Foreign investment in UK falls 11% to record low
The number of foreign investment projects into the UK fell by more than 11 per cent to a record low in 2024.
According to the Department for Business and Trade, there were 1,375 inbound foreign direct investment (FDI) projects into the UK in 2024, an 11.6 per cent fall from 2023 and the lowest number since 2007, when the government started recording the figure.
The number of jobs created in the UK through FDI fell by 3 per cent to 69,355 and the number of existing jobs safeguarded through FDI decreased by 12 per cent to 10,195.
The Labour government has attempted to present the UK as a prime location for foreign investment over the past year with mixed success. Its international investment conference in October was overshadowed by a row with DP World, the owner of P&O Ferries.
Louise Haigh, the transport secretary, called for a boycott of P&O Ferries and described it as a 'rogue operator' weeks before DP World had been due to announce a £1 billion investment into its London Gateway container port.
Haigh's comments put the investment in jeopardy and DP World was said to have considered reviewing it and postponing its announcement, although it did ultimately go ahead.
Rachel Reeves, the chancellor, and Jonathan Reynolds, the business secretary, have also sought to court foreign investment on trips to China and the Gulf states, respectively.
The proportion of inbound FDI projects in the UK that were supported by the business department also fell from 65 per cent in 2023 to 61 per cent in 2024. The total economic impact of the supported projects was estimated to be roughly £6 billion.
At the same time the number of FDI projects considered to be new investment projects fell by 20 per cent, from 1,023 in 2023 to 815. The number of projects considered to be either expansion projects or mergers and acquisitions increased by 4 per cent and 7 per cent, respectively.
The United States accounted for 329 FDI projects in 2024, more than any other country, followed by India, which was responsible for 106 projects, and Germany, which accounted for 83 projects.
The software and computer services sector had the most FDI projects with 257, followed by financial services and then advanced engineering.
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