UK’s London-centric economy ‘threatens foreign investment’

Research among more than 100 companies in Germany, France, the United States and Australia found that one in four described the UK economy as London-
centric.

The findings of a study carried out by ComRes reveal six in ten foreign companies believe that the UK’s regional cities are strong investment alternatives to London.

Investors also warn that growing regional cities’ share of investment is vital to ensure a balanced and sustainable recovery.

Inward investment agency Business Birmingham, which commissioned the survey, said the findings showed that regional cities need the backing of the Government.

Chief executive Neil Rami said: “Government must listen to what investors are telling us. There is no ‘one size fits all’ and London is not the only place for foreign investors to flourish.

“Regional cities need the backing of Government – fast-tracking plans for more economic autonomy, spreading regeneration funds and ensuring major infrastructure projects like HS2 are delivered will help us attract more investors and rebalance the economy away from a quickly overheating capital.”

As part of the Yorkshire Post’s recent Big Debate series on the North/South divide it was revealed that the Government spent less than half the amount of money per head in Yorkshire on transport, housing and cultural services than they did in either London or Scotland last year.

In the new survey, investors identified local support to get their business up and running quickly (76 per cent), access to talent and relevant