2019年-德勤中国_驱动赋能：投资英国_28页_3mb

Summary of "Power Up: UK Inward Investment"

Core Content

This report, Power Up: UK Inward Investment, explores the attractiveness of the UK to global businesses and the key drivers of foreign direct investment (FDI) in the country. It examines the impact of Brexit on investment decisions and provides recommendations to ensure the UK remains a global investment hub.

Main Points

1. UK's Attractiveness to Global Businesses

• The UK is perceived as a gateway to Europe, with its English language and strategic time zone making it an ideal location for international businesses to expand into the European market.
• The domestic market is a major draw, especially for firms with the capacity to scale internationally.
• The UK is seen as a stable and pro-business environment, with transparent tax, regulatory, and judicial systems, a flexible labor market, and a stable political climate.
• A high-quality education system and attractive lifestyle contribute to the UK's appeal, with many foreign investors citing the desire to live and educate children in the UK as a key factor.
• The talent pool in the UK is a significant asset, particularly in specialized technological fields like high-performance computing.

2. The Role of the UK's Services Sector

• The UK's services sector accounts for over 75% of GDP and plays a crucial role in driving economic recovery.
• London is a major hub for financial and professional services, generating a trade surplus of £80.5 billion.
• The US remains the largest market for UK services exports, accounting for nearly a quarter of all UK exports.

3. Innovation and Entrepreneurship

• The UK is home to a strong network of innovative SMEs, which are valuable partners for global businesses.
• London ranks third globally in terms of its tech startup ecosystem, behind Silicon Valley and New York.
• The government supports innovation through initiatives like the Industrial Strategy Challenger Funds.

4. Brexit Impact

• Despite Brexit, many foreign-owned businesses remain committed to the UK and have not changed their investment strategy.
• However, there is uncertainty around supply chains, regulatory alignment, and tariff-free access to the EU.
• The motor industry has seen significant investment cuts, with Nissan, Toyota, BMW, and PSA reducing their investments due to Brexit-related concerns.
• Brexit is not the only issue, as global economic shifts and increasing protectionism also influence investment decisions.

5. Global Headquarters and Investment Trends

• The UK remains the most popular location for European headquarters of Fortune 500 companies, with over half of them based in the UK in 2018.
• London continues to be the top destination city for FDI, with 4,110 projects recorded between 2009 and 2018.
• The number of European HQs in the UK has slightly declined over the past five years, but regional cities have seen a significant increase in European headquarters.
• China's influence has grown in the Fortune 500, with 106 companies in 2018 compared to 85 in 2013.

6. Recommendations for Continued UK Success

• The UK should safeguard its fundamental strengths, such as its judiciary, legal system, and education system, to maintain its competitive edge.
• A business-led skills strategy is necessary to address the apprenticeship crisis and ensure long-term talent retention.
• Immigration policy should be designed to attract and retain global talent and support foreign students in their future career development.
• Regulatory alignment with the EU and the US is critical to maintaining the UK's position as a global financial hub.
• The UK must embrace change and take a long-term view on policy-making to weather economic and political uncertainty.

Key Information

• FDI in the UK has consistently outperformed its European competitors, with a 6.7% share of global FDI between 2015 and 2018.
• Over 3,900 FDI projects were recorded in the UK during this period, creating almost 267,000 jobs.
• Capital investment in the UK reached $140 billion, surpassing the combined investment of Germany and France.
• The UK ranks second globally in terms of the number of inward investment projects over the last ten years.
• London remains the leading city for FDI, with a trade surplus of £80.5 billion from financial services.
• The UK's resilience after Brexit is notable, with many businesses continuing to invest despite uncertainty.

Conclusion

The UK continues to be a global hub for investment, driven by its pro-business environment, strong services sector, innovation ecosystem, and attractive lifestyle. While Brexit has introduced uncertainty, it has not deterred investment entirely. The UK must continue to invest in its core strengths and align with global standards to maintain its competitive edge in the international market.