News | Published June 29 2019

Investment into UK shows signs of decline, according to government analysis

The Department for International Trade reports that inward investment into the UK is showing signs of sharp decline over the past few years.

In the year 2018-19, the number of new projects in the UK fell to 14 per cent with 24 per cent fewer jobs created.

The number of new jobs created as a consequence also dropped over the previous year, from 75,968 to 57,625: the lowest level for seven years.

The number of businesses establishing bases in the UK remains in decline, as has been the case since 2014-15.

An even bigger decrease was reported in the number of existing jobs secured by further investment in the UK.

However, the Department for International Trade’s figures are open to interpretation, as the analysis comes from areas of the UK which are doing the best.

It nonetheless highlights that the UK remains the number one European destination for foreign investment, and the most popular destination worldwide for US investment.

The figures link to the decline in investment into the UK from British firms.

The Governor of the Bank of England, Mark Carney, suggested that the continued uncertainty over Brexit meant that British firms were delaying spending decisions.

The UK is facing increased competition from countries such as Ireland, France and Germany.

There has, however, been an eight per cent increase in the number of British businesses bought by overseas firms.

Many firms are listed on the UK stock exchanges, and therefore many mergers and acquisitions happen in the UK despite not involving any UK companies.

Also worth noting is that the fall of the pound has also made it cheaper to buy and sell in the UK.

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Authored by

Alice Campbell
June 29 2019

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