Regions ‘hit by scrapping of agencies’

David Buckley, senior partner at Ernst & Young in Yorkshire, said English regions suffered in the battle to attract foreign investors last year, which he suggested was due to the coalition Government decision to close Yorkshire Forward and its regional counterparts.

He said: “Now represented by Local Enterprise Partnerships, English regions need greater focus and support to attract inward investment, or risk damaging the UK’s overall performance.

“In comparison, countries such as France and Germany have a much more balanced regional spread of projects.”

Yorkshire, the North East, North West and the West Midlands were the only English regions to show an improved performance in the number of foreign direct investment (FDI) projects secured, compared to 2011, according to latest research.

Yorkshire secured 21 FDI projects in 2012, creating 380 jobs, with South Yorkshire leading the way. The other five including London, South East, East of England, East Midlands and the South West all suffered a slump.

In stark contrast, the devolved administrations of Scotland, Wales and Northern Ireland saw dramatic rises in FDI.

In spite of the regional disparity, the UK received a major vote of confidence from foreign investors after retaining its lead as Europe’s top inward investment destination for the eleventh year running.

“This is a remarkable testament to the openness and international outlook of the UK economy,” said E&Y.