UK Prime Minister Sunak Unveils $37 Billion Investment Drive to Woo Global Investors
By April Fowell
In an attempt to regain Britain's position as the top destination for foreign direct investment (FDI) in Europe, Prime Minister Rishi Sunak hosted global CEOs after announcing 29.5 billion pounds ($36.76 billion) in private sector investments in the nation.
According to a statement from Sunak's Downing Street office, Australian funds IFM Investors and Aware Super will invest 10 billion pounds and 5 billion pounds, respectively, in initiatives spanning from energy transition and infrastructure to affordable housing.
(Photo : by Ian Forsyth/Getty Images)
Prime Minister Rishi Sunak hosted global CEOs after announcing 29.5 billion pounds ($36.76 billion) in private sector investments in the nation.
The Spanish power firm Iberdrola announced that it will increase its investment plans in Britain by 7 billion pounds. These plans include networks for the transmission and distribution of electricity.
Among the other initiatives mentioned in the announcement is Microsoft's investment of 2.5 billion pounds in artificial intelligence infrastructure.
Like many other nations, Britain is looking to the private sector for investment to help restructure its economy for the net-zero age and to construct the type of infrastructure that its already overburdened public finances are unable to support alone.
However, a number of significant investors have stated that although other nations have become more appealing for foreign direct investment (FDI), Britain's attraction has decreased recently due to the political and regulatory uncertainties brought on by the Brexit referendum decision in 2016.
Sunak Woos Investors with Long-Term Tax Benefits and Concierge Service
France became the European nation with the most new FDI projects last year, surpassing Britain. At a similar FDI event in May, French President Emmanuel Macron announced 13 billion euros ($14.18 billion) in promises for investment in his nation.
According to Sunak, more financing for sectors like life sciences, clean energy, and cutting-edge technology would generate excellent employment throughout the United Kingdom.
Prominent financiers Jamie Dimon from JP Morgan Chase, David Solomon from Goldman Sachs, and Stephen Schwarzman from Blackstone were scheduled to attend the event on Monday.
The government of Britain has accepted the recommendations of a study that was initiated after the nation lost out on several high-profile investments, and it now needs to do more to compete.
The accounting company EY claims that when it comes to FDI attractiveness, Britain now trails behind Germany and France.
However, it has had some recent achievements, such as Nissan's statement on Friday on the electric vehicles it would produce in northeastern England. To assist prospective investors in interacting with the government, Britain intends to establish a concierge service.
According to him, it would enable ministers to hold "very strong, frank discussions about how we can make the environment more investable with the international investment community."
Long-term tax benefits were unveiled by British Finance Minister Jeremy Hunt on Wednesday in an attempt to stimulate corporate investment and revitalise the flagging economy of his home nation.
All other government-announced initiatives were new, but the 10 billion-pound investment intentions for the UK of IFM constituted an increase from the first statement, made last year, of 3 billion pounds, a government official said.