Britain overtook Germany, China, and India for the first time in a recent survey as the world’s second most attractive destination for investment after the US.
This is a defining moment for Chancellor Rachel Reeves, whose relentless effort to steer the country’s economic revival is starting to bear fruit. The findings of the PwC’s UK CEO survey provide a much-needed boost, as the UK climbs from fourth to second place within a year, mirroring an upsurge in optimism among business leaders regarding Britain’s economic prospects for 2025.
Yet, there is no room for complacency. More than favourable survey results will be required to reconstruct Britain’s international reputation. It needs a coherent, long-term growth strategy – one which stimulates investment, but also allows multinationals to deliver.
These companies are the future of Britain’s success. They result in innovation, employment and local economies, all of which are essential factors in pushing the country up the rankings of the world economic scene.
Indeed, the path forward is not without its challenges. For as much progress as the UK is achieving, the global economy is competitive.
The US, led by President Trump, is still forging ahead with its bold agenda of slashing red tape, reducing taxes, and firing up economic growth. This has been piling pressure on European governments, the UK included, to give confidence to businesses that they too are on the same path towards growth via deregulation and pro-investment policies.
Salesforce CEO Marc Benioff, rightly said that the US is a frontrunner. Its emphasis on economic growth and push for deregulation are rendering it an attractive environment for foreign investors, drawing in multinational companies in search of a low-tax, low-burden sanctuary.
To maintain its upwards trajectory, the UK should therefore make sure that it stays appealing, getting into long-term commitments with multinational companies that have previously shown the potential to transform local economies and spur growth.
Take, for instance, the M4 corridor, home to head offices for a number of corporate multinationals taking advantage of strong transport links and an easy commute to London. A grouping of companies with offices along this corridor, stretching from London in the East to Wales in the West, has catalysed economic growth through the creation of job opportunities and the attraction of investments.
As an example, last year Newport councillors granted planning permission for Microsoft to build two large units in Celtic Way, on the site of a former factory. The new data centre will specialise in cloud storage and will comprise two large buildings which are expected to create 120 jobs.
The agreement also includes a contribution of £104,000 towards improved cycling and walking infrastructure along Celtic Way – a perfect example of how creating investment-friendly environments can bring influxes of employment that then have ripple effects throughout the community.
Security, fire safety, and AV solutions provider Dahua Technology has also invested £300,000 in a new Innovation Centre in Maidenhead. As a significant employer in the constituency, with over 40 people based at the site, the centre offers professional training, boosting local skills, driving economic growth in the region, and introducing new job prospects in the area.
This is not Dahua’s first investment in the local community. In 2022, it donated video surveillance equipment to Belfast Metropolitan College, providing apprentices with hands-on training opportunities. They also have sponsored and supported Skills for Security with training sites across the UK. These initiatives underscore its commitment to supporting the next generation of engineers and strengthening the UK’s technical workforce
The UK is attempting to position itself at the leading edge of investment locations, but the challenge now is to sustain the momentum seen in the PwC survey.
The Microsoft and Dahua Technology examples illustrate how inward investment and collaborating with multinationals can be translated into tangible economic benefit, creating employment, upskilling and strengthening economic upturn. As Rachel Reeves points out, “The time to invest in Britain is now.”
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Investment from multinationals will propel the UK economy upwards
