Rishi Sunak’s Brexit opportunities fund ‘rebranded existing grants’

Business tired of ‘smoke and mirrors’ over funding, says Labour

Rishi Sunak launched £1.4bn Brexit opportunities fund as chancellor (REUTERS)

Rishi Sunak’s government was accused of “smoke and mirrors” after it emerged that a Brexit opportunities fund used money already committed through other schemes.

Mr Sunak launched a £1.4bn Global Britain Investment Fund (GBIF) in 2021 when he was chancellor aimed at “seizing the opportunities of Brexit”.

But some funding allocated under existing schemes was “rebadged” under the post-Brexit GBIF banner, according to the Financial Times – citing documents shared under a FOI request.

The newspaper said that in at least one case money was committed to a firm before the GBIF was launched in April, though new money was “added in” after the launch of the post-Brexit fund in some cases.

Jonathan Reynolds, Labour’s shadow business secretary, said: “This is yet another disappointment for businesses at a time when clear leadership and stability is a strict necessity.”

The Labour frontbencher added: “This tiresome Tory tactic of smoke and mirrors over real tangible help continues to burden UK businesses with endless confusion and chaos.”

The Department for Business, Energy and Industrial Strategy (BEIS) said new money had been added to funds now counted as coming under the GBIF – but acknowledged that the government had packaged “pre-existing” schemes under a new banner.

A spokesperson for BEIS told the FT that the post-Brexit fund “brought together a number of pre-existing, sector-specific funds under one banner”.

They added: “A significant portion of new funding was agreed for these existing funds in the 2021 Spending Review. It is not the case that all this scheme-specific money was previously announced and then later rebadged.”

Announced at last year’s October Budget, the government said the £1.4bn Global Britain Investment Fund would provide grants to “encourage internationally mobile companies to invest in the UK’s critical and most innovative industries, including life sciences and automotive”.

FOI data reportedly shows grants worth £180m have so far been given to companies under the GBIF.

A BEIS spokesperson said the GBIF was set up “to help drive private investment into industries where the UK has both natural strengths and geographic spread.

“This is reflected in the six grants offered to date, with two grants awarded to projects located in Northumberland and the remaining awards in Wiltshire, Merseyside, Tyne and Wear and Staffordshire.”

They added: “We want to make the UK the best place in the world to start, grow, and invest in a business, as we keep working to grow the economy and create jobs. At the same time, we are committed to ensuring taxpayer money is used responsibly and provides best-value.”