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Government departments charged with attracting internal investment in the United Kingdom and promoting British exports are facing significant job cuts as part of the future review of spending, have warned Whitehall Insiders.
The proposed head calculations come despite repeated promises from the Chancellor and the Prime Minister to attract more investors in the United Kingdom and increase economic growth.
A person with knowledge of the discussions said that staff at the Department of Business and Trade had been announced for cuts of “30 to 40 percent” calculation, under proposals to unite two units involved in the UK promotion as an investment destination.
A second person said there were plans for a “brutal haircut” to export promotion teams in reviewing “zero -based” expenses, where departments must start with an empty sheet and justify their staff levels.
The Department of Business and Trade said that it “did not recognize” cost speculation of 30 to 40 percent, adding that no final decisions were made at the main points.
However, officials agreed that the review, which ends in the spring, was imposing difficult decisions on all Whitehall Departments.
A third person acquainted with the process said the unions had raised concerns about the restructuring. The Union of Public and Commercial Services, which represents more than 190,000 civil servants, refused to comment.
Officials said cuts for internal investment personnel were occurring at the same time as the merger between the office of 25 investment people-a common treasure, number 10 and the business department organ set up in 2020 and the Directorate much more Great Promotion of Internal Investment at DBT.
Sir Keir Starmer promised last October for “Bolster” and “rebuild” officer along with the appointment of Baroness Poppy Gustafsson, co -founder and chief executive of the Darktrace Cyber Security Company as Minister for Investment.
A person acquainted with the restructuring said the ministers planned to return an officer, who had previously operated as a small team of inter-departmental “fixes” at the main investment promotion agency.
Proposals follow the recommendations of Lord Richard Harrington in his 2023 review of the UK investment landscape, in which he said the officer had to “give stronger support from the central government” as part of a strategy new business investment.
Its increased role will also include strengthening ties with regional municipalities, using combined authorities to help design the country -based investment proposals to attract investors.
Tom Pope, Deputy Economist Chief at the Think-Tank Institute, said he had strong economic logic after the greater use of the authorities combined for mayor to attract FDI.
But, he added, currently had a “capacity gap” in staff and expertise in McAS to give ambition.
However, two interiors said that despite his strengthened role, the union of the officer with the Business Department Investment Directorate would still lead to a net discount of accounts.
“We have been told that it will mean reducing capacity in general, and no expansion of accounts or services,” said the director of a body of promoting regional trade in the United Kingdom.
Changes in the Investment Directorate were notified to staff at a “All Hand” call earlier this month, with a request for “up to 40 percent of hair” in total staff numbers, according to an account of internal discussions.
Jordan Cummins, head of the CBI UK Competition Department, said the challenge was to strengthen the office while also decreasing accounts within the department, which were expected as part of the expense review.
“Shuffling Deckchair as part of the expense review is just the first step. The second step is making this new body more responsible for investors, useful for mayors and transparent for businesses. This begins with the Minister of Investments by defining a vision of what he wants to achieve, ”they added.
UK trade performance has been weak since Brexit compared to other G7 countries, with UK trade as part of GDP now 3.5 percent below pre-Pandemic levels, with exports of goods down With 20 percent for the same period, according to the Office for National Statistics.
The British Chambers said he was seeking to deepen the partnership with the business department in order to improve export and trade promotions, citing studies showing that government support for trade led to companies that are most likely to export and survive recessions.
William Bain, head of trade policy at BCC, said the group would be worried about cuts to export promotion activities. “This is the moment if you want to increase growth and look at the return of the latest trade losses, to make a target investment in promoting export,” he added.
The Business Department said the growth of trade and investment had a vital role in providing the Government of Economic Growth Government and the department would continue to support the British business to export and attract investments.
“We are creating a new investment promotion agency, which will be more effective and capable, to provide a better service to our main investors and to provide the investments our economy needs to promote jobs and Growth, ”he added.
