UK inward investment holds up under pressure

The UK continues to perform strongly in inward investment, Ministers have confirmed.

The UK continues to perform strongly in inward investment, Ministers have confirmed.

Trade and Industry Secretary Patricia Hewitt has announced that despite the uncertain global economy, the UK had attracted 709 investment projects in the year 2002/2003, creating more than 34,000 jobs.

Figures reported by Invest UK, the Government's inward investment operation, show that in the financial year 2002/2003: a total of 709 investment projects from 35 countries were reported - down by just 7% from the previous year's figure of 764; the number of new jobs created by these projects was higher than last year at 34,396; and 548 new investments and expansions were recorded (excluding mergers and acquisitions) - the second highest level ever recorded by Invest UK.

Hewitt said: "Britain is an excellent place to do business because of the economic decisions we have taken in government.

"We have the lowest inflation for 30 years, the lowest interest rates in 40 years and the highest employment ever, and our economy - unique in the G7 - has avoided recession.

It is no wonder we are number one for inward investment projects in Europe.

We have a lot to offer potential investors.

But we must not be complacent.

The recent Government assessment on the Euro showed that if we can make the necessary changes to the economy in the national economic interest to ensure that the tests of flexibility and convergence are met - then there will be new opportunities for investment, in particular foreign direct investment".

The Annual Review 2003 shows that knowledge-based investments continue to lead the way despite the continued downturn in information and communications industries, making the UK the leading location for software investments and high value R and D.

Low barriers to entry, a flexible and motivated workforce and world-class universities with leading research facilities have all contributed to the UK's competitive position.

William Pedder, Chief Executive of Invest UK said: "Investment from our largest markets, the USA and Canada stood up well last year despite the challenging environment created by business uncertainty and I am pleased to see the increasing number of investments from emerging markets in Asia Pacific, where Invest UK has reinforced its staff in the field.

The volume of new startups at 314 is still at the record levels of 2001 and the number of expansions has held firm.

The fall of 33% in mergers and acquisitions - reflecting the global trend - had the effect of reducing total project numbers compared with last year".

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