UK gains inward investment despite global downturn

The UK continues to perform strongly in inward investment, the government has claimed today.

Trade and Industry Secretary Patricia Hewitt has announced that despite the uncertain global economy, the UK had attracted 709 investment projects in the year 2002/2003, creating more than 34,000 jobs.

This was down by 7% from the previous year's figure of 764 – but the department says this is a good result in a "difficult year for the global economy".

Secretary of State for Trade and Industry Patricia Hewitt said: "Britain is an excellent place to do business because of the economic decisions we have taken in government.

"We have the lowest inflation for 30 years, the lowest interest rates in 40 years and the highest employment ever, and our economy – unique in the G7 - has avoided recession.

"It is no wonder we are number one for inward investment projects in Europe. We have a lot to offer potential investors. But we must not be complacent."

Knowledge-based investments topped the Annual Review 2003 survey, despite the downturn in information and communications industries. The government says that low barriers to entry, a flexible and motivated workforce and world-class universities with leading research facilities have all contributed to the UK's competitive position.

William Pedder, Chief Executive of Invest UK, said: "Investment from our largest markets, the US and Canada stood up well last year despite the challenging environment created by business uncertainty and I am pleased to see the increasing number of investments from emerging markets in Asia Pacific, where Invest-UK has reinforced its staff in the field."

However, the Tories have hit out at the government overs a EU Directive which they claim compels companies to consult their workers on management issues - and so damage competitiveness.

Mr Yeo said: "Compelling companies with as a few as 50 employees to consult and inform their workforce about a range of managerial decisions is potentially burdensome and not necessarily the best way to achieve best practice.

"In contrast to the promise from Tony Blair in November 2000 that EU proposals for greater worker representation would be vetoed by the government, it now seems that ministers are following the agenda of union leaders such as Brendan Barber, who last month heralded this Directive as a ‘significant change' for the role of Trade Unions.

"A one size fits all blueprint fails to recognise the diversity of companies, and will mean rigidity and formality in an area where diversity and flexibility are essential," the Shadow Minister said.

(GMcG)