Corporate report

DBT main estimate 2024 to 2025: explanatory memorandum (HTML version)

Published 17 July 2024

This is an accessible version of the DBT 2024 to 2025 main estimate explanatory memorandum. The PDF version of the DBT main estimates memorandum presents the information using tables and graphics.

1. Overview

Main Estimates are the means by which the government seeks authority from Parliament for its own spending each year. The Main Estimate starts this process and is presented to Parliament at the start of the financial year to which it relates.

The memorandum for 2024 to 2025 provides the Business and Trade Committee with details of the strategic overview and objectives of the Department for Business and Trade (DBT), along with a summary of the key budgets that will enable the new department to achieve those objectives.

This estimate has been prepared during the 2024 pre-election period. Therefore, any references to departmental objectives, priorities or funding decisions reflect those set under the previous government.

1.1 Objectives

DBT’s objectives are as follows:

1. Redraw our rules to ensure businesses thrive, markets are competitive, and consumers are protected.
2. Secure investment from UK and international businesses.
3. Support and promote British businesses to grow and export.
4. Open up new markets for businesses by removing barriers and striking trade deals.
5. Promote free trade, economic security and resilient supply chains.

DBT’s spending plans are designed to support its objectives. Detail of which spending programmes relate to which objectives are given at Section 3.1.

1.2 Spending controls

DBT’s budgets are categorised into spending control totals, for which Parliament’s approval is sought.

The spending control totals on which Parliament votes are:

• Resource Departmental Expenditure Limit (Resource DEL or RDEL) – this budget covers current expenditure and comprises of 2 distinct types of budgets:

  • programme budgets which fund the current expenditure of delivering programmes, including delivery of overseas programmes and associated staff costs

  • administration budgets which fund the costs of running the department (and the costs of running its arms-length bodies) including accommodation and pay

• Capital Departmental Expenditure Limit (Capital DEL or CDEL) – this budget covers expenditure on assets, investment and capital grants, and comprises 2 distinct types of budgets:

  • general capital budgets which fund spend on the purchase and maintenance of assets and capital grants
  • financial transaction budgets which fund programmes that provide financial instruments such as loans or purchase of equity

• Resource Annually Managed Expenditure (Resource AME or RAME) – this budget covers current expenditure that is inherently volatile, or demand-led, meaning that the department does not always have the ability to manage spending

• Capital Annually Managed Expenditure (Capital AME or CAME) – this budget is also for expenditure that is inherently volatile, or demand-led, that relates to investments that will deliver returns or benefits in the future

In addition, Parliament votes on the department’s net cash requirement, which sets the limit on the amount of cash the department can use in 2024 to 2025.

1.3 Main areas of spending

DBT’s control totals are outlined in its 2024 to 2025 Main Estimate.

The following graphics illustrate the components of DBT’s DEL and AME budgets for 2024 to 2025, as set out in the Main Estimate. Following the Machinery of Government change creating DBT, the department inherited an RDEL cash budget baseline of £1,493.0 million. Once net budget cover transfers with other government departments, Reserve claims, budget surrenders, switches and exchanges going through Main Estimates are accounted for, along with DBT’s depreciation ringfence, DBT’s Main Estimate RDEL control total is £1,593.1 million.

Resource DEL: total budget £1,593.0 million, 2024 to 2025

Find information in DBT main estimate 2024 to 2025: explanatory memorandum data tables.

Capital DEL: total budget £1,238.7 million, 2024 to 2025

Find information in DBT main estimate 2024 to 2025: explanatory memorandum data tables.

Resource AME: total budget £471.6 million, 2024 to 2025

Find information in DBT main estimate 2024 to 2025: explanatory memorandum data tables.

Capital AME: total budget £762.2 million, 2024 to 2025

Find information in DBT main estimate 2024 to 2025: explanatory memorandum data tables.

