Last week prime minster David Cameron revealed that foreign direct investment (FDI) into the UK has smashed an unprecedented record and broken the £1trillion barrier for the very first time. This follows the highest number of investment projects since records began in the 1980s and ranks Britain’s performance the highest in Europe and third in the world, close behind the US and China.
The new statistics published by UK Trade & Investment (UKTI) demonstrated that Britain secured the highest number and value of investment projects in 2014 via FDI. This number is estimated to have gone up by around £90billion, sky-rocketing Britain into previously unchartered territory. The UK has been top of the investment destination charts in Europe and the ‘sharp increase’ in net flows during 2014 has not only reaffirmed this position but also lead to an extra boost.
In total, the UK welcomed 1,988 FDI projects over the last year, which demonstrated a 12% increase on the previous financial year. Investment came from more than 70 different countries with the US being responsible for the most projects (564), closely followed by France with 124. China contributed 112 projects which resulted in 6,000 new jobs, while Indian FDI led to the creation of 9,000 new positions.
At the same time as releasing this information, UKTI also announced that it will be delivering a new Global Business Programme in support of UK companies, which is set to bring in £1billion in economic benefit to the country over a period of time.
Overseas investment is hugely instrumental in the success of Britain’s ongoing One Nation Policy, which works towards creating jobs, providing security and creating new opportunities for working people throughout the UK. The record increase in trade has already secured 23,000 jobs and generated a further 85,000 positions.
David Cameron commended these statistics as he prepares to set off for the 2015 Milan Expo where he will be joined by the minister of trade and investment, Lord Maude and a delegation of UK and international businesses.
“The scale of foreign investment is a huge success story which shows that Britain is the place to do business and is more evidence that our long-term economic plan is working.”
Cameron’s optimism has been welcomed by Britain’s business owners who are feeling a little unnerved to say the least at the prospect of a potential Brexit. Should the pending referendum culminate in the country’s withdrawal from the EU, there could be turbulent times ahead for the UK economy and its many small businesses. Read more about that here.