The UK has attracted more new foreign direct investment than any other European country for the fifth year in a row – dispelling fears over the impact of Brexit.
Figures from accountants EY showed Britain attracted 535 new projects in 2024.
However, that was down by 27 per cent when compared with 2023.
Germany and France also had sharp falls, of 19 per cent and 12 per cent, as ‘an element of investor hesitancy’ took hold, according to EY chief economist Peter Arnold.
Arnold said it ‘can be partially attributed to higher energy and labour costs in many European countries, as well as a degree of political uncertainty from the UK, France and Germany all holding major elections in 2024’.
But the UK performance suggests leaving the EU has not been the disaster that some predicted.
Investment: Figures from accountants EY showed Britain attracted 535 new projects in 2024. However, that was down by 27% when compared with 2023
Julian Jessop, economics fellow at the Institute of Economic Affairs, a free-market think-tank, said: ‘Some investment was held back by uncertainty initially created by the vote to leave.
‘But this survey adds to evidence that headwind has faded and Brexit Britain is still a relatively attractive place to build a business.
‘That appeal can only grow as the UK lowers trade barriers.’
EY figures showed that when it comes to overall foreign direct investment – additions or extensions to existing projects – Britain’s 853 projects trailed France’s 1,025 last year.
By region, greater London was the biggest in Europe, with 265 projects.
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