Descriptions of the spending areas

DBT supports businesses to invest, grow and export, creating jobs and opportunities across the country. Below are the descriptions of the spending areas that support DBT’s area of work.

Business Group

Business Group is responsible for DBT’s work with business sectors across the economy to support sectors to invest, grow and export in order to create jobs across the country and includes the Automotive Transformation Fund. The group also sets the overall policy and objectives for the Post Office network.

Competition, Markets and Regulatory Reform

Competition, Markets and Regulatory Reform is responsible for enabling enterprise to flourish in a way that benefits all – businesses, workers and consumers – through policy, delivery and regulation that is pro-growth, proportionate and effective. This includes:

• interventions to tackle economic crime and improve corporate transparency
• audit and corporate governance reform through Companies House
• the Insolvency Service and Financial Reporting Council
• support of an efficient and flexible UK labour market through enforcement of the National Minimum and Living Wages and sponsorship of the Advisory, Conciliation and Arbitration Service
• driving forward work on Retained EU law
• protecting people from product-related harm and support to businesses in product markets through the work of the Office for Product Safety and Standards

Domestic and International Markets and Exports

Domestic and International Markets and Exports is responsible for the delivery of practical support to help businesses grow domestically and in international markets. It provides support for small businesses, including the provision of support through interventions delivered by the British Business Bank. Teams are based across the UK and overseas.

OneHMG Platform Charge

OneHMG Platform Charge provides contribution to the Foreign, Commonwealth and Development Office (FCDO) for their delivery, on behalf of HMG, of the overseas infrastructure which DBT uses to deliver its objectives.

Overseas

DBT has a network of staff in more than 100 countries, led by 9 HM Trade Commissioners (HMTCs). DBT’s overseas network is responsible for supporting UK exports and investment across the world and is responsible for working with partner governments and businesses overseas to support UK trade. HMTCs work closely with HM Ambassadors and High Commissioners, and the wider diplomatic network, to drive forward and coordinate government effort overseas to promote UK trade and prosperity.

Strategy and Investment

Strategy and Investment is responsible for supporting DBT’s work for national security, world events (such as the upcoming Osaka World Expo), Trade Envoys, delivery of analysis and support for ministers in setting and delivering the department’s strategy, working across government to enhance the UK’s investment environment; attracting high-value, high-impact investment through the Office for Investment, while delivering cross-government priorities through attraction and retention of internationally mobile investment.

Trade Policy, Implementation and Negotiations (TPIN), and Economic Security and Trade Relations (ESTR)

TPIN work to balance the UK’s regulatory sovereignty and trade liberalisation, ensuring coherence between the UK’s domestic policy approach and its international economic priorities. This is done by negotiating and implementing trade agreements, developing related domestic regulatory policy and championing free trade.

ESTR is responsible for removing market access barriers, championing the rules-based international trading system, and operating the UK’s trading system. ESTR achieves this by advancing the UK’s interests in international forums, opening new markets for UK businesses, defending UK businesses and protecting the UK’s security, and shaping and strengthening the rules-based system and ensuring compliance.

Corporate Services

Corporate Services are responsible for the provision of digital delivery services, management of the DBT estate, and delivery of other essential corporate support services, including finance, human resources and commercial required for the achievement of DBT’s priority outcomes. Corporate Services oversees the effective delivery of DBT grants to support DBT and wider HMG objectives, while ensuring all schemes and awards meet Cabinet Office grant standards.

Centrally Managed Resources

Centrally held funding is earmarked for specific known risks and pressures, a 2% RDEL contingency, which is below HM Treasury’s consolidated budgeting guidance, and the over-programming of CDEL, which will be managed down through the year.

1.4 Comparison of spending totals sought

The table and chart overleaf show how the totals sought by DBT at the Main Estimate 2024 to 2025 compare with the equivalent at the Supplementary Estimate 2023 to 2024 and the Main Estimates 2023 to 2024.

Find information in DBT main estimate 2024 to 2025: explanatory memorandum data tables.

