Foreign firms attracted to UK investment
June 29, 2005
, approximately 40,000 jobs were created in 2004/05 from 1,066 investment projects from foreign firms, a substantial increase from the 25,463 jobs created by 811 projects in the previous year.
The number of IT and software projects increased by 61% to 240, and research and development projects by 22% to 101.
The services sector was the most popular sector for inward investment, with a total of 451 projects, while 268 projects were in the manufacturing sector.
Alan Johnson, the Trade and Industry Secretary said “The figures being published today show that the UK is still viewed globally as one of the best places in the world to do business”. He said “International comparisons continue to show the UK as Europe’s top investment destination”.
The growth in investment was achieved despite strong competition from China and the 10 countries which joined the European Union last year.
UK projects were established by companies from 39 countries, including developing countries such as India. Significant investment came from Germany and Japan, while the majority of inward investment was from the US, with 464 projects creating 17,730 jobs.
Regionally, South-east England attracted the most jobs from inward investment, with 5,379 positions created.
Mr Johnson said the UK must build on the results by adding value and exploiting technology, as it was unable to compete on the basis of low labour costs.
William Pedder, chief executive of UK Trade and Investment, said companies were attracted to the UK because it was “very open” and “transparent” and labour market flexibility allowed for greater productivity.