Yahoo Finance Foreign investment edges down as both parties pitch Britain as global hub
Overseas investors invested in fewer projects than the year before, new figures show, as both parties attempt to make Britain a global hub for international capital.
Figures released by the Department of Business and Trade (DBT) showed that there were 1,555 overseas investment projects in the UK in the 2024 fiscal year.
This was down six per cent on last year’s total of 1,654 and about 30 per cent lower than the pre-Brexit peak of 2,213.
FDI figures include investment where the purpose is to have an ‘effective voice’ in the management of an enterprise, which is generally defined as a 10 per cent stake. It is seen as an important route by which different countries can transfer technology, helping innovation and economic development.
Attracting global investment has been a key aim for successive post-Brexit governments, with Rishi Sunak hosting a Global Investment Summit last November. Labour has also pledged to hold a global investment summit within the first 100 days of office if it is elected.
Recent figures from EY showed that although the UK remained behind France in terms of total FDI projects in 2023, the UK was seeing a faster increase in the number of projects than its major European rivals.
The DBT figures showed that 944 of those projects were funded by existing investors in the UK while 611 were by new investors.
Of all sectors, software and computer services received the most overseas investment. There were 263 FDI projects in the sector, creating nearly 16,000 jobs, but this was well down on last year’s total of 382.
Financial services came in second place this year, attracting 199 projects. This was also down on the 236 projects recorded last year. Environment, infrastructure and transportation meanwhile saw an increase in the number of FDI projects, rising to 163 from 150 last year.
The US was comfortably the highest source of FDI projects, originating 376 separate projects. India came in second place at 108 while France was third in 102.
Within the UK, London received 503 FDI projects over the past financial year, comfortably ahead of every other British region. The South East and the West Midlands both received 133 projects while Scotland received 125 .