1.5 Key drivers of spending changes since last year

As outlined in the table above, DBT’s Main Estimate 2024 to 2025 total managed expenditure is £4,099.5 million, which is a decrease of £603.1 million (down 12.8%) from the equivalent Supplementary Estimate 2023 to 2024 budget of £4,702.7 million.

Resource DEL

The reduction in the Resource DEL Main Estimate funding of £373.9 million (down 19.0%) compared with the Supplementary Estimate 2023 to 2024 is because, as is standard practice, additional funding for Post Office redress schemes for 2024 to 2025 will be provided at the Supplementary Estimate 2024 to 2025, and therefore the budget at Main Estimates will be lower. In addition, there is a reduction in the cost of the Energy Intensive Industry Scheme because of the price set for energy by the regulator decreasing.

Capital DEL

The reduction in the Capital DEL Main Estimate funding of £158.3 million (down 11.3%) compared with the Supplementary Estimate 2023 to 2024 is predominantly because of the Supplementary Estimate 2023 to 2024 including funding for demand-led drawdowns on financial commitments undertaken by the British Business Bank. Equivalent drawdowns for financial commitments in 2024 to 2025 will be provided at the Supplementary Estimate, and therefore the budget at Main Estimates is lower.

Resource AME

The reduction in the Resource AME Main Estimate budget of £960.0 million (down 67.1%), compared with the Supplementary Estimates 2023 to 2024, is because of a one-off increase in provisions. At the Supplementary Estimate 2023 to 2024, £761.0 million Resource AME was requested by the department to cover an increase to provisions for the Post Office redress schemes following the announcement of a Bill to overturn Horizon convictions. In addition, there is £118.0 million of investment income from British Business Bank schemes at Main Estimates 2024 to 2025, whereas at Supplementary Estimates there was £62.2 million of investment losses.

Capital AME

The increase in the Capital AME Main Estimate budget of £889.0 million (up 957.5%), compared with the Supplementary Estimate 2023 to 2024 is because at the Supplementary Estimate 2023 to 2024, the department surrendered £893.0 million of Capital AME funding following a reduction to the value of provisions for expected credit losses arising from the British Business Bank’s Bounce Back Loan scheme as there was a higher than anticipated level of repayments of guaranteed loans than previously modelled. This is offset by a small reduction in expected spend.

Further detail on changes in spending detail at sub-head level by spend type are set out in section 2.1.

1.6 New policies and programmes: ambit changes

Since the Supplementary Estimate 2023 to 2024, the following changes have been made to the department’s ambit.

Departmental Expenditure Limit changes:

Change 1:

‘Funding to provide compensation to Group Litigation Order (GLO) claimants who have suffered detriment arising from the errors in the Post Office Horizon IT system or the other matters identified in the relevant High Court judgements.’

has been changed to:

‘Funding to provide redress to claimants who have suffered detriment arising from the errors in the Post Office Horizon IT system or the other matters identified in the relevant court judgements.’

This change was made to extend the scope of the existing Ambit to allow DBT to deliver Horizon-related compensation outside of just the GLO scheme. This change follows Royal Assent of the Post Office Offences Act 2024.

Change 2:

‘Receipts and profit from the sale of surplus land, buildings and equipment; rental income and repayments including from three domestic properties on the estate of the European School of Culture at Culham, Oxfordshire and from the National Physical Laboratory.’

has been changed to:

‘Receipts and profit from the sale of equipment.’

This change was made as the Government Property Agency inherited any former freeholds. DBT therefore no longer receives receipts, profits, rental income nor repayments from any land or buildings.

Change 3:

‘Receipts from licences and levies; Launch Investment receipts; Capital Venture Funds receipts; premium income and other receipts from financial guarantee schemes, and of dividends; equity withdrawals; interest on loans and loan repayments from the Land Registry. Investments; receipts from financial investments made by the British Business Bank; repayment of loans and investments; repayment of capital grants; repayments of grants and contributions; receipts from asset sales.’

