Automotive Transformation Fund Programme: Accounting officer assessment 2020 (HTML)

Office for which the accounting officer who produced the evaluation is responsible:

Section for Organization, Electricity and Industrial Approach

Challenge title:

Automotive Transformation Fund Programme

Major scheme task stage:

Whole Organization Case approved by BEIS Portfolio and Financial investment Committee in March 2020 and by HMT in November 2020.


It is ordinary practice for Accounting Officers to scrutinise significant policy proposals or plans to start or differ main assignments, and then evaluate whether they measure up to the expectations set out in Taking care of Community Dollars. From April 2017, the Governing administration has dedicated to make a summary of the important points from these assessments readily available to Parliament when an Accounting Officer has agreed an evaluation of initiatives inside the Government’s Main Initiatives Portfolio.

This Accounting Officer Assessment was manufactured of the Automotive Transformation Fund programme, subsequent its Whole Business Case. I have created the assessment as the Accounting Officer for the Division for Business enterprise, Energy and Industrial System (BEIS).

History and context

The changeover to electrical vehicles (EVs) proceeds to assemble rate. There is a growing demand for EV factors and though the British isles stays an desirable financial investment locale, world level of competition is intense. Escalating a domestic EV supply chain is essential to safeguard trade. It is most likely that substantial ranges of localised information will be required if makers are to meet Regulations of Origin requirements in foreseeable future no cost trade agreements.
The Govt is committed to putting the Uk at the forefront of the style and design and manufacture of zero emission autos, accelerating a United kingdom-built changeover to Net Zero. As section of this, it introduced that new diesel and petrol cars and trucks and vans will no longer be marketed from 2030, and that all new cars and trucks and vans should be thoroughly zero emission at the tailpipe from 2035. At the exact same time Federal government continues to put into practice ambitious innovation programmes in partnership with the Innovative Propulsion Centre, to unlock private initiative in the changeover to EVs.

The Automotive Transformation Fund (ATF), a key pillar of the Government’s approach, aims to aid the development of an internationally aggressive EV source chain below in the United kingdom. It supports late-phase R&D and cash investments across strategically essential areas of the EV offer chain and is expected to create and safeguard work, protected personal expense and help the UK’s function in tackling local climate modify by lowering world wide emissions from the automotive sector. A protected and resilient source chain in the Uk will also assist electric auto companies satisfy Rules of Origin prerequisites.

Evaluation from the Accounting Officer criteria


The ATF is financed from inside of BEIS’ agreed paying out budgets and all commit will be reliable with the Department’s ambit. Money funding is shipped beneath the Industrial Growth Act 1982, the use of which necessitates that the views of the Industrial Improvement Advisory Board (IDAB) and HM Treasury (HMT) consent be sought. The R&D funding is delivered beneath the Greater Instruction and Investigation Act 2017, with grants becoming administered by Innovate United kingdom, and issue to BEIS and HMT approvals. At whole enterprise scenario phase, the target has been on compliance with general public law, subsidy handle and procurement restrictions with person awards beneath the ATF going through unique owing diligence.

General assessment: My assessment is that the regularity take a look at is contented.


At its inception, the proposal was novel and as this sort of Controlling General public Money demanded that HMT approval was secured for the principle to devote (as perfectly as for the price range protect to do so). Accounting Officer, Ministerial, No.10 and HMT acceptance have been secured before the ATF was introduced in September 2019 and the ATF’s Whole Business Circumstance was subsequently accredited by the BEIS Task Investment decision Committee and HMT. Typical assurance and governance exercise guarantees that the fund is dispensed in a fashion that very best fulfills the aims and objectives in the enterprise case. A whole monitoring and evaluation strategy will be agreed and executed enabling the fund’s affect to be assessed at vital intervals over the next 5-8 years.

Total assessment: My evaluation is that the propriety exam is content.

