Latest news with #PeterArnold
Scotsman
15-05-2025
- Business
- Scotsman
The UK's commitment to tech and renewable energy innovation is driving foreign investment trends
While macroeconomic headwinds have made 2025 a particularly tricky year for European nations to navigate, the United Kingdom's growing pedigree for attracting foreign direct investment remains a key driver of growth. Sign up to our Scotsman Money newsletter, covering all you need to know to help manage your money. Sign up Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... While the UK is renowned for its retail and financial sectors, it appears to be the nation's commitment to digital and energy innovation that's a draw for foreign direct investment (FDI). According to a recent McKinsey survey, the last 15 years have seen the United Kingdom welcome $1.8 trillion in private equity investments and $950 billion in FDI. Advertisement Hide Ad Advertisement Hide Ad Many foreign direct investors have intended to take companies private or to buy and invest in unlisted firms. As many as 197 UK firms were delisted from the London Stock Exchange due to take-privates between 2016 and 2023, with just two opting to relist in the United States. Renewable Energy Leading Europe for Tech Investment While the Eurozone has struggled to recapture lost momentum due to Germany's economic stagnation, the United Kingdom's innovative tech sector has been a major draw for foreign interest in recent years. In 2023, the UK led the Eurozone with 255 FDI projects focusing on its tech sector, representing a growth of 8.9% on the year before. Over the same period, Europe as a whole experienced a 19% decline. While the United Kingdom has built a reputation for excellence in financial services, the 100 projects recorded over the same period show that although it's the second largest sector for FDI, it trails tech by some margin. Advertisement Hide Ad Advertisement Hide Ad Speaking on the findings, Peter Arnold, EY's UK Chief Economist, suggested that much is owed to a resurgence of digital investment in the United Kingdom, helping to buck a continental downward trend when it comes to investing in tech projects. Energy Draws International Attention Another area in which the UK is excelling in terms of driving foreign investment is through its green energy initiatives. Green energy has proven in recent years that it excels at job creation and economic expansion, with a total of 22,800 net-zero businesses in 2024, with small and medium-sized enterprises (SMEs) comprising 94% of the sector. Collectively, these businesses have put £28.8 billion into the economy, nearly reaching the entire size of Wales's economy. Crucially, the sector also supports 273,000 full-time jobs, surpassing the telecommunications industry. Advertisement Hide Ad Advertisement Hide Ad When factoring in supply chain activities, the net zero sector's economic impact grows to £83.1 billion, supporting almost 951,000 jobs domestically in the process. April also saw the Department for Energy Security and Net Zero announce an initial £20 million investment in 'Starmaker One,' a new fund focused on mobilising up to £150 million in funding for fusion technology in the UK. These initiatives highlight the level of commitment the UK has when it comes to building out its most ambitious industries and attracting funding on an international scale. Welcoming Overseas Investment We're also seeing the United Kingdom level up its infrastructure for welcoming overseas investment. The announcement of a 'concierge service' designed to enhance the attractiveness of the UK as a destination for global financial services echoes a widespread push to navigate regulation and overcome barriers to entry for investors on an international scale. Advertisement Hide Ad Advertisement Hide Ad The move will offer more support for high-growth firms while reducing regulatory reporting, opening the door to reducing compliance costs through technology. These initiatives will be highly appealing to businesses seeking to embrace the UK's burgeoning tech and clean energy sectors. Whether foreign businesses are actively looking to expand their business into the country or recruit industry talent, United Kingdom expansion is becoming increasingly frictionless and cost-effective for international players. The United Kingdom also benefits from appealing tax rates for entrepreneurs, where income thresholds have been set to encourage more growth and investment at every stage, incentivising both domestic and international businesses to scale efficiency. For instance, 0% tax structures for lower income earners of up to £12,570 annually help to provide relief, while incentivised taxation structures for higher earners of over £125,140 can help to mitigate the 45% outlay in taxes. Additionally, National Insurance contributions reductions for employees have helped to make it easier for companies to attract and retain talent. Advertisement Hide Ad Advertisement Hide Ad Reaping the Rewards of Investment Figures from the UK Department of Business and Trade suggest that over 80,000 jobs will be created by more than 1,600 foreign direct investment projects throughout all areas of the nation, with the likes of Scotland, Wales, Northern Ireland, the Midlands, and South West in line to reap the rewards. This can be a mutually beneficial means of securing growth that also nurtures the UK's talent pool within emerging industries.
