The figures highlighted in this report outline the UK’s huge success in attracting foreign capital, performing particularly well against its European neighbours, despite not being a member of the single currency. In order to maintain these enviable levels of foreign investment, it is paramount that the government and authorities work to maintain the open and stable business environment that has made the UK such a compelling economy to invest in over recent decades. As well as the UK’s stable, pro-business environment and leading education system, its depth of talent pool, innovation ecosystem and services sector were key strengths highlighted by business leaders we interviewed.

Talent pool 

The depth of the talent pool in the UK provides flexibility that is a key differentiator. Interviewees stressed that the UK should focus on a ready supply of the skills that domestic and foreign businesses need. Flexibility on visa requirements was seen as critical for a number of foreign-owned business, particularly those from outside the EU. The UK’s capabilities in specialised technological areas, such as high-performance computing, was also seen as important. 

 “Companies come to hire talent (and lots of it).”

Services 

The UK’s service sector, accounting for over three-quarters of GDP, has been seen as key for driving the economic recovery since the downturn in 2008.8 The ONS Index of Services shows the increasing economic importance of the services sector to the UK economy and its contribution to the labour market. 

“The professional and business services sector accounts for over one-tenth of the UK economy and has accounted for more than one-third of total UK job creation over the past decade. It’s no exaggeration to say it is a crown jewel in the UK economy.”

David Sproul, Senior Partner and Chief Executive, Deloitte UK and North West Europe

Innovation and entrepreneurship 

The UK is favoured not only for its access to a wide customer base, but also for its network of fast-growing, innovative domestic SMEs that businesses with a presence in the UK can partner with. According to research by TechNation, London ranks third behind only Silicon Valley and New York in terms of the strength of its tech startup ecosystem.11 Access to funding and talent are key drivers for London’s success, with the government showing its support through the recent Industrial strategy challenger funds. These are aimed at strengthening UK science and business innovation and take on the biggest challenges that society and industries face today. 

 “We learn a lot here that we can take back to our home country.”