Foreign investment projects create highest number of new UK jobs since 2001Commonwealth Games Business Conference in Glasgow starts this week
The UK has attracted the most inward investment projects since records began in the 1980s.
Annual investment figures from UK Trade & Investment (UKTI) for 2013/14 show that the UK attracted 14% more projects than last year. This is supported by external independent sources, such as EY, who have confirmed that the UK remains the number one destination in Europe for foreign direct investment projects.
The UKTI report also shows 66,390 new jobs were created, the highest since 2001. In total 1,773 investment projects were set up by foreign businesses in the UK during the 2013/14 financial year.In the D2N2 area there were 27 investment projects, creating 1,860 new jobs and safeguarding 355. In Scotland, there were 122 projects creating or safeguarding 10,556 jobs.
Since 2010, UKTI has recorded 6,172 inward investment projects which are estimated to have created over 220,000 jobs. Over the same period UKTI has recorded 412 projects in Scotland creating 44,552 jobs.
The announcement was made ahead of the Commonwealth Games Business Conference in Glasgow this Tuesday and Wednesday which will showcase to the world’s business and political leaders all that the UK has to offer.
Prime Minister David Cameron welcomed the announcement. He said:
“Part of our long-term economic plan for the UK is about promoting every part of our country to the world and Glasgow’s Commonwealth Games will give us another fantastic platform to do this.
“I promise this Government will continue to work on behalf of every hardworking business in the UK to drum up trade, encourage investment and pave the way for growth so we can generate jobs, pay our way in the world, and create stability, security and a brighter future for our country.”
The report shows that the benefits are spread throughout the UK with England, Scotland, Wales, Northern Ireland and London all recording increases in the number of investment projects landing and new jobs created.
Northern Ireland in particular recorded a significant increase in investment projects compared to 2012/13 – 32% – while Wales registered an 18% increase in the number of investments and Scotland received a 10% boost.
Individual investments in Wales and Scotland, on average, had the largest impact in terms of creation or safeguarding of jobs (132 and 87 jobs per project respectively). Each investment in Northern Ireland is associated with 77 jobs, while projects landing in London are estimated to have created or safeguarded on average 44 jobs per project.
The number of investment projects landing in England (excluding London) also increased by 11%, reaching 840 projects.
Trade Minister Lord Livingston said:
“It’s been an exceptional year for foreign investment with record project numbers creating the highest number of new UK jobs since 2001.
“This excellent performance demonstrates the effectiveness of the Government’s plans to deliver growth.
“It shows that our strategy to attract investors to the UK by creating one of the most business-friendly environments in the world is the right one and it is proof that foreign investors have confidence in the UK as the best place to do business.”
The UK continues to attract high quality investment from around the globe both from our established economic partners in Europe, North America and Japan but also from key growing markets such as India and China.
The USA led the way as the largest source of FDI projects for the UK, generating 501 projects, up 27%. The top Commonwealth country for FDI is Canada. Canadian investment reached new heights in 2013/14, with 89 projects, up an encouraging 41%.
European companies also demonstrated increased interest in the UK. The two largest European contributors were France and Germany, both delivering over 100 projects, representing rises of 18% and 31% respectively.
Through the Industrial Strategy the Government is working in partnership with industry to set out and deliver long-term plans to secure jobs and growth.
The highest numbers of projects were in sectors central to the Industrial Strategy including the Advanced Manufacturing industry group with 418 projects creating a total of 37,204 jobs.