FDI Must Be A Priority Following General Election Result

Business experts at law firm, Irwin Mitchell, are urging the main political parties not to lose the momentum that was building in relation to improving the UK’s approach to foreign direct investment (FDI).

FDI refers to an investment in an enterprise operating in a foreign economy and according to the latest ONS data, UK FDI has increased year-on-year for a decade to stand at over £2 trillion by 2021.

Following the government commissioned Harrington Review which criticised the UK’s approach to FDI, the Treasury announced last year that it would create the Ministerial Investment Group (MIG). Chaired by the Chancellor, its aim was to help drive forward the government’s strategic approach to FDI, and make it more disciplined, targeted, and coherent.

A Freedom of Information (FOI) request by Irwin Mitchell revealed the day before the General Election was called by Prime Minister Rishi Sunak, that this central pillar of the Government’s new foreign direct investment (FDI) strategy would meet for the first time in late Spring.

However, with Parliament being dissolved on 30^th May and campaigning due to commence, MIG, along with the other recommendations, are now in doubt.

Expert Opinion

“The Ministerial Investment Group was central to the government’s response to the Harrington Review. It was encouraging to see that it was due to convene, but frustrating that it might not now happen.

“It’s vital that FDI is prioritised by whichever party takes power on the 5th July and we will be keeping a close eye on what pledges are made in the manifestos over the coming weeks.”
Bryan Bletso, partner at Irwin Mitchell.

Irwin Mitchell has recently released a study, conducted in collaboration with the Centre for Economics and Business Research (Cebr), which evaluates the appeal of the UK's largest towns and cities for overseas investment. The research assesses 50 locations based on growth potential, local skills, and infrastructure.