Birmingham leads UK for growth potential in latest foreign investment ranking

Birmingham has been ranked first in the UK for growth potential and retained fourth place overall in a study of the country’s most attractive locations for foreign investment.

The city sits behind London, Edinburgh and Greater Manchester in Irwin Mitchell’s Investment Confidence Index, produced by the Centre for Economics and Business Research (Cebr).

The Index assesses 48 UK locations using measures linked to their appeal to international investors. Birmingham achieved a Growth Potential score of 59.6, more than six points ahead of second-placed London.

The report is published as the Government continues to advance its devolution agenda and seeks to spread economic growth across all parts of the UK.

The research suggests that devolved powers alone are unlikely to determine investment success. Instead, regions that use greater local autonomy to strengthen skills, infrastructure and investment-ready opportunities are likely to be best placed to improve their appeal to international investors.

The findings indicate that local competitiveness will become increasingly important as regions take on greater responsibility for economic development and growth.

Bryan Bletso, Head of International at Irwin Mitchell and a corporate lawyer who advises international businesses on investing into the UK, said:

 

“Birmingham’s position as the UK’s leading location for growth potential, alongside its fourth-place overall ranking, confirms that it remains one of the country’s strongest investment destinations.

 

“This is particularly significant as competition for international investment remains intense.

 

“The West Midlands’ new funding settlement gives regional leaders greater flexibility over areas that influence investment decisions, including transport, skills and economic development.

 

“The opportunity is to use that flexibility to improve the practical offer to investors, including access to skills, infrastructure and suitable locations.”

The Index is published against a challenging backdrop for foreign investment. The number of FDI projects landing in the UK fell by 25.8%, from 1,375 in 2024/25 to 1,020 in 2025/26. These projects created 69,166 new jobs and safeguarded 16,407 existing roles.

The West Midlands recorded 98 FDI projects during 2025/26, the second-highest total among English regions outside London. These projects were associated with 4,634 new jobs.