Foreign Direct Investment in London

Meeting: 
MQT on 2019-06-20
Session date: 
June 20, 2019
Reference: 
2019/12200
Question By: 
Andrew Dismore
Organisation: 
Labour Group
Asked Of: 
The Mayor

Question

According to the Guardian, (https://www.theguardian.com/business/2019/jun/04/retailers-warn-of-fresh-wave-of-job-losses-and-store-closures)

“A survey by the consultancy and auditing firm EY found that the UK retained its position as the No 1 European destination for foreign direct investment (FDI) in 2018, but the number of projects was down by 13% on the previous year. Fifteen per cent of global investors have put investment plans in the UK on hold owing to Brexit, the firm said, but only 6% planned to move assets out of the UK in the future. Sectors exposed to Brexit experienced major declines in FDI in 2018, with manufacturing down by 35%, headquarters down 49% and R&D down 17%.”

 

How do you think this will affect London in particular, and do you agree that this is yet more evidence that a hard Brexit will do calamitous damage to our economy?

Answers

Answer for Foreign Direct Investment in London
Foreign Direct Investment in London

Foreign Direct Investment in London

Answered By: 
The Mayor

London remains the number one destination for Foreign Direct Investment (FDI) globally and in 2018 it attracted around 1 in 10 of all FDI projects into Europe (FDI Monitor, 2018).  

The fundamental strengths of London such as favourable time zones, world class talent and access to global markets is continuing to attract businesses and entrepreneurs from all over the world.  

However, whilst London’s overall international reputation is strong, there is no doubt that the Government's approach to Brexit has weakened appetite for investment. This means we need to work even harder to continue to sell London and we must make what preparations we can to avert the very negative outcomes of a no deal Brexit.