Part 8: Other Enterprise-Related Provisions UK Government Investments
The Chancellor of the Exchequer and the Prime Minister announced a machinery of Government change to create UK Government Investments Limited (UKGI) in May 2015. UKGI has brought together, into a single corporate structure, the two bodies that currently manage most of the taxpayer stakes in businesses – the Shareholder Executive (ShEx) and UK Financial Investments Limited (UKFI).
	UKGI is a government company (GovCo) - a company formed under the Companies Act 2006 with HM Treasury as its sole shareholder. UKFI already operates as a GovCo which enables it to successfully execute disposals, establishing and maintaining independence and commercial expertise.
	ShEx operations have transferred out of the Department for Business, Innovation and Skills to UKGI and ShEx has rebranded as UKGI. It will continue to offer impartial advice directly to the Secretary of State and Permanent Secretary of the Department that owns the relevant company, asset or project. Since 1st April 2016, UKFI is a subsidiary company of UKGI continuing to operate as it currently does until, in time, it fully merges with UKGI.
	UKGI will be funded centrally from HM Treasury (on behalf of Departments). This section in the Act provides a specific power to allow HM Treasury and Departments to fund and make payments to UKGI. This is in line with the 1932 Concordat between the Treasury and the House of Commons Public Accounts Committee, now reflected in HM Treasury’s manual "Managing Public Money", which requires there to be specific statutory authority for significant items of ongoing Government expenditure.