London shines as investor magnet

The latest study by the University of Cardiff and Nottingham Business School provides an interesting review of the UK's economy.

Although the report does not specifically examine foreign direct investment, it highlights findings that align with our own study on the subject. Notably, it reveals that the London economy and certain areas in the south-east have experienced a surge in popularity among investors compared to the rest of the UK over the past year. It is worth noting that the factors contributing to London's success in the business realm are also the same aspects that make it highly attractive for foreign direct investment.

In collaboration with leading economic consultancy, Cebr, we undertook an extensive analysis of the 50 largest cities in the UK. Our assessment encompassed a range of economic indicators, grouped into three categories: growth potential, local skills, and local infrastructure. The results were compelling, with Inner London emerging as the most enticing location, followed by London as a whole, and then Outer London. Notably, Brighton and Oxford secured positions in the top five, while Manchester, Birmingham, and Edinburgh also made the top 10.

Foreign direct investment is widely acknowledged as a critical catalyst for domestic economic growth, as it has the potential to enhance productivity and facilitate the transfer of technology. Therefore, promoting the UK as an attractive destination for FDI will undoubtedly spur growth. While the success of London and the South East in attracting investment is certainly advantageous for the UK economy, it is essential to strive for a more balanced distribution across other regions to drive economic growth nationwide.

To enhance the appeal for foreign direct investment, the UK Government must prioritize the provision of quality infrastructure, accessible credit for businesses, and sustainable economic growth. By creating an environment that is attractive to international investors, we can position the UK as a global leader in foreign direct investment.

Irwin Mitchell's latest FDI report is available for download here

The London economy and parts of the southeast have become more attractive to investors than the rest of Britain over the past year, according to a study.

A report bythe University of Cardiff and Nottingham Business School found that out of 362 areas across England, Wales and Scotland, nine of the top 10 in a competitiveness index were London boroughs.

Runnymede, a borough to the west of London, was ninth, below new entrant Hackney and above Southwark.

The study’s authors said London and the home counties, including the top-ranked City of London, Westminster and Camden, stretched their lead over the rest of the regions and nations of Britain as the most economically attractive areas.

Only East Anglia and Cambridgeshire managed to keep pace with the capital, which the report’s authors said was due to their integration with London.”