The Department for Business and Trade (DBT) was established in February 2023, combining the functions of the former Department for Business, Energy, and Industrial Strategy and former Department for International Trade.
Eight months after the new department’s formation, department leaders including Permanent Secretary Gareth Davies CB, Director General for Business Sectors David Bickerton, and Director for Core Policy, Delivery and European Union Dr. Gaynor Jeffery OBE joined a cross-sector event at The Whitehall & Industry Group to discuss the role and remit of the department, the challenges and trends in the current business and trade environment, and opportunities for cross-sector engagement.
They were joined by private sector leaders Maria Laine, President UK, Ireland and Nordic Region, Boeing Global and John Godfrey, Director of Levelling Up at Legal & General who reflected on their experiences working with central government departments.
Key Takeaways
- The department’s purpose is to support business to grow, invest, export, and create jobs and opportunities, and to create taxes that fund public services.
- The department supports businesses in navigating Whitehall and the British policy landscape with the goal of creating economic prosperity.
- Strong, lasting relationships with central government departments have enabled decades of investment in the UK from private sector businesses.
- DBT acts as a ‘critical friend’ to be the voice of businesses in government conversations.
- The secret to growth is that it needs to be investment led, as supported by The Office of Investment.
The Role of DBT
DBT’s purpose is to encourage business to grow, invest, export, and create jobs and opportunities and to create taxes that fund public services.
There are three key ways the department seeks to fulfil these aims:
- Open markets domestically to ensure that the UK remains competitive, and attractive to inward investment, particularly in growth areas such as tech industries.
- Open markets globally via free trade deals. Priorities include reviewing the UK’s customs processes, ensuring there are minimal market access barriers, and creating mutual recognition of professional services.
- Provide practical support to businesses. For small businesses, DBT offers export support services and access to capital. For larger businesses, DBT supports them in making strategic investments.
The Biggest Challenges for the UK and the DBT
How do we drive economic growth in the UK? The speakers spotlight three focus areas:
- Creating jobs and opportunities for people
- Helping businesses grow
- Supporting people achieve their aspirations.
A series of shocks in the past 15 years starting with the 2008 financial crisis rattled economies globally. The disruption of the single market for companies followed, then the global COVID-19 pandemic, and finally Russia’s invasion of Ukraine just as COVID-19 restrictions began to lift. The following questions arise:
- How do we balance security concerns with building resilient supply chains?
- How do we protect key industries from competitors without losing the benefits of open trade and free markets?
- How do we tackle a slow-down in productivity?
Investment is key to meeting all the challenges above. Three areas of opportunity were highlighted:
- The creative sector and the UK’s cultural economy – with studios, media businesses and creative hubs across the UK, this is an area where we excel on the global stage.
- Decarbonisation, ‘the challenge of our lifetime’ - as a leader in clean energy, green tech offers a £1 trillion opportunity for the UK if harnessed effectively.
- Our burgeoning tech sector - the UK has an incredible ecosystem for startups, second only to the US and China, supported by government funding of up to £3.5 billion announced earlier this year across R&D projects, quantum computing, and AI.
Opportunities for Cross-Sector Engagement
DBT helps private sector organisations interact with the rest of the central government. The speakers outlined some practical ways the department fulfils this role:
- Critical friend: The department acts as an honest voice with businesses they work with, and strives to be clear on what it can and cannot achieve. This commitment to honesty helps build trust between parties and enables productive relationships. Private sector members noted that a consistent relationship built on trust with central government departments has been vital in their ability to invest and form strategic relationships within the UK.
- Concierge service: Where a business wishes to engage with central government but is unsure which department or person would be best placed, they can reach out to DBT. The department has a responsibility to understand each industry and sector well enough to know who the best person will be to speak to and can provide the right contact.
- A voice for business: The DBT helps bring relevant business voices to conversations across other departments. By really understanding what companies need in order to play their part in growing the UK economy, DBT can filter that information out to other relevant departments.
WIG offers regular events in our trade and international affairs and economic growth and prosperity themes. See a listing of all our upcoming events here.
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