UK Government Investments Annual Report and Accounts 2023-24

UK Government Investments Ltd (UKGI) publishes its annual report and accounts covering the financial year to 31 March 2024.

This past year UKGI has prioritised adapting our delivery to the evolving needs of reorganised departments. We have focused on revamping our ways of working to continue driving expertise in our delivery.

1. UKGI is the government’s centre of expertise in corporate governance and corporate finance. We provide expert advice and leading solutions to translate government decisions into effective outcomes in the national interest.
2. UKGI has continued to operate proactively as a shareholder representative for 24 Arm’s Length Bodies on behalf of nine government departments, which employ over 164,000 people, generate around £33bn of gross income and manage £1.3tn of assets.
3. UKGI remains committed to enhancing its reputation as a centre of expertise for corporate governance across government. For the third consecutive year, we became signatories to the Financial Reporting Council’s Stewardship Code, demonstrating our ongoing commitment to effective stewardship practices.
4. The corporate finance team has been working closely across Whitehall, focusing on economic and national security assessments of transactions and supporting negotiations between government and transacting parties. In the past year, UKGI has undertaken a key advisory role in some of the most high-profile national security transactions facing government, spanning the defence, aerospace, space, telecoms and digital sectors.
5. The Special Situations Group has taken a lead advisory role, supporting departments with high-profile situations and complex challenges as they arise.
6. The government has made progress in its policy to return NatWest Group plc (NWG) to the private sector. UKGI continues to deploy its range of corporate finance expertise to deliver value for money in the disposal of NWG shares, achieving milestones such as a £1.3bn directed buy-back in May 2023. The trading plan, which commenced in 2021, has realized proceeds of c. £5.8bn as at 31 March 2024.
7. Across the 2023-24 financial year, the CLCC team advised on 74 cases across government. Since its inception three years ago, CLCC’s in-house advice has resulted in estimated savings of over £10 million in advisory fees for the government.
8. Last year, CLCC published its annual report, analysing over 1,000 contingent liabilities from 17 departments and providing the first portfolio view of government risk. The report has now been downloaded over 7,000 times. CLCC continued advising on structuring, managing, and charging for contingent liabilities, publishing two guidance notes on risk charging and pension schemes and reviewing nuclear decommissioning costs.
9. The breadth of UKGI’s scope means that the savings and benefits delivered for taxpayers crystallise in various forms. Over the past three years, UKGI has saved the government up to £180m in external adviser fees, a direct benefit of an in-house corporate finance and governance function.
10. UKGI continues to make progress in connectivity, reward and recognition, work-life balance, hybrid working, leadership, and culture. This year UKGI scored highly on inclusivity at 92% in staff survey feedback showing that people enjoy being part of the organisation.
11. UKGI is pleased to have exceeded its formal gender diversity target with 45% of senior management now female, against the Women in Finance target of 40%. The organisation also sustained its target for 10% of senior management identifying from an ethnically diverse background. As of 31 March 2024, the mean gender pay gap was 13.6% (31 March 2023: 6.6%), and the median gender pay gap was 5.3% (31 March 2023: 16.7%). The increase in the mean gender pay gap was driven by a one-off harmonisation exercise to standardise pay terms and conditions across UKGI. The mean and median bonus gaps were 23.5% and 26% respectively (31 March 2023: 19% and 34%). UKGI remains committed to furthering diversity and inclusion.
12. With its culture of support, professionalism, and collaboration, UKGI stands ready to support government departments in delivering their priorities in the coming year.

Charles Donald, Chief Executive of UKGI, said:

“In the past year, UKGI has adapted to the needs of reorganised departments, continuing to develop our expertise. With a focus on learning, collaboration, diversity and inclusion, we stand ready to support departmental priorities and the evolving needs of the new government.”

 

Notes to Editors

UK Government Investments creates value for society from government’s most complex commercial interests.

UKGI acts as shareholder for, and leads the establishment of, UK government arm’s length bodies; it advises on all major UK government corporate finance matters, including financial interventions into corporate structures and corporate finance negotiations; it analyses and advises on the UK government’s contingent liabilities; and it acquires, manages and executes the sale of all significant UK government corporate assets. 

UKGI is owned by HM Treasury and independently managed with a Board comprised predominantly of independent non-executive directors. UKGI works closely with both the private and public sectors, advising and interacting with ministers, Parliament and Whitehall departments. 

For further information contact Tavistock:
[email protected]
David Cracknell – [email protected] – 07703 492 993
Lulu Bridges – [email protected] – 07831 170 364