Benefit for income

The ATF seeks to maintain a productive Uk automotive sector by unlocking financial commitment in the EV offer chain. The fund addresses structural weaknesses in the Uk source chain, by bridging sector failures and funding gaps affiliated with investing in late-phase R&D and capital investments. Sector failures resolved include superior barriers to entry and externality consequences.

To tackle these troubles, distinct solutions of funds funds (dependent on distinct quantities of grant and the concentrate on of intervention) were deemed. In appraising the benefit for income of these choices, monetised benefits viewed as include things like the direct employment created in the automotive and electrical devices (i.e. batteries) sectors, indirect work in their respective provide chains, and R&D spillover advantages to United kingdom field. There are also wider positive aspects, this sort of as global CO2 emissions, British isles industrial functionality and broader employment gains that are not monetised inside advantage cost-ratios. Facts for this investigation provided industrial automobile creation forecasts and ONS info, with the evaluation taking into account chance and the additionality of the investments designed through the ATF.

Our evaluation believed that the most popular possibility for the ATF would have a internet present benefit of £0.5 billion, with a benefit-value ratio of 2 and broader non-monetised strategic rewards, (£2 of positive aspects to the British isles economic climate for just about every £1 of HMG price). The evaluation showed that, general, the scheme is expected to symbolize worth for funds to the taxpayer.

This evaluation utilised founded financial appraisal strategies constant with HMT’s Eco-friendly Guide.

The ATF requires a portfolio method, and it is recognised that some initiatives will existing a increased degree of threat provided the phase of marketplace progress/commercialisation of the technological know-how, but this will be balanced by people that are reduce danger. Every grant application will bear robust evaluation by BEIS and suggestions will be sought from IDAB for all grant awards around £5 million. If profitable at the first phase of the levels of competition, an Supply in Principle letter is sent to the firm which features circumstances for the Thanks Diligence work. This begins the course of action by which a 3rd occasion is engaged to verify the positive aspects, minimum amount grant essential and other task distinct situations. The scenario evaluation (like economic appraisal) is recurring based off the new facts and IDAB revisited if necessary. HMT acceptance is required for all grant awards. Grant circumstances will include claw-back again provisions and correct trigger factors, with situations drafted in accordance with the degree of challenge risk.

Rigorous evaluation encompassing on-heading checking and ex-publish analysis is necessary to inform financial commitment conclusions. BEIS has a team which by now provides highly regarded checking procedures which will be applied to the ATF Funds grant recipients. In addition, the Sector Evaluation workforce will commission a scoping examine early in the programme to ensure that checking is in place to enable a sturdy evaluation of the impacts of the programme.

Overall assessment: My assessment is that the worth for income check is glad.


The ATF is shipped by a multi-disciplinary staff within just BEIS and via an exterior delivery partner. These assets are in position and fully funded. The programme has undergone a Challenge Evaluation Evaluation in February 2020 and a Gateway 4 evaluation in August 2020. These critiques recommended that the programme governance constructions be strengthened and that efforts should really be manufactured to raise the programme administration useful resource in the workforce.

Engagement work commenced in earnest in 2020 to far better understand vehicle manufacturers’ sourcing strategies and therefore to establish on and refine the indicative financial investment pipeline integrated in the small business scenario and motivate providers in the essential engineering places of the supply chain to submit expression of desire apps to the ATF.

The programme is on track to produce from the positive aspects set out in its business situation, even though not paying out to spending budget has the likely to impact on the timeframe for benefits’ realisation.

In general assessment: My assessment is that the feasibility examination is contented.


As the BEIS Accounting Officer, I have regarded as this evaluation of the Automotive Transformation Fund programme and permitted it on 30 November 2020.

I have prepared this summary to established out the significant points which knowledgeable my selection. If any of these variables transform materially in the course of the life time of this project, I undertake to prepare a revised summary, placing out my evaluation of them.

This summary will be printed on the government’s web-site (GOV.British isles). Copies will be deposited in the Library of the Household of Commons and sent to the Comptroller and Auditor Typical and Treasury Officer of Accounts.

Sarah Munby
Permanent Secretary, BEIS
30 November 2020

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