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The Parliamentary Under-Secretary of State for International Trade (Graham Stuart)
It is a pleasure to serve under your chairmanship this morning, Mr Paisley. I am grateful to my hon. Friend the Member for Hertford and Stortford (Julie Marson) for securing this debate and for all the contributions, which were focused on the importance of investment to the livelihoods, the prosperity and quality of life of people in Members’ constituencies and beyond. It is a privilege for me to be able to speak about the role of the new Office for Investment, a joint venture between No. 10 and the Department for International Trade, to cement the UK as a global hub for investment.
The UK’s approach to investment is driven, and needs to be driven, for the reasons that my hon. Friend the Member for Hertford and Stortford laid out, from the top—from the Prime Minister—who is showing the world that the UK is open to investment, and that Global Britain is a vision and a reality, not just rhetoric. As we seek to build back better in the wake of covid-19, we have to use our newfound freedom to go further and faster than ever to drive jobs and growth across the country.
The Government are determined to secure more investment opportunities in order to level up every region and nation of the UK with new jobs and businesses. The Office for Investment is very much focused on the levelling-up agenda, as the whole of Government needs to be.
We do not in any way want to surrender the power, attraction and magnetism of London and the south-east. When I was Minister for Investment, the majority of investments into the regions came as a secondary investment from companies that had previously invested, often, into London and the south-east. This is about keeping the best of what we have. As my hon. Friend the Member for Hertford and Stortford said—she may even have understated the point—not only are we the leading investment destination in Europe, but by size we are probably the most attractive foreign direct investment economy in the world. Only the United States and China-Hong Kong have higher levels of FDI. We know that the FDI tends to lead to more research and development; it leads to more exports; and it leads to higher wages, which we would all support.
The Office for Investment lies at the heart of making that happen, by identifying and tearing down the barriers faced by top-tier investors. It sends a big signal, which is important, and it is tied to the Prime Minister, but the aim is not that it should grow into a behemoth. It is a very small, strategic group, working, through my colleague Lord Grimstone, with DIT, which, in various guises over the years and now as a dedicated trade Department, has been at the heart of delivering the offer to investors. The Office for Investment is bringing that signal, with the imprimatur of the Prime Minister. By being at the top of Government, it brings the convening power that only the Prime Minister’s Office has across the rest of Whitehall. As colleagues have suggested, this is about having a coherent offer. It is pointless to have a great initiative here if a very slow response elsewhere ruins the pitch, which should be carefully crafted and prepared, as my hon. Friend the Member for Hertford and Stortford pointed out.
It is estimated by industry that in the first three months of 2021 alone, the UK FinTech sector—my hon. Friend highlighted the importance of venture—raised more than £2 billion in more than 100 investment deals. How are we going to be successful in the long term? It seems to me that science, innovation and technology—and I would include education in the piece—are at the heart of how we shall deliver competitiveness for the UK in the longer term. That is at the heart of our offer. Venture is so important. Even last year, in the pandemic, we saw another rise in venture investment into the UK. It is creating that science, innovation and culture here, and having a strong educational offer that brings in the brightest people from around the world, that all adds to the UK having a uniquely favourable role to play. Then what is needed is to put in place the funding to make this the best place in the world from which to start one of those businesses and grow to scale.
We want to put in place those factors and the finance. I think that NASA called the growth path for businesses the “valley of death”. We want to ensure that we have all the steps covered going forward. That is why it is so important that we look to partner with others—the Office for Investment plays a critical role in that—and that the Treasury and others show flexibility in the new sovereign investment partnership with the UAE, as my hon. Friend the Member for Hertford and Stortford rightly highlighted. It is precisely in order to put such funds in place to support UK business that the OFI can deliver in a way that we have perhaps not seen before.
The Office for Investment will help drive forward our recovery to the benefit of people up and down the UK. It comprises a crack team of specialists who are working hard to land big investment opportunities. The OFI is there to help influence the overall environment but, in terms of particular projects, it is aimed at the top end. The aim is not to fall. It is working hard to land those big opportunities, while continuing to uphold the highest standards in scrutiny and security. As has been said, officials report directly to my good friend Lord Grimstone, in his role as joint Minister for Investment at the Department for Business, Energy and Industrial Strategy and the DIT. The Office for Investment will bring together the best in the business from across Government and around the country to drive forward our investment-led recovery.
The Office for Investment is already delivering results. It was great to hear from the hon. Member for Strangford (Jim Shannon) about the thousands of jobs that have been created in Northern Ireland, but we want to go further. That is why we are setting up a DIT trade hub in Belfast to ensure that Her Majesty’s Government are working closely with Invest Northern Ireland in a more effective way, to ensure that the global reach of the UK Government and the staff we have in more than 110 countries can maximise the investment that comes into Northern Ireland.
We have seen the UAE investment. We hope we will also see investment from other high-growth markets. If I had to think of what DIT’s fundamental role is, it would probably be hitching or aligning—whatever word we choose—the UK with the fastest growing parts of the world. That is what we have the opportunity to do, and we have to use our flexibility. In the same way that that flexibility has allowed us to lead Europe in vaccines, we have to ensure that every time we make the same brave judgments and create the conditions to deliver success.
I should give my hon. Friend the Member for Hertford and Stortford a minute to reply, but are there any questions I should pick up on?
Graham Stuart
Okay. I think I have touched on the levelling-up point. It is facilitating and helping to package the offer around the country. That is why we have our high potential opportunities scheme, whether that is rail in Doncaster or life sciences in other parts of the country.
I think we have dealt with the fledgling sectors and their importance. I entirely agree with my hon. Friend the Member for Hertford and Stortford. She was right to say it is beyond my purview to set out domestic policy, as DIT is entirely internationally focused. However, I am sure colleagues have heard her recommendations of creating frameworks that incentivise more UK investment in those ventures. My hon. Friend asked how the single front door will be resourced. The OFI will continue to be small, elite and strategic, not a big organisation. It relies for most of the work on DIT and BEIS and other Departments across Government, but has that convening and co-ordinating power, with the authority of the Prime Minister behind it.
I think that is enough from me, Mr Paisley. I am delighted to participate in this debate, and it is fantastic to see colleagues getting behind the Office for Investment and all the opportunities it brings to raise livelihoods and the quality of life across the nation.
Ian Paisley (in the Chair)
As much as I would like to give the Member, Julie Marson, a minute to wind up, I am not able to under the rules for the 30-minute debates. I know she is more than happy with that and does not take it personally from me in the Chair.
Question put and agreed to.