FOI reveals central pillar of UK's new foreign direct investment strategy to launch in 'next few weeks'

A Freedom of Information (FOI) request by law firm Irwin Mitchell has revealed the central pillar of the Government’s new foreign direct investment (FDI) strategy will launch in the next few weeks.

The Ministerial Investment Group (MIG) was announced six months ago and experts at the law firm are calling on it to focus on its purpose, and make the UK’s approach to FDI more disciplined, targeted, and coherent, Irwin Mitchell said in a statement on 22 May.

Following the government commissioned Harrington Review which criticised the UK’s approach to FDI, the Treasury announced during the Autumn Statement that it would create the Ministerial Investment Group. Chaired by the Chancellor, its aim is to help drive forward the government’s strategic approach to FDI and it is a key strand running through four the six government responses to the Harrington Review.

Following a FOI request, the Treasury has confirmed the first meeting is due to convene in late Spring, adding that this follows work by departments to establish effective terms of reference, governance, and a policy programme for discussion.

Bryan Bletso, partner at Irwin Mitchell and a specialist in advising overseas businesses that are looking to invest in the UK, said: “The Ministerial Investment Group represents a consistent element present in the majority of policy declarations issued by the government following the Harrington Review. Whether it’s driving forward the government’s strategic approach for the delivery of its five priority growth sectors, or improving the business environment for investors, it represents a step change in the UK’s approach to FDI.

“When the MIG was announced, the government said it recognised its approach to FDI had to change. This shift requires a new approach and it’s vital this new group focuses on its original purpose which is to support the government to be more disciplined, targeted and coherent when it comes to FDI.”

MIG aims to enhance the government’s strategic approach to investment, expedite investment opportunities, and increase foreign investment levels. It will be supported by senior officials responsible for implementing decisions and ensuring accountability across departments. The investment promotion operation will become more disciplined and targeted, focusing on key sectors and personalised account management for strategically important investors.

It will also drive forward the government’s strategic approach for delivery, building on the government’s previous work across its priority growth sectors, such as: Green Industries, Advanced Manufacturing, Life Sciences, Digital Technology and Creative Industries.

FDI refers to an investment in an enterprise operating in a foreign economy, where the purpose is to have an ‘effective voice’ in the management of the organisation. According to the latest ONS data, FDI into the UK has increased year-on-year for a decade to stand at over £2 trillion by 2021.