A £1.4bn Brexit opportunities fund launched last year by Rishi Sunak has been criticised as “smoke and mirrors” after an investigation by the Financial Times showed that money was being provided by existing government schemes.
As chancellor, Sunak, now prime minister, announced a “new £1.4bn Global Britain Investment Fund supporting transformative economic activity” in the 2021 autumn Budget.
As part of efforts labelled “seizing the opportunities of Brexit and advancing Global Britain”, the Budget documents stated that the fund “will provide grants to encourage internationally mobile companies to invest in the UK’s critical and most innovative industries, including life sciences and automotive”.
But the FT has found that much of the grants so far have been allocated through existing programmes — albeit with new money added in some cases at the last spending review — effectively rebadging investment under the “Global Investment” banner, with recipients often unaware that they were being supported through the fund.
In a freedom of information request, the FT asked for the beneficiaries of the GBIF, which showed six projects including factories and operations planned by companies, such as sustainable technology manufacturer Johnson Matthey and automotive groups Britishvolt and Ford.
The companies have had funds committed by the Automotive Transformation Fund, a dedicated scheme set up in 2020, as well as from other existing pots of money.
Offshore wind investments have been backed by the offshore wind manufacturing investment support scheme and regional growth funds.
In some cases, the money was committed to the companies even before the launch of the GBIF in April.
www.ft.com/content/807d45c5-1bcd-412c-895b-707353cfae6a