Latest news with #UKbusiness
Reuters
06-07-2025
- Business
- Reuters
UK firms lose taste for US investment, Deloitte survey shows
July 7 (Reuters) - The attractiveness of the United States as an investment destination has plunged in the eyes of British business executives who now see opportunities closer to home, a survey showed on Monday. Deloitte's survey of chief financial officers at major British firms showed a net balance of +2% of respondents saw the U.S. as an attractive place to invest, down from +59% in late 2024 - shortly before President Donald Trump took office. The report tallied with official U.S. data last month that showed inward foreign direct investment fell sharply in early 2025, a drop that coincided with high business uncertainty over Trump's tariff plans. By contrast, Deloitte said British company executives warmed to their own market, with the balance for the UK rising to +13% from -12% - ranking top with India for investment attractiveness. The U.S. remained more attractive than the rest of developed Europe or China, both of which had negative readings in Deloitte's survey. "These results reveal a shift in sentiment with the UK now viewed as a leading global investment destination," said Richard Houston, senior partner and chief executive of Deloitte UK. "This renewed confidence, coupled with a rise in risk appetite, is welcome and underscores the considerable investment potential the UK offers." In 2023, Britain was the fourth-biggest direct investor into the United States by ultimate beneficial owner, with a position of $636 billion, according to official US data. The Deloitte survey showed British executives reported an uptick in business confidence compared with the previous survey published in April. While still subdued, the optimism index ticked up to -11% from -14% in the previous quarter. British business surveys generally point to weak economic growth - a problem for finance minister Rachel Reeves, who is likely to raise taxes again at the next budget, according to market expectations. Deloitte polled 66 chief financial officers and executives between June 16 and June 29, including 37 listed companies with a combined market value of 386 billion pounds.
Bloomberg
26-06-2025
- Business
- Bloomberg
Starmer Recognizes Asking ‘a Lot' of UK Firms With Tax Hikes
By and Freya Jones Updated on Save Prime Minister Keir Starmer acknowledged the toll his tax increases have had on UK businesses, signaling a potential shift as his Labour government faces pressure to resist additional hikes that could exert a drag on an already sputtering economy. Starmer's remarks Thursday were his first clear appreciation of Britain's business community for shouldering the burden of Chancellor of the Exchequer Rachel Reeves' £40 billion ($54.9 billion) of tax increases, most of which came from payroll taxes.
The Independent
26-06-2025
- Business
- The Independent
Trio of trade deals ‘restored identity' of UK, PM says as trade plan unveiled
Prime Minister Sir Keir Starmer has said the trio of recent UK trade deals has 'restored our identity' in a 'volatile world', as the Government laid out its new plan to better protect firms from rising threats to global trade. Since Donald Trump's tariff announcements in April, the UK has reached new agreements with the US, India and the EU. Sir Keir said the deals showed 'that even in this volatile world, Britain is proudly, unashamedly, defiantly even, open for business, and today's trade strategy builds on that'. The Government's Trade Strategy aims to boost opportunities for UK businesses, particularly in the service sector, to export internationally, and vows to protect domestic firms from global threats to free trade. It comes at a time of heightened uncertainty following Donald Trump's tariff announcements in April, which have hiked charges on most US imports in a bid to boost home-grown production and support US businesses. In the paper, ministers pledge to 'confront the threat that protectionism poses to the UK by significantly upgrading our trade defence toolkit'. This includes clamping down on unfair trading practices, such as the 'dumping' of goods at low costs in foreign markets, which is believed to disadvantage domestic businesses. In the wake of the tariff announcements, some British retailers raised concerns that Chinese products were being rerouted from the US and deposited on UK and European online marketplaces like Shein and Amazon. Meanwhile, the strategy outlines measures to make it easier for UK firms to export, including reducing barriers to trading overseas and improving access to finance. Sir Keir suggested he would pursue a series of small deals rather than solely focusing on major trade agreements with countries. 'But perhaps most importantly, in this uncertain and challenging world, we will also give ourselves new powers on trade defence,' he said. 'To make sure that if your businesses are threatened by practices like dumping, that we have the right powers to defend you.'
