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Boosting Foreign Direct Investment
In November 2023 Lord Harrington published a review of the UK’s ability to attract Foreign Direct Investment (FDI).
The Review heard that some of the UK’s international peers are more strategic and better organised in attracting globally mobile investment. In addition, some international peers are using subsidies, tax-breaks and other business incentives focused on attracting strategically important industries.
In response, Lord Harrington recommended:
- A proactive investment strategy and the appointment of an Investment Minister with clear accountability from senior officials across government.
- For potential investors, this will involve targeted funding and more support to navigate the business environment in the UK such as planning, connections to the grid, visas, and skills.
- Regional lace-based offers e.g. this should include developing a small number of sites in advance of seeking FDI investment, including securing planning permission and grid connections, and mapping local R&D, skills and supply chains strengths.
- Recognition that the UK’s frequent use of prize funds is often not suitable as a mechanism for established companies who are seeking additional investment.