Although the UK has endured weak growth, falling productivity and high inflation in 2023, the pound has been the strongest performing currency among the G10 leading economies and the UK remains second in Europe for its ability to attract Foreign Direct Investment (FDI) projects.
According to the EY 2023 UK Attractiveness Survey, France held onto top spot for total European FDI project numbers for a fourth consecutive year, but the UK performed well on project value, delivering the highest jobs total in Europe, more jobs per project than Germany or France, as well as Europe’s most ‘new’ projects.
The UK is also Europe’s clear leader when it comes to strategically important FDI. Over one-in-four UK projects were linked to Research & Development or new company headquarters – trends consistent with the UK’s pivot in strategy to focus on value over volume when attracting FDI.
The UK’s legal and tax framework, such as the strong protection of IP, along with the well-established physical infrastructure, such as the Sci-Tech Parks, make the UK – and the Northwest in particular – a very attractive location for R&D projects. Clearly the UK’s holding company tax regime also makes it a clear favourite over its continental rivals for those seeking a location for their headquarters.
The UK’s leading sectors for FDI in 2022 were digital technology (234), financial services (76), business and professional services (70), utility supply (68) and agri-food (61).
Although London remained the UK’s top location for FDI projects, with 299 FDI projects in 2022 (down 24% from 394 in 2021), all Northern regions, the East Midlands, the East of England and Wales saw FDI project numbers rise by 10% or more year-on-year in 2022.
Based in Chester, Sovereign’s UK company and trust team has been blowing the trumpet for the Northwest of England for some time, so it’s particularly gratifying to see the region’s success in attracting FDI. We are well positioned to assist any businesses seeking to enter and establish themselves in the UK market, with particular emphasis on the Northwest. We have worked hard to build relationships with both public and private enterprises in the region to make it as easy as possible for our overseas clients to establish here and gain access to all available resources.
Managing Director of Sovereign Corporate & Trustee Services Ltd
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Residency and Citizenship Planning Highlight
Mauritius Residency Programs
Mauritius offers residency programmes that cater for most personal requirements and budgets. Establishing residency in Mauritius enables foreign individuals and their qualifying dependants to enjoy a range of benefits.
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