Amidst the competitive threat posed by Joe Biden’s Inflation Reduction Act, the chancellor has asked former business minister Lord Harrington to supervise a review.
This week, the chancellor will unveil a review of the United Kingdom’s foreign direct investment (FDI) framework, as the government scrambles to counteract the impact of Joe Biden’s efforts to boost renewable energy industries.
Lord Harrington, a business minister during Theresa May’s premiership, has been asked by Jeremy Hunt to supervise a comprehensive examination of the FDI regime.
According to one source, the assessment will be made public on Thursday.
In the context of the US government’s Inflation Reduction Act (IRA), which was passed last year and provides hundreds of billions of dollars in tax subsidies to assist in the reduction of greenhouse gas emissions, Mr. Hunt’s decision to commission will be viewed as significant.
Lord Harrington’s assessment is anticipated to include an examination of the Office for Investment (OfI). Which was established in 2020 under the then-trade and investment minister Lord Grimstone.
Since its inception, the OfI has aided to attract more than £10 billion in foreign direct investment to the United Kingdom, in part through extensive deals with Gulf-based investors.
According to an informant, Lord Harrington will compare the United Kingdom’s inward investment promotional activities to those of international competitors such as the United States and Singapore.
His work, which is anticipated to be supported by a commission of experts and to last several months, will contribute to the government’s efforts to demonstrate how post-Brexit liberties can unlock FDI opportunities.
It will presumably investigate areas such as the provision of grant incentives and the OfI’s mission.
According to sources, the concentration will be on the chancellor’s priority industries, such as advanced manufacturing, green industries, digital technology, and life sciences.
