Record Number of Foreign Investment Projects in the UK
According to government figures, the UK has seen a record number of investments made by foreign firms in the year to April 2016.
The Department for International Trade recorded 2,213 inward investment projects, up 11% on the previous year.
This data shows the UK is still the most famous European Union destination for overseas firms, however there is a concern over how the UK’s decision to leave the European Union will affect this in the future.
International Trade Secretary Liam Fox said:
” These impressive results show the UK continues to be the place to do business.
We’ve broadened our reach with emerging markets across the world to cement our position as the number one destination in Europe for investment.”
The report showed that 116,000 jobs were created by overseas investment last year.
The US remains the biggest source of inward investment with 570 projects, followed by China with 156 and India with 140 projects.
Chief economist for Panmure Gordon, Simon French said a reliable legal system, use of english, attractive tax rates and Britain’s membership with the European Union were factors that have made the UK an attractive location for foreign investors.
“What will be far more important than Brexit will be whether the political forces that shaped the vote to leave also put pressure on the UK to be a more closed/protectionist nation. This would have much larger (negative) ramifications for future inward investment flows”
– Simon French