This has been changed to:

‘Receipts from licences and levies; Launch Investment receipts; Capital Venture Funds receipts; premium income and other receipts from Financial Guarantee schemes, and of dividends; equity withdrawals. Income from investments; receipts from financial investments made by the British Business Bank; repayment of loans and investments; repayment of capital grants; repayments of grants and contributions; receipts from asset sales.’

This change removes the section on “interest on loans and loan repayments from the Land Registry” as DBT does not receive interest on loans or loan repayments from the Land Registry. 

Change 4:

‘The discharge of liabilities falling to the department in respect of former shipbuilding industry historic claims.’

This has been added to the ambit. This addition was made following the Machinery of Government changes. All matters relating to the British Shipbuilders Corporation (BS), Vosper Gap claims (VG) and National Dock Labour Board (NDLB) now rest with DBT.

Change 5:

‘Trade development and promotion, outward and inward investment, the formulation and implementation of trade policy and remedies, contribution to  the cross government GREAT campaign, Support Trade Remedies Authority as an arm’s length body; including grants, associated capital and other related expenditure and non-cash items, developing trade relationships and supporting supply chain management and resilience, and commencing, pursuing and defending UK trade disputes and UK’s present and future relationship with the World Trade Organization (WTO).’ 

and

‘Contributions to any and all international-focused events.’

have been a concatenated into a single paragraph of:

‘Trade development and promotion, outward and inward investment, the formulation and implementation of trade policy and remedies, contribution to the cross government GREAT campaign and to any and all international-focused events, support Trade Remedies Authority as an arm’s length body; including grants, associated capital and other related expenditure and non-cash items, developing trade relationships and supporting supply chain management and resilience, and commencing, pursuing and defending UK trade disputes and United Kingdom’s (UK) present and future relationship with the World Trade Organization (WTO).’

This change was made as ‘Contributions to any and all international-focused events’ was added to the Ambit at the Supplementary Estimate 2023 to 2024, which requires any additions to be disclosed separately and individually.

Change 6:

‘Activities of UK Government Investments on behalf of the department.’

and

‘Proceeds of Crime income generated in criminal enforcement.’

were included twice in the ambit at the Supplementary Estimate 2023 to 2024. This duplication has now been removed.

Change 7:

‘The appointment of an Official Receiver.’

has been added to the DEL expenditure section of the ambit. This addition was made as there is a possibility that DBT will incur expenditure related to the appointment of an Official Receiver.

Annually Managed Expenditure changes:

Change 8:

‘Expenditure related to the appointment of an Official Receiver with HMT approval.’

has been changed to:

‘The appointment of an Official Receiver.’

This change to the AME expenditure section of the Ambit was made as the possibility of DBT incurring expenditure related to the appointment of an Official Receiver was approved by HM Treasury.

1.7  Spending trends

The graphs below show how the department’s spending and budgets have shifted year-on-year since 2021 to 2022 to deliver the government’s ambitious business and trade agenda.

DEL spending trends

Find information in DBT main estimate 2024 to 2025: explanatory memorandum data tables.

The reduction in Resource DEL between 2021 to 2022 and 2022 to 2023 was primarily because of the one-off funding provided to small and medium-sized businesses during the COVID-19 pandemic. The increase in 2023 to 2024 is predominantly because of increased funding for the cost of the redress schemes relating to the Horizon IT convictions as well as funding to enable Post Office Limited to maintain the current IT platform (Horizon). The current reduction of Resource DEL at Main Estimates 2024 to 2025 is because expected additional funding for Post Office redress schemes will be provided at the Supplementary Estimate 2024 to 2025. This year Post Office redress schemes have been reclassified as Capital DEL, so we expect to see an increase in Capital DEL funding the Supplementary Estimate 2024 to 2025.

