Record Number of Foreign Investment In The UK May Not Last
The department for international trade has found that a record number of investments were made by foreign firms in the UK in the year 2016. Inward investments were up 11% on the previous year with 2,213 in total recorded. According to the data, the UK is the most popular destination in the European Union for overseas firms. There is however new concern over how the UKs vote to leave the European Union will affect future investment decisions. International Trade Secretary Liam Fox commented on the figures saying:
“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 also suggested that 116,000 jobs were created or safeguarded by overseas investments last year. The US accounts for 570 projects making it the biggest source of inward investment, followed by China with 156 and India with 140.
Simon French, chief economist for British stockbroker and investment bank Panmure Gordon said the use of English, attractive taxes, a reliable legal system, and Britain’s membership of 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”, he said.
Currently, the financial year has already seen one high profile foreign deal, with the purchase of a UK computer chip designer ARM Holdings by Japans Softbank for $24 billion.
Contributor: Candy Lebby
August 31, 2016
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