Why are foreign investments in the UK rising?

Is it just the weather?

There is some good news for the UK taxman this summer. First, the country actually had a summer. It even fell on a Sunday, as a colleague pointed out. Second, according to the Office for National Statistics, this year Brits are happier. The Jubilee played its part, a report suggests.

And this is not all: while Jubileeing first and waiting for RB immediately afterwards, foreign investments have also increased, according to the Inward Investment Report 2012/2013 presented by government agency UK Trade & Investment (UKTI).

The UKTI says that while global Foreign Direct Investment inflows declined by 18 per cent, inflows into the UK experienced a 22 per cent year on year increase.

"The UK has received a major vote of confidence from foreign investors confirming that the UK remains a world leading business destination,” says Trade and Investment Minister Lord Green, adding that "attracting foreign investment is an important element of the UK Government’s economic and growth programme."

Between Olympic and Royal fever the UK reached the peak of its marketing capabilities in the past two years. But what supported this powerful business card?

The World Bank ranks the UK among the top countries for ease of doing business. It considers elements such as the 13 days on average to set up a business or the 24 hours necessary to register a company.

The UKTI claims that the removal and reduction of "red tape’" has already saved UK-based businesses approximately £1bn in the last two years. It also highlights the advantages of a flexible labour market and of a "highly competitive tax environment", with the main rate of corporation tax being reduced to 21 per cent in 2014 and 20 per cent in 2015 – the lowest rate in the G7 and the joint lowest in the G20.

A sunny picture to indulge in during the summer.

The strengths of this chapter of the UK economy are reflected in the identikit of its main investors: North America and Japan, but also India and China, across very different sectors. Altogether Britain has attracted 1,559 projects, 11 per cent more than the previous year and the UKTI estimates these investments have generated 170,000 jobs.

Foreigners are particularly keen in investing in software and computer services, which, with 17 per cent of projects, represent the largest slice of the cake. Financial and business services are the second most attractive, but the broad range of investments includes creative and media services, biotechnology and pharmaceuticals and renewable energy.

Emerging economies are investing from scratch and buying British companies, but it’s the comparison with other EU member states that can work as a litmus test of the real strengths of the Brits.

Investments from French and German companies have increased by 43 and 18 per cent respectively.

Despite a 5 per cent reduction, Italy is, together with France, the third foreign investor.

Italians are attracted by the political and economic stability. No wonder, as the waiting for the Royal Baby has been equalled only by the waiting in the past days for the outcome of the final sentence on former PM Berlusconi.

A legislation that encourages innovation is also considered a reason to invest in the UK, together with an open market that makes it easy to access talent.

"Italian companies increasingly see the UK as the ideal destination to grow, succeed and access international opportunities. The exceptional Italian results reflect the capacity for recovery of the country and of its profound entrepreneurial roots, as well as its industrial excellence," says British consul for Milan Vic Annels.

This sounds a bit as if we’ve got it all, apart from a couple of fundamental things, but as our governments are busy at the moment, we’ll come at yours.

Interestingly, the reasons given to support this choice highlight some historical weaknesses of other European countries (it is probably worth mentioning that the UK is in Europe as well) and some historical strengths of the British system more than a renewed economic epiphany.

So, after all this sun, let’s not forget the role of rain in growing awareness: the UK has been dynamic and successful in attracting foreign investors. But this is only a chapter of the economy and the Royal baby is going to cry a lot before becoming a king.

Photograph: Getty Images

Sara Perria is the Assistant Editor for Banking and Payments, VRL Financial News

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Theresa May’s stage-managed election campaign keeps the public at bay

Jeremy Corbyn’s approach may be chaotic, but at least it’s more authentic.

The worst part about running an election campaign for a politician? Having to meet the general public. Those ordinary folk can be a tricky lot, with their lack of regard for being on-message, and their pesky real-life concerns.

But it looks like Theresa May has decided to avoid this inconvenience altogether during this snap general election campaign, as it turns out her visit to Leeds last night was so stage-managed that she barely had to face the public.

Accusations have been whizzing around online that at a campaign event at the Shine building in Leeds, the Prime Minister spoke to a room full of guests invited by the party, rather than local people or people who work in the building’s office space.

The Telegraph’s Chris Hope tweeted a picture of the room in which May was addressing her audience yesterday evening a little before 7pm. He pointed out that, being in Leeds, she was in “Labour territory”:

But a few locals who spied this picture online claimed that the audience did not look like who you’d expect to see congregated at Shine – a grade II-listed Victorian school that has been renovated into a community project housing office space and meeting rooms.

“Ask why she didn’t meet any of the people at the business who work in that beautiful building. Everyone there was an invite-only Tory,” tweeted Rik Kendell, a Leeds-based developer and designer who says he works in the Shine building. “She didn’t arrive until we’d all left for the day. Everyone in the building past 6pm was invite-only . . . They seemed to seek out the most clinical corner for their PR photos. Such a beautiful building to work in.”

Other tweeters also found the snapshot jarring:

Shine’s founders have pointed out that they didn’t host or invite Theresa May – rather the party hired out the space for a private event: “All visitors pay for meeting space in Shine and we do not seek out, bid for, or otherwise host any political parties,” wrote managing director Dawn O'Keefe. The guestlist was not down to Shine, but to the Tory party.

The audience consisted of journalists and around 150 Tory activists, according to the Guardian. This was instead of employees from the 16 offices housed in the building. I have asked the Conservative Party for clarification of who was in the audience and whether it was invite-only and am awaiting its response.

Jeremy Corbyn accused May of “hiding from the public”, and local Labour MP Richard Burgon commented that, “like a medieval monarch, she simply briefly relocated her travelling court of admirers to town and then moved on without so much as a nod to the people she considers to be her lowly subjects”.

But it doesn’t look like the Tories’ painstaking stage-management is a fool-proof plan. Having uniform audiences of the party faithful on the campaign trail seems to be confusing the Prime Minister somewhat. During a visit to a (rather sparsely populated) factory in Clay Cross, Derbyshire, yesterday, she appeared to forget where exactly on the campaign trail she was:

The management of Corbyn’s campaign has also resulted in gaffes – but for opposite reasons. A slightly more chaotic approach has led to him facing the wrong way, with his back to the cameras.

Corbyn’s blunder is born out of his instinct to address the crowd rather than the cameras – May’s problem is the other way round. Both, however, seem far more comfortable talking to the party faithful, even if they are venturing out of safe seat territory.

Anoosh Chakelian is senior writer at the New Statesman.

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