November 27th’s Global Investment Summit at Hampton Court had one big aim: to increase overseas investment in Britain. The Government was hoping to surpass the £9.7bn raised in foreign investment at the 2021 event – here’s what actually happened…
“It will create new growth and opportunities”
Sunak’s keynote speech saw the PM highlighting that the Summit was not just a sales pitch for Britain – it was a chance for Britain to say thank you. He highlighted that it is businesses and investors, not the Government, that grow the country, saying “Your decision to choose to invest in Britain is a huge vote of confidence in this country’s future”. But what does this investment actually look like?
£29.5bn raised…but how accurate is this figure?
The official Government announcement reveals that the Summit raised £29.5bn in capital and new UK projects, resulting in the creation of over 12,000 new jobs. These figures certainly exceed the totals seen at the 2021 Summit…but just how accurate are they?
A post-Summit report from The Guardian claims that the £29.5bn figure “is pure hype”. They claim that this figure includes spending and pledges that would have happened anyway, even without the Summit taking place.
The newspaper cites two examples of where this is the case. The first is the promise of a sum of £10bn over four years from Australian firm IFM Investors. This pledge is dependent on the arrival of “commercially viable opportunities” – so is not 100% guaranteed.
The second is the promise by Iberdrola, Scottish Power’s owner, of £7bn between 2024 and 2028. While the figure is impressive it matches their existing level of investment: £30bn of UK investment in the last 15 years.
Any investment in Britain, especially at a time when the economy is suffering, is welcomed. But just how much for the country has the Summit actually achieved?
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