Report Says Strong Performance For Business Creation And Local Skills Contributes To Brighton’s Appeal

Brighton has retained its position as the most attractive city outside of London for foreign direct investment (FDI), according to a new study.

Produced by law firm Irwin Mitchell, the Investment Attractiveness Index has been compiled by experts at the Centre for Economics and Business Research (Cebr), who have analysed the UK’s 50 largest cities according to eight indicators related to Growth Potential, Local Infrastructure, and Local. *

Boosting its chances of attracting hundreds of new jobs via foreign investment, the report says Brighton scores 41.9.

This overall attractiveness score is 8.9 points lower than last year and mainly caused by lower predicted GVA growth in 2024 compared to 2023. Irwin Mitchell’s report does however say Brighton performs impressively in terms of local skills and has the highest score out of all 50 locations for Growth Potential.

FDI refers to investments made by foreign investors in a company located in a different country. It can take the form of greenfield investments or Mergers & Acquisitions. In 2021, the UK's inward FDI position was £2,002 billion, slightly higher than the previous year's £1,919 billion.

EY’s 2024 UK Attractiveness Survey recorded 985 FDI projects in 2023, up 6% from 2022. It also revealed the UK recorded an average 60.9 jobs per FDI project.

Earlier this year, Irwin Mitchell opened an office in Brighton as part of plans to grow its footprint across the South East. 

Expert Opinion

“Brighton achieved outstanding results on the Index. The city’s performance in the Local Skills pillar improved, driven by enhancements in the university indicator. Additionally, Brighton maintains its position as the city with the highest number of new businesses outside of London, underscoring its exceptional business ecosystem.” Andrew Walker, Irwin Mitchell partner

Guy Sackett, Real Estate partner at Irwin Mitchell, added:

“Brighton has grown into a vibrant economic hub, attracting high quality investment through its burgeoning reputation in tech and creative industries. This success is largely down to the fact that Brighton’s DNA is rooted in its culturally diverse and socially inclusive heritage, which attracts a high calibre of skilled workforce who are able to live and work as part of a community. This in turn has fostered an entrepreneurial spirit that is unique to Brighton and fits perfectly with Irwin Mitchell’s ambition to form deep relationships with our clients.”

Pushpin Singh, Senior Economist at Cebr, said: “With FDI remaining crucial for economic growth, driving innovation and creating jobs, local and national governments should work together to make improving attractiveness to investment a key priority over the coming years.”

FDI refers to investments made by foreign investors in a company located in a different country. It can take the form of greenfield investments or Mergers & Acquisitions. In 2021, the UK's inward FDI position was £2,002 billion, slightly higher than the previous year's £1,919 billion.

EY’s 2024 UK Attractiveness Survey recorded 985 FDI projects in 2023, up 6% from 2022. It also revealed the UK recorded an average 60.9 jobs per FDI project.