By Marcus Leach
Business Secretary Vince Cable has reaffirmed the importance of inward investment in rebalancing the economy, as he published figures showing 94,598 jobs created or safeguarded in 2010/11.
Crucially, over two thirds of new jobs came from existing investors. This demonstrates that companies investing in the UK are staying, growing and succeeding, stimulating growth across the country.
In a year when inward investment is recovering from global uncertainty, the UK has recorded a strong performance, attracting investment from 54 countries.
Prime Minister David Cameron said:
"In this competitive, globalised world it is our determination to do all that we can to secure more investment, more jobs and more trade. This will be critical to get our economy back on track, to build sustainable long-term growth and help rebalance the economy so that we are not over reliant on any one industry or on one corner of the country.
"That is why we have radically stepped up the importance of trade and investment throughout government, to make sure we fly the flag for Britain at every opportunity, and ensure that Britain is the first choice destination for overseas companies.
"And I can assure investors that you have got a government that is absolutely on your side, we are cutting corporation tax, we are cutting red tape and our plan for growth puts at its heart the commitment to remove barriers to help companies invest and business to thrive."
The UK remains Europe’s top destination for foreign direct investment (FDI), attracting 28 projects each week and generating nearly 2000 jobs each week. This supports the UK’s position as the destination of choice for businesses of every size.
UK Trade & Investment (UKTI), the department that supports businesses coming to the UK, has been significantly involved in building up the country’s competitiveness in terms of inward investment.
In 2010/11 UKTI helped to generate nearly 50,000 jobs - up 6% on the previous year. This equates to 136 every day and 959 every week. Separately UKTI helped to set up 849 new projects, which itself is up 12% on 2009/10 figures.
Speaking to over 100 CEOs of the UK’s leading investors at UKTI’s Business Summit, Business Secretary Vince Cable said:
“The UK is rightly proud of what it achieves in exporting ideas and products overseas, but also in bringing new technologies and talent home.
“When a business locates in the UK it can have a positive impact on local jobs and on improving skills across the country. With more overseas companies choosing the UK to set up their headquarters than anywhere else, we are in a good position to capitalise on these opportunities.”
Since 1st May 2011 responsibility for inward investment delivery in England (except London, which has its own arrangements) transferred to UKTI’s Inward Investment Services network. This forms an integral part of UKTI’s seamless end to end service for overseas businesses looking to invest in the UK, who will now benefit from the expertise of one single FDI Hub.
Dr Cable added:
“UKTI has put new private sector led arrangements in place to support investors. These will provide a clear point of entry for interested companies, giving professional advice on where to establish themselves and who to work with. This arrangement will be pivotal to improving support for inward investment and demonstrates the Government’s commitment to making it work.”
Foreign Secretary William Hague said:
“Sustained inward investment is crucial in maintaining our economic health, and so we must ensure that the UK remains an attractive place to do business and that foreign investors are aware of what we have to offer.
“FCO and UKTI staff, at our embassies and high commissions overseas, actively champion the UK’s strengths and I hope to see continued investment in the UK as a result.”
As well as highlighting the projects and jobs created through inward investment, today’s report also shows the UK’s most significant international partners: the USA, Japan, India Germany and France.
Jobs have increased across a range of sectors, including financial services, environmental technologies, e-commerce and software and computer services. The biggest of these increases was 212% in financial services, where London remains the world’s foremost financial centre.
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