UK Inward Investment

Vince Cable Excerpts

Wednesday 14th July 2010 Written Statements

[The Secretary of State for Business, Innovation and Skills (Vince Cable)]

With my right hon. Friend, the Secretary of State for Foreign and Commonwealth Affairs, I am pleased to announce that UK Trade & Investment today launched the UK Inward Investment 2009-10 Report, giving the national figures for inward investment over the last financial year.

The UK’s ability to attract and retain inward investment is at the heart of the Government’s economic recovery plans. These figures demonstrate how important investment is in stimulating growth and creating jobs.

Competition for this investment is intense, which is why the Government are committed to being open for business, and providing the best environment for investors, whether businesses are established here, expanding here, or locating here for the first time.

We are committed to cutting the deficit, reducing corporation tax, delivering flexible employment and workplace legislation and building the strongest R and D base in Europe.

We must make sure that the world’s best companies thrive here, linking up with the UK’s talent, creativity, innovation and know-how.

In a year when inward investment fell across Europe, the UK recorded a strong performance, attracting foreign investment from a record 54 countries, between 1 April 2009 and 31 March 2010.

The estimated number of jobs created or safeguarded by inward investment rose to more than 94,000, a 20% increase on the previous year. There were 1,619 direct investments in the UK by foreign-owned companies during the year.

Inward investment is a long-term decision for any company wanting to grow internationally. More investors are seeking to locate in the UK than anywhere else in Europe, helping to underpin the UK’s long-term economic prospects.

In line with reduced global market liquidity, the number of acquisitions, joint ventures and mergers taking place fell 51% from 457 in 2008-09 to 225 in 2009-10. But the number of new projects and the number of expansions have both increased, by 3% and 18% respectively.

Companies investing in the UK will do so with confidence. The UK’s economy is stable and resilient and this Government are taking action to secure the recovery and future growth. The UK has positioned itself as a springboard for companies seeking to grow internationally, both in and from a UK base.

UK Trade & Investment is the Government Department leading support for such companies in the international business environment. With my right hon. Friend the Secretary of State for Foreign and Commonwealth Affairs, I congratulate UK Trade & Investment on the role it has played in significantly assisting a record number of FDI projects, nearly half of the total locating in the UK in the year to 31 March 2010.

I am arranging for a copy of the UK Inward Investment 2009-10 Report by UK Trade & Investment to be placed in the Libraries of both Houses.