Inward investment makes a significant contribution to the UK economy – beyond job creation and wages through to productivity gains and fostering innovation, research and development. Uncertainty surrounding the future UK-EU relationship is weighing on investment decisions.

“Amidst rapid change, the world’s largest businesses strive to access the best talent and to collaborate across borders to extend their reach and impact.”

Sharon Thorne, Deputy CEO & Managing Partner, Global & Strategy, 
Deloitte North West Europe

Historically, the UK’s success in attracting FDI has been because it is perceived as a gateway to the European market. In a post Brexit environment, we’re likely to have additional trade barriers  with Europe – the question is how significant is this impact on FDI?

The data available so far presents a mixed picture, but indicates that there has not been a drastic fall in investment since the UK’s decision to leave the EU in 2016, but rather a slight decline.

With there still being many unknowns around the future UK-EU relationship, what is certain is that the UK will need to build on its established strengths – and meet some new challenges – if it is to continue to be successful in attracting investment. It most certainly cannot afford to stand still.

The findings in this report highlight the UK’s attractiveness to global businesses over the last ten years, and its resilience in the period following the UK’s EU referendum. We explore the value this foreign investment brings to the UK economy and the key drivers of this investment, from access to talent to the digital and physical infrastructure.