The Prime Minister has agreed a machinery of government change affecting the Shareholder Executive and UK Financial Investments.
Responsibility for the Shareholder Executive will transfer from the Secretary of State for Business, Innovation and Skills (BIS) to the Chancellor of the Exchequer upon creation of the new vehicle. A new government-owned company (“GovCo”) , wholly owned by HM Treasury, will be formed to oversee the activities of both the Shareholder Executive and UK Financial Investments.
The Shareholder Executive will retain its current operating model whereby it acts directly for departmental secretaries of state and permanent secretaries in its governance and corporate finance activities.
The change in overall reporting and governance regime will have no direct influence on this activity. This means that departments may continue to use Shareholder Executive staff exactly the same way that they use departmental staff and that there will continue to be direct access to ministers and senior officials.