Question

To ask the Secretary of State for Business, Innovation and Skills, with reference to the Government's press release of 20 May 2015, on machinery of government: Shareholder Executive and UK financial investments, what consultation was undertaken prior to the transfer of the Executive from his Department to HM Treasury; what factors were taken into account in reaching that decision; on what evidence that decision was based; on what date plans were first discussed by (a) officials and (b) Ministers; and when the formal transfer took place.

The decision was taken by the Prime Minister and communicated in May 2015 to merge the functions of the Shareholder Executive and UK Financial Investments (UKFI) in to a new wholly-owned Government Company, UK Government Investments (UKGI). Discussions with staff also began in May and will continue until the transition is complete.

The new company will make it easier for government experts to work together to deliver the sale of a wide range of publicly-owned assets in a way that secures good value for money for taxpayers. It will help the government achieve its aim of running large, publicly-owned delivery bodies more efficiently, as well as learning from private sector expertise in improving the performance of taxpayer-owned assets not being sold.

UKGI will be established in the autumn, with the intention of completing any transfer activity for the start of the next financial year.