledge of discussions said that staff in the business and trade department were warned of a reduction in “30 to 40 percent”, under the proposals for connecting two units involved in the UK promotion as an investment destination.
The other person said that there are plans for a “brutal hairstyle” to export promotional teams in “zero” examination, where the departments must start with an empty leave and justify the level of their staff.
The business and trade department said that “did not recognize” speculation of 30 to 40 percent of the reduction, adding that the final decisions were made at numbers.
However, officials accepted that the examination, which ends in the spring, imposes difficult decisions to all Whitehall departments.
The third person familiar with the procedure said the unions have caused concern for restructuring. The union of public and commercial services, which represents more than 190,000 civil servants, refused to comment.
Officials said that reducing internal investment staff happens in tandem by merging an investment office with 25 persons-healing treasury, number 10 and the bodies of the Business Department founded in 2020 and a much larger DBT investment administration.
Sir Keir Starmer promised last October that he would “step up” and “renew” fromi together meeting Baronessa Poppy Gustafsson, co -founder and CEO of Cyber Security Company Darktrace, as a Minister of Investment.
One person familiar with the restructuring said that the ministers planned to converted to an OFI, who had previously acted like a small team of multiple repair department, into the main agency for promoting investment.
Proposals followed by Lord Richard Harrington’s recommendations in his 2023 Review From the British investment landscape, in which he said that OFI needed “to give him a stronger support than the Central Government” as part of a new business strategy.
Its improved role will also include strengthening relations with regional mayors, using combined authorities to help the production of local investments to attract investors.
Tom Pope, Deputy Chief Economist at the Government Substant Institute, said that after the greater use of mayoral combined bodies to attract direct foreign bodies to attract greater economic logic.
But, he added, there was currently a “capacity gap” in staff and expertise in MCAS to provide ambition.
However, two insiders said that despite their on -the -nedd role, the merger of the OPI -AS will continue to lead to a net reduction in the number of the business department.
“We have been told that this will mean reduced capacity, and there is no expansion of the number or services,” said the director of one body to promote a store in the UK.
Changes in the investment administration have been announced to the staff on the invitation of “All Hands” earlier this month, with a request for “up to 40 percent of hairstyles” in the total number of staff, according to an internal discussion account.
Jordan Cummins, head of the CBI Competitiveness Department, said the challenge was both to strengthen the OFA, while at the same time achieved a reduction in the number in the ward, which was expected as part of the consumption of consumption.
“Deckchair Shiffling as part of a consumption view is just the first step. The second step makes this new body more reactive investors, useful mayors and transparent for companies. This begins that the Minister of Investment sets the vision of what he wants to achieve, “they added.
The UK in the UK is weak because Brexit is G7 countries compared to other countries, and British trade as a GDP share is now 3.5 percent below the pandemic level, and the goods have been reduced by 20 percent in the same period, the National Office states statistics.
British Chamber of Commerce said he wanted to deepen a partnership with a business department to improve export and trade promotion, quoting studies Showing state support to trade has led the companies that they are more likely to export and survive the recessions.
William Bain, head of trade policy in the BCC, said the group would take care of a decrease in promotional export activities. “This is a moment, if you want to increase growth and seek a reversal of recent trade losses, to achieve a target investment in export promotion,” he added.
The Business Department said that increasing trade and investment had a vital role in providing the Government’s economic growth mission, and the department would continue to support the British business of exports and attracting investment.
“We are creating a new investment promotion agency, which will be simplified and well qualified to provide a better service to our key investors and provide the investment that our economy needs to start jobs and growth,” he added.