Capital DEL was higher in 2021 to 2022 compared with 2022 to 2023 because of non-recurrent funding provided to the British Business Bank and Post Office in 2021 to 2022. Capital DEL subsequently increased in 2023 to 2024 predominantly because of increased funding allocated to the delivery of the British Business Bank’s programmes and the Automotive Transformation Fund. The subsequent reduction at Main Estimate 2024 to 2025 is because of additional top-up funding being allocated in 2023 to 2024 to cover the British Business Bank programmes. This arrangement is part of the Bank’s financial framework.

AME spending trends

Find information in DBT main estimate 2024 to 2025: explanatory memorandum data tables.

The increase in Resource AME between 2021 to 2022 and 2022 to 2023, and 2022 to 2023 and 2023 to 2024, was predominantly to cover an increase to the value of provisions for the Post Office redress schemes, and fair value losses relating to the British Business Bank investments. These were one-off increases, so the subsequent reduction at Main Estimates 2024 to 2025 is because there were no further changes to provisions in 2024 to 2025. In addition, there has been an increase in fair value gains of the core British Business Bank programmes, as well as scheme lender fee income from the COVID-19 guarantee schemes.

Capital AME in 2021 to 2022 was low as the value of provisions made in the previous financial year relating to COVID-19 business loan guarantees offered by the British Business Bank was significantly reduced. In 2023 to 2024 COVID-19 business loan repayments were higher than anticipated, resulting in a reduction of CAME. The subsequent increase at Main Estimates 2024 to 2025 is because of a decrease in the fair value of investments held by the British Business Bank investment schemes.

1.8  Administration costs and efficiency plans

Find information in DBT main estimate 2024 to 2025: explanatory memorandum data tables.

The Resource DEL Admin reduction of £155.1 million at the Main Estimate 2024 to 2025, compared with the Supplementary Estimate 2023 to 2024, was predominantly because of additional funding sought at the 2023 to 2024 Supplementary Estimate for the Post Office Horizon Inquiry and delivery of the Group Litigation Compensation Scheme, one-off costs associated with the creation of the new department and the switching of Resource DEL Programme to Resource DEL Admin to be held in contingency to fund emerging pressures. For 2024 to 2025, further Resource Admin funding will be allocated at the Supplementary Estimates 2024 to 2025, including for the administration of the Post Office Horizon Inquiry and Horizon related redress Post schemes.

1.9 Funding: spending review and budgets

A Machinery of Government (MoG) change was announced on 7 February 2023 to form the new Department for Business and Trade, bringing together the business-focused functions of the former Department for Business, Energy and Industrial Strategy (former- BEIS) and the Department for International Trade (former-DIT). The spending plans for the Department for Business and Trade have been incorporated in this Main Estimate 2024 to 2025.

In addition to the MoG changes, further funding was allocated to DBT:

• Future Fund Breakthrough: additional funding of £50.0 million in 2024 to 2025 was announced on 22 November 2023 for the British Business Bank’s Future Fund breakthrough programme which encourages private investors to co-invest with government in high-growth, innovative firms

• Long term Investment for Technology and Science (LIFTS) was announced on 22 November 2023 as a new £250.0 million scheme to establish new funds or investment structures to crowd in UK institutional investment; £31.0 million CDEL is being committed in 2024 to 2025

Full details of all the Main Estimate 2024 to 2025 adjustments relating to DBT are set out in Table B at the end of this memorandum.

1.10 Other funding announcements

There have not been any other major spending announcements relating to DBT’s budgets for 2024 to 2025.

2. Spending detail

2.1 Explanations of changes in spending

DBT has 3 estimate rows in the Main Estimate presented by HM Treasury to the House of Commons:

• DBT – Department for Business and Trade (DEL)
• DBT – Department for Business and Trade (AME)
• ALBs – Arm’s Length Bodies (ALB)

The tables below provide the Committee with a more detailed breakdown of the department’s budget by sub-head.