Yahoo
14-05-2025
- Business
- Yahoo
UK foreign investment falls as funding from US dries up, survey shows
Foreign investment in the UK declined last year as funding from the US slipped, new data shows, while the Government is ramping up efforts to attract more overseas spending. The UK secured fewer investment projects than France for the fifth year in a row, according to EY's annual UK attractiveness survey. The number of foreign direct investment (FDI) projects totalled 853 in 2024, down 13% on 2023's total. It was also behind the 1,025 secured by France during the year, but ahead of Germany's 608. FDI projects refer to funding from overseas that helps businesses create new facilities or jobs. The technology sector attracted the most investment in the UK, followed by transport manufacturers which include carmakers and aerospace firms. Big projects last year including India-based technology giant Infosys opening a new artificial intelligence (AI) lab in London, in partnership with the University of Cambridge. Investment across Europe fell by 5% over 2024, marking the second consecutive year of decline, following a more pronounced dip in internationally-funded projects in France, the UK, and Germany. This partly reflects low economic growth, high energy prices, and competition from other markets such as Asia and the US impacting investment, according to EY. US spending on projects fell by 11% in Europe and 7% in the UK, helping drag on the overall total. Meanwhile, the UK secured half of all Indian funding into projects in Europe. The study comes hot off the heels of the UK securing a new trade deal with India, which slashed tariffs on goods exports and introduced tax exemptions that will make it easier for some Indian professionals to work in the country. The Government has also been accelerating efforts to boost investment into the UK in a bid to stimulate economic growth. Earlier this week, Chancellor Rachel Reeves welcomed a commitment by pension funds to invest tens of billions in British infrastructure projects and businesses. Peter Arnold, EY UK's chief economist, said: 'Economic growth across Europe has been relatively modest in recent years, which appears to be driving investors towards more competitive global destinations such as Asia and the US 'Global uncertainty makes it difficult to predict how investment numbers will change this year, but the UK does have some strong fundamentals that could set it apart. 'The UK tends to attract FDI from a more diverse range of countries outside Europe,' he said, adding: 'Rapidly expanding economies like India are also becoming increasingly important sources of investment for the UK in key sectors like technology.'
Daily Mail
14-05-2025
- Business
- Daily Mail
UK beats Europe in battle for investment for fifth year in a row - dispelling concerns over Brexit
The UK has attracted more new foreign direct investment than any other European country for the fifth year in a row – dispelling fears over the impact of Brexit. Figures from accountants EY showed Britain attracted 535 new projects in 2024. However, that was down by 27 per cent when compared with 2023. Germany and France also had sharp falls, of 19 per cent and 12 per cent, as 'an element of investor hesitancy' took hold, according to EY chief economist Peter Arnold. Arnold said it 'can be partially attributed to higher energy and labour costs in many European countries, as well as a degree of political uncertainty from the UK, France and Germany all holding major elections in 2024'. But the UK performance suggests leaving the EU has not been the disaster that some predicted. Julian Jessop, economics fellow at the Institute of Economic Affairs, a free-market think-tank, said: 'Some investment was held back by uncertainty initially created by the vote to leave. 'But this survey adds to evidence that headwind has faded and Brexit Britain is still a relatively attractive place to build a business. 'That appeal can only grow as the UK lowers trade barriers.' EY figures showed that when it comes to overall foreign direct investment – additions or extensions to existing projects – Britain's 853 projects trailed France's 1,025 last year. By region, greater London was the biggest in Europe, with 265 projects.
