Inward Investment into the UK

Oct 31

Whilst Britain’s economy may have suffered in recent years, it hasn’t deterred overseas corporations from inward investment into the UK. Despite the difficult economic climate, the UK is still perceived as a viable place to invest and foreign companies have been keen to do so. The department of UK Trade and Investment state foreign direct inward investment generated or secured 112,659 jobs from 1,406 projects during the 2011-12 financial year, highlighting just how vital foreign direct investment is to the UK.

Although the economy has dipped, confidence in UK inward investments remains firm with the amount of foreign direct investment projects remaining stable. In fact, the number of countries investing in the UK increased from 54 to 58 during the same financial year that saw the number of jobs attributed to foreign direct investment rise by 19%. This increase exemplifies the confidence overseas investors have in the UK markets regardless of recent economic activity. In addition to this, the Financial Times cited the UK as the primary foreign direct investment location in Europe in its fDi Intelligence Report 2012. Although there are numerous reasons the UK is a prime location for foreign direct inward investment, HW Fisher and UKTI have identified eight of the major factors that makes the UK so attractive for inward investors.

  • Access to Europe – As the UK is not part of the Eurozone investors have access to the US$17 trillion European market but with some protection from the unpredictability of the single market.
  • Common Business Language – English is undoubtedly an extremely common business language. Businesses based here face no language barriers, have no problems trading internationally and can do so with ease.
  • Upcoming Talent–The number of UK graduate surpasses any other European country with over half a million graduates every year. The talent available to businesses in the UK ensures they will have a choice of high calibre candidates for every position.
  • R&D Environment – Eight of Europe’s top nine research Universities are based in the UK. The availability and accessibility of world class R&D facilities ensures the UK attracts businesses which are looking to grow.
  • Unique Business Location – As part of an independent assessment the World Bank recognised the UK as the best major location for ‘ease of doing business’. When compared to other countries and jurisdictions, the UK employment legislation, revenue law and finance acquisition regulations are generally perceived as being far more workable. The ease in which businesses can trade and expand in the UK makes it a prime business location.
  • Long Term Possibilities – The UK offers businesses a viable opportunity to launch their business but also to continue to expand. Year after year we see international inward investors continuing to invest in the UK and increase their investments. This highlights the benefits and potential success of investing in the UK to new and potential investors.
  • Standard of Living – The UK offers a great quality of life for people living here. With diverse and vibrant cities along with the world class education system and medical facilities, the UK is first choice for many executives who are relocating.
  • Competitive Tax Environment – The continuing corporation tax reduction in addition to the R&D tax credits available to businesses highlights the UK’s competitive tax environment and emphasis on encouraging businesses to prosper.

Of course, launching a business in a foreign country or new jurisdiction requires a lot of planning and research. Potential investors should always obtain expert advice when considering setting up in a new location, even when it’s as well placed and as highly regarded as the UK.

HW Fisher & Company is a commercially astute organisation – ranked as a mid-tier top 25 UK chartered accountancy firm, with a personal, partner-led service aimed at entrepreneurial small, medium enterprises (SMEs), large corporates and high-net worth individuals.


HW Fisher specialises in Inward Investmentservices, providing advice, support and guidance to those considering investment opportunities.

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