Resource DEL

The table below shows how DBT’s spending plans for Resource DEL at the Main Estimate 2024 to 2025 compare with the Supplementary Estimate 2023 to 2024.

The notes accompanying the tables overleaf provide further details where changes to budgets from the equivalent Supplementary Estimate 2023 to 2024 to Main Estimates 2024 to 2025 are greater than 10% and £10.0 million, or greater than 5% and £200.0 million. Further budget detail is provided in Annex A, Table A.

Find information in DBT main estimate 2024 to 2025: explanatory memorandum data tables.

Note 1

The £18.7 million (20.4%) increase in Resource DEL funding for Strategy and Investment is primarily because of an increase in funding in 2024 to 2025 for the Osaka World Expo. This is made up of an £8.5 million budget exchange whereby funding was moved from 2023 to 2024, to 2024 to 2025, to align with the latest delivery profile, and £14.6 million of budget cover transfers received from other government departments.

Note 2

The £64.2 million (18.0%) reduction in Resource DEL funding for Competition, Markets and Regulatory Reform is primarily because of a reduction in funding requirements for the Insolvency Service and Companies House totalling £54.0 million. This funding is no longer required, as it is instead being raised by an increase in fee income following the implementation of the Economic Crime and Corporate Transparency Act.

Note 3

The current £359.9 million (65.0%) reduction in Resource DEL funding for Business Group is predominantly because of the inclusion of £373.4 million of reserve funding at the Supplementary Estimates last year. This reserve funding covered redress to sub-postmasters and support for the Post Office Limited to replace the Horizon IT system. For 2024 to 2025, further funding required for redress schemes will be provided in Supplementary Estimates 2024 to 2025, as is usual where spend across financial years is uncertain. Funding for redress to sub-postmasters has been reclassified as Capital DEL from 2024 to 2025.

Note 4

The £63.8 million (24.0%) reduction in Resource DEL funding for Grants Delivery is mainly because of a reduction in the Energy Intensive Industry Scheme from £240.0 million in 2023 to 2024 to £175.0 million in 2024 to 2025. This is because the price set for energy for businesses has been lowered by the regulator.

Note 5

There is a £106.3 million (122.2%) increase in Resource DEL funding for Centrally Managed Resources (CMR). The CMR budget is made up of ringfenced depreciation, funding that is earmarked for specific issues or pressures, and £29 million of contingency retained within the department to manage further unforeseen pressures that may emerge in year. Over the course of the year, these budgets are allocated out as required, reducing the level of contingency required by the Supplementary Estimate.

Capital DEL

The table below shows how DBT’s spending plans for Capital DEL at the Main Estimate 2024 to 2025 compares with the Supplementary Estimate 2023 to 2024.

Find information in DBT main estimate 2024 to 2025: explanatory memorandum data tables.

Note 1

The current £95.3 million (14.8%) reduction in Capital DEL funding for Domestic and International Markets relates to the timing of demand-led drawdowns on financial commitments undertaken by the British Business Bank (BBB). Each year, at the Supplementary Estimate 2023 to 2024, DBT works with HMT and the BBB to include additional funding at the Supplementary Estimates, if required. We will go through the same process at Supplementary Estimates 2024 to 2025.

Note 2

The £100.0 million (138.5%) reduction in Capital DEL for Centrally Managed Resources is because in 2023 to 2024 the department held a contingency budget to deal with uncertain or unexpected Capital DEL pressures. In 2024 to 2025 by contrast, the negative budget represents a small degree of over-programming in DBT Capital DEL budgets.

Resource AME

The table below shows how DBT’s spending plans for Resource AME at the Main Estimate 2024 to 2025 compare with the Supplementary Estimate 2023 to 2024.

Find information in DBT main estimate 2024 to 2025: explanatory memorandum data tables.

Note 1

The £149.3 million (327.2%) reduction in Resource AME funding for Domestic and International Markets and Exports is predominantly due to £118.0 million of income at Main Estimates 2024 to 2025 from British Business Bank investments and income from the COVID-19 guarantee schemes, whereas at Supplementary Estimates there were £62.2 million in fair value losses.

