BEIS and DIT are to merge
Rishi Sunak creates DBT to boost both UK exports and FDI
Will UK exports benefit from the latest departmental reshuffle? On Feb 7th the PM announced the merger of Business, Energy & Industrial Strategy (BEIS) and the Department for International Trade (DIT) into the Department for Business & Trade (DBT). The government says it wants to focus less on signing new trade deals and more on boosting exports and attracting inwards foreign direct investment (FDI). The Institute for Government (IfG) on its live blog discusses the reshuffling where the following changes are being made: The Department for Business, Energy, and Industrial Strategy (BEIS); the Department for Digital, Culture, Media, and Sport (DCMS); and the Department for International Trade (DIT) have all been broken up and reformed. In their place will stand the Department for Energy Security and Net Zero (DESNZ); the Department for Science, Innovation and Technology (DSIT); the Department for Business and Trade (DBT); and the Department for Culture, Media, and Sport (DCMS).
What should we expect following the merging of Business and International Trade into a single department? That may become more apparent at the next budget, but it has been reported that the decision follows judgement that focusing on signing as many trade deals, with some implying very difficult trade-offs for UK industry may not have been the magic bullet that was initially sold to the public in the run up to and aftermath of Brexit. As regards BEIS, the importance of a stand alone national energy strategy seems to have justified the creation of DESNZ.
The elimination of DIT may herald a new era for UK Business
Once International Trade and Business are merged into one department and the merger becomes effective, the interests of UK Business would be expected to be represented as a whole to encompass FDI, International Trade and Business/Industrial Strategy. The regrouping of two departments under one roof might come at a cost of reduced focus on international trade, but we may have to wait to find out how this latest reshuffle translates into effective results on the ground.
Keywords: International Trade, Department for Business & Trade, exports, Foreign Direct Investment, Business, Energy