Foreign Direct Investment since 2016 2023-02-09
2023-02-09
TAGS
Response quality
Questions & Answers
Q1
Direct Answer
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Context
The MP is asking about the level of foreign direct investment into the UK post-Brexit referendum. This question follows a broader discussion on the economic impacts and opportunities arising from leaving the EU.
If she will make an estimate of the level of foreign direct investment into the UK since 23 June 2016, focusing on specific projects and job creation figures.
More global multinationals have set up subsidiaries in the UK than in any country other than the United States. This is the best place in Europe to raise capital. Between April 2016 and the end of March 2022, the Department assisted more than 8,700 foreign direct investment projects in the UK, which have created about 348,000 new jobs across the United Kingdom.
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Assessment & feedback
Response accuracy
Q2
Direct Answer
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Context
The MP is following up on a previous question about the level of foreign direct investment into the UK post-Brexit referendum. He provides an example of significant investment and asks for comparison with major EU countries.
The UK has had a great track record of attracting foreign direct investment since we voted to leave the European Union. The figures given by the Minister will include the £200 million investment by Ball Corporation in Burton Latimer. How does the UK's record of attracting foreign direct investment compare with those of our major EU competitors?
My hon. Friend has given a fantastic example of the opportunities that have been created. The UK is a highly attractive destination for FDI and has been among the top recipients in Europe over the last decade. According to the Financial Times and the United Nations Conference on Trade and Development, the UK has the highest market share of greenfield FDI capital expenditure in Europe, at 20%—almost double that of Spain, which is in second place with 12%. It also has the highest levels of FDA stock in Europe, second only to the US globally.
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Assessment & feedback
Response accuracy
Q3
Partial Answer
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Context
The MP is concerned about the impact of the Biden Administration's Inflation Reduction Act on UK competitiveness, particularly in innovative green technologies. This act provides significant tax credits and subsidies that may attract global investments to the US.
The Biden Administration's Inflation Reduction Act 2022 makes investing in the US very attractive, particularly for innovative green technology. How are we going to compete?
In my previous role I was dealing with the impacts of the Inflation Reduction Act, and I hope I will continue to do so because so many business representatives whom I have met have raised it as a concern. A great deal of work has already been done to promote all our expertise, especially in relation to hydrogen, but there is a huge amount of investment in the UK's green technology sector and technology in general. We are also a leading light when it comes to lithium.
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Assessment & feedback
The exact actions or policies for competing with US incentives were not specified.
Hope I Will Continue To Do So
A Great Deal Of Work Has Already Been Done
Response accuracy