Note 2

The £760.1 million (99.9%) reduction in Resource AME for Business Group is because in 2023 to 2024 there were one-off increases to the value of provisions for the Post Office redress schemes and British Business Bank fair value investment losses. There has been a further increase in fair value investment gains of the core British Business Bank programmes, as well as scheme lender fee income from the COVID-19 guarantee schemes.

Note 3

The £57.9 million (100%) reduction in Resource AME for Centrally Managed Resources is due to the department not holding any AME funding centrally. At Supplementary Estimates 2023 to 2024, AME budget was allocated to Centrally Managed Resource to manage any unexpected AME pressures on redress schemes related to the Post Office. AME is inherently volatile, and the department will confirm the expected requirement for 2024 to 2025 at the Supplementary Estimate 2024 to 2025.

Capital AME

The table below shows how DBT’s spending plans for Capital AME at the Main Estimate 2024 to 2025 compare with the Supplementary Estimate 2023 to 2024.

Find information in DBT main estimate 2024 to 2025: explanatory memorandum data tables.

Note 1

The £893.0 million (100%) increase in Capital AME for Domestic and International Markets and Exports is because at Supplementary Estimates 2023 to 2024, the Department surrendered the provision it earmarked for anticipated losses arising from the British Business Bank’s Bounce Back Loan scheme as there were higher levels of repayments of loans than previously modelled.

2.2 Restructuring

The Office for National Statistics have reclassified all redress payments made to postmasters from Resource DEL to Capital DEL. This means that all future redress payments will be Capital DEL.

2.3 Ringfenced budgets

Within total budgets outlined, there are a number of ringfenced budgets, that is reductions in spend within these budgets may not be used to fund pressures on other budget lines without express permission from HM Treasury.

Find information in DBT main estimate 2024 to 2025: explanatory memorandum data tables.

2.4 Changes to Contingent Liabilities

For the Main Estimates, there have been no changes to existing contingent liabilities since the Supplementary Estimate 2023 to 2024.

3. Priorities and performance

3.1 How spending relates to objectives

DBT’s spending plans support the delivery of its objectives as indicated below:

Find information in DBT main estimate 2024 to 2025: explanatory memorandum data tables.

3.2 Measures of performance against each priority

DBT’s internal Outcome Delivery Plan for 2024 to 2025 includes performance metrics by which progress against each priority can be assessed, as presented below. These indicators will be used for governance processes and reported in the 2024 to 2025 annual report and accounts.

1. Redraw our rules to ensure businesses thrive, markets are competitive, and consumers are protected.

• National Living Wage as a percentage of median earnings

• percentage of UK consumers reporting confidence that products sold in the UK are safe

• Business Perceptions Survey - percentage of businesses who see regulation as a barrier to success

• percentage of businesses that cite regulations or red tape as a major obstacle

2. Secure investment from UK and international businesses.

• UK inward FDI stock (£)

• Gross Value Added of supported FDI projects (£)

• value of supported foreign indirect investments (FII) (£)

• number of new FDI jobs supported, landing outside London and the southeast of England – including by UK nation and region

• number of FDI projects supported by DBT which are aligned to net zero

• business investment as a percentage of gross domestic product (GDP)

• number and value of seed, venture, and growth stage deals for calendar year

3. Advise, support and promote British businesses to grow and export.

• rate of employment scale ups (from ONS data)
• percentage of small to medium enterprises (SMEs) that are happy to use external finance to help business grow, including by UK nation and region
• percentage of SMEs giving an 8 to 10 impact score for access to finance as an obstacle to running their business as they would like in the next 12 months, including by UK nation and region
• stock of finance and number of SMEs supported by British Business Bank programmes (excluding Covid loans)
• stock of finance and number of SMEs supported by Recovery Loan Scheme
• UK Outward FDI stock (£)
• value of outward foreign direct investment supported (£)
• value of exports supported (£)
• export client survey satisfaction rates and number of service deliveries
• total value of UK exports, including by UK nation and region (£)
• utilisation rate of trade preferences for tariff reductions (per cent)
• survey estimates of the barriers faced by UK business to exporting, and the extent to which government services alleviated these barriers
• percentage of businesses that are aware of and utilise UK government trade support services

4. Open up new markets for businesses by removing barriers and striking trade deals.

• number of market access barriers reported and resolved on the Digital Market Access Service
• estimated export value of resolved priority market access barriers (£)
• UK trade with countries with which the UK has concluded a trade agreement as a percentage of total UK trade
• predicted GDP impact of each concluded new free trade agreement (FTA) as per published impact assessment, including by UK nation and region
• reduction in tariff barriers for each concluded FTA as per published impact assessment (%)
• cost reductions related to non-tariff measures for goods and services for each concluded FTA, as per published impact assessment (%)

5. Promote free trade, economic security and resilient supply chains.

• estimate of the percentage of UK exports at risk due to harmful restrictive trade policies
• estimate of the percentage of UK exports at risk due to harmful subsidies
• average amount of time taken to complete trade remedies investigations; the percentage of new investigations completed within the WTO-stipulated timeframe

3.3 Commentary on steps being taken to address performance issues

The department is undertaking action specifically to address performance issues which includes:

Formation of a grant delivery function

To address Public Accounts Committee and National Audit Office concerns, and as part of the Machinery of Government changes, in 2023 to 2024 DBT created a new Grant Delivery Directorate (GDD), which is part of the department’s Corporate Services Group. GDD will ensure that a central expert team is responsible for the design, development and delivery of all DBT grant schemes to consistently high standards, with an enhanced focus on compliance and implementing lessons learned from COVID-19 business grant schemes. 

Counter fraud strategy

The National Audit Office report of December 2021 (Bounce Back Loan Scheme: An Update) recommended that the then Department for Business, Energy and Industrial Strategy produce a formal Counter Fraud Strategy for the Bounce Back Loan Scheme (BBLS). The department has developed an overarching Bounce Back Loan Scheme Counter Fraud Strategy which is driving an extensive programme of activity across the department, the British Business Bank, and other organisations. The department is working with the British Business Bank and lenders to identify and implement additional recovery activities for the BBLS, through a test and trial approach.

3.4 Major projects

The Infrastructure and Projects Authority (IPA) reports on Government Major Projects Portfolio (GMPP) annually. See the latest Infrastructure and Projects Authority Annual Report 2022 to 2023.

The DBT portfolio currently has 2 GMPP initiatives: the Horizon Replacement Programme and the Automotive Transformation Fund.

Horizon Replacement Programme (formerly known as New Branch IT System)

This programme comprises of a series of activities run by Post Office Limited (POL) aimed at replacing the Horizon IT system.

Funding sub-head	Business Group
Onboard start	January 2024
Offboard end	Target March 2030

Automotive Transformation Fund

This programme is part of the Advanced Manufacturing Plan (AMP) and supports investment in developing the end-to-end electrified automotive supply chain in the UK, supporting the government to achieve its targets to support the green industrial revolution and transport.

Funding sub-head	Business Group
Onboard start	Pre-2023 (originally a former-BEIS major project)
Offboard end	Target March 2025

4. Other Information

4.1  Additional specific information required by the Select Committee

The Business and Trade Committee has not requested any particular information which has not been addressed in this memorandum.

5. Accounting Officer approval

This memorandum has been prepared according to the requirements and guidance set out by the House of Commons Scrutiny Unit, available on the Scrutiny Unit website. The information in this Estimates Memorandum has been approved by me as Departmental Accounting Officer.

Gareth Davies

Accounting Officer

Permanent Secretary

Department for Business and Trade

16 July 2024