UK trade bodies call for new strategies to attract foreign billions

London — Britain could attract up to £7.7bn in additional foreign sovereign investment by 2030 if it pursues a long-term blueprint for enticing such funds, a report said.

The City of London Corporation has repeated calls for a financial and professional services plan to convert interest in British assets into cash as Prime Minister Keir Starmer prepares to host his first international investment summit on October 14.

Chancellor Rachel Reeves has warned that taxes will have to rise after uncovering a £22bn hole in public finances, making ramping up foreign direct investment in Britain even more important for the cash-strapped government.

Britain needed a streamlined system led by a public-private council chaired by the chancellor, Britain’s finance minister, said Chris Hayward, policy chairperson of the City of London, which administers the UK’s main financial centre.

The City of London report said sovereign wealth and public pension funds had more than doubled their UK investments in the five years after opening an office in Britain, compared with the five years before.

This resulted in an extra £13.4bn of investment, involving 92 deals, into key areas such as innovative technology, infrastructure and renewable energy, it said.

“The road to economic growth passes through the City, therefore there must be a plan to both prioritise and capitalise on the contribution of financial services to foreign investment,” Hayward said.

Separately, Britain’s Investment Association said Reeves should launch an inclusive investment strategy in the October 30 budget to encourage more UK households to save and invest.

Online surveys by Opinium Research on behalf of the association showed just one in 10 UK pension holders over 55 were confident they were saving enough to live comfortably in retirement.

Chris Cummings, Investment Association CEO, said the UK had a culture of avoiding risk in personal finances. “Too many people in the UK are taking one of the biggest financial risks of all: taking no risk. This needs to change,” he said.

Reuters