Lord Mendelsohn

At the International Investment Summit, the Prime Minister announced that the Office for Investment would be scaled up to help secure the investment that drive will growth, job creation, and increase productivity across the UK. This brings together DBT and HMT's investment functions into a joint single unit with clear No.10 sponsorship, tasked with promoting the UK to investors and businesses around the world and attracting more investment into the UK. It will be proactive and entrepreneurial, delivering ambitious projects, and the centre of excellence for attracting and growing investments aligned to the Industrial Strategy and HMG Missions.

Increasing levels of foreign direct investment (FDI) into the UK is a priority for this government, given its critical role attracting capital into key growth sectors, creating jobs, and stimulating wider economic growth. The Department for Business and Trade works with all investor-facing business units to deliver support for the highest-value, highest-impact FDI projects into the UK.

Internally, the Department uses a wide suite of metrics, reflecting government priorities and investment impact, to ensure the delivery of our services is aligned to desired outcomes and ambitions.

Office for National Statistics figures show that the UK spent 2.77% of its GDP on research and development in 2022, placing it 11^th amongst OECD countries. The trajectory for public spending on R&D from 2026/27 onward will be set at the Spending Review next year. The Government is focused on ensuring that public investment in R&D drives effective growth outcomes, including growing private sector R&D investment.

Innovate UK supports research and development by SMEs through a diverse range of programmes including the Catapult Network, Launchpads, Investor Partnerships and Business Growth. Over the last 2 years, Innovate UK has awarded £5.2 billion funding to more than 7000 businesses, of which 86% were SMEs.

The Regulatory Innovation Office has been established to update regulation and speed up approvals, allowing SMEs to bring products and services to market faster.

The government also grants R&D tax reliefs rates. Companies doing qualifying R&D continue to receive a cash value of between £15 to £27 for every £100 spent on R&D.

Guidance from the UK Health Security Agency (UKHSA) states that there are very few individuals who cannot receive the COVID-19 vaccines approved in the United Kingdom. Anyone concerned about possible reactions to a vaccine should in the first instance speak to the clinician responsible for their care for advice. Published UKHSA clinical guidance for health professionals and immunisation practitioners on COVID-19 vaccination includes guidance for the management of patients with a history of allergy, including circumstances where a person may be referred to an expert allergist and, after a review of the individual’s risks and benefits of vaccination, and where it is indicated, they could then be vaccinated in hospital under clinical supervision. NHS England will continue to follow this clinical guidance and offer the appropriate vaccination to those who are eligible, including those who are immunocompromised, under expert supervision in a hospital setting, where appropriate.

The UK Health Security Agency (UKHSA) manages the central storage and distribution of COVID-19 vaccines for the United Kingdom’s programme. For the autumn and winter programme, the UKHSA has supplied both the Moderna COVID-19 vaccine (Spikevax) and the Pfizer-BioNTech COVID-19 vaccine (Comirnaty) to the National Health Service.

NHS England works closely with the regional and integrated care board (ICB) teams to ensure they deliver the right vaccine to the right place at the right time. Every ICB has received both vaccines as part of the autumn and winter campaign.

Growth is the central mission of this government, and investment is central to this. This is why we have established the National Wealth Fund, which is expected to catalyse over £70bn of private investment; announced ambitious planning reforms to remove blockages to investment; and put forward proposals to reform the UK pensions system which could unlock around £80 billion of productive investment.

Our modern Industrial Strategy will also set out plans to support investment in growth-driving sectors and, in October, the international business community put its confidence in the UK’s growth potential, committing £63 billion of investment around the International Investment Summit.

The Office for Budget Responsibility (OBR) expects real business investment to grow at 0.8 per cent on average each year between 2025 and 2029.

The OBR also expects the crowding-in of private investment as a result of the public investment announced in the Budget to increase potential output, increasing GDP by 0.4% after ten years, and by 1.4% in the long-run.

Investment is vital for improving growth, and will be central to our ambition to increase the number of good, well-paid jobs and improving productivity across the country.

The government have announced a series of measures to address the issues raised in Lord Harrington’s Review of Foreign Direct Investment. The Prime Minister has appointed a new joint Investment Minister in both HM Treasury and the Department for Business and Trade, and announced the creation of a new, expanded Office for Investment (OfI). The expanded OfI will work to unblock barriers to investment where these arise and proactively drive investment activity cross-government.

This will provide seamless support to our most important international and domestic investors and help turn the Industrial Strategy and regional growth plans into a clear and commercially credible pipeline of investment opportunities.

On 14 October we also hosted our inaugural International Investment Summit, where we were able to announce £63bn of new investment, helping to create around 38,000 jobs.