Bloomberg
26-06-2025
- Business
- Bloomberg
Starmer Acknowledges Asking ‘a Lot' of UK Firms With Tax Hikes
Prime Minister Keir Starmer acknowledged the impact his government's tax increases have had on UK firms as he faces strong calls from business to resist further hikes in the autumn budget. 'We've asked a lot of you,' Starmer said to an audience of hundreds of business leaders at the British Chamber of Commerce's annual conference in London on Thursday. 'I understand that and want to acknowledge that. It's made a huge difference. The money has gone into the NHS and waiting lists are coming down. None of that would have been possible without your contribution.'
Sky News
25-06-2025
- Business
- Sky News
Trade strategy aims to boost UK firms amid Trump tariff chaos
Plans to better protect vital UK industries and help businesses export have been revealed by the government, as the world continues to grapple the effects of Donald Trump's trade war. A trade strategy, to be published on Thursday, aims to make the UK the best-connected country to do business, aided by looser regulation and increased access to finance. It forms part of the government's efforts to get business back on side after the backlash which followed the tax-raising budget and its "plan for change" to boost meagre economic growth. The plan follows hot on the heels of a trade deal which spares the UK from some of the US president's most punitive duties, and a more wide-ranging agreement with India. The strategy - the first since Brexit - also aims to capitalise on a relaxation in some EU rules on trade, and the separate industrial strategy outlined earlier this week that will give energy-intensive businesses help in bolstering their competitiveness through cuts to their bills. Jonathan Reynolds, the Business and Trade Secretary, said: "The UK is an open trading nation but we must reconcile this with a new geopolitical reality and work in our own national interest. "Our Trade Strategy will sharpen our trade defence so we can ensure British businesses are protected from harm, while also relentlessly pursuing every opportunity to sell to more markets under better terms than before." 2:49 The department said that the capacity of UK Export Finance, the UK's export credit agency, was to be expanded by £20bn and funding would also be set aside to tackle complex regulatory issues and remove obstacles for exporters. The US trade war provides both opportunities and threats to UK firms. The steel sector is to be consulted on what new protections can be put in place from June 2026 once current safeguards, covering things like cheap Chinese imports, are due to expire. The trade and industrial strategies have been revealed at a time of crisis for both steel and chemicals linked to high costs. 2:01 British Steel is now under the control of the UK government in a bid to protect the country's ability to produce so-called virgin steel following the closures of the blast furnaces at Tata's Port Talbot works. It was announced on Wednesday that Saudi firm Sabic was to shut its Olefins 6 ethylene plant at Wilton on Teesside, leaving more than 300 jobs at risk. Like British Steel's owner Jingye, Sabic has blamed high energy bills. Eliminating some of those costs, under the industrial strategy plans, would not kick in until 2026 at the earliest. At the same time, Associated British Foods (ABF) is to make a decision on Thursday on whether to shut the UK's largest bioethanol plant in Hull. ABF has complained that the Vivergo Fuels factory has had the rug pulled from under it by the UK government as its recent trade deal with the US allows subsidised US ethanol into the country. A second UK bioethanol plant, owned by Ensus, is at risk of closure on Teesside. The steel industry lobby group said the trade strategy would build on work in the industrial strategy to provide a more stable platform for the sector. UK Steel's director general Gareth Stace, said: "For too long, the government has been hamstrung by self-imposed rules that allow bad actors to take advantage of our open market. "This has enabled state-subsidised steel to rip market share away from domestic producers, at the cost of thousands of good jobs in some of the most economically vulnerable regions in the country, and fracturing manufacturing supply chains, making us more reliant on imports. "We need swift and decisive action to build a trade defence regime that is fit for purpose and in place before current safeguards expire in 2026. "With the right tools and the political will to use them, the UK can reassert control over its steel market, protect skilled jobs, and give investors the confidence that the UK steel sector has a strong and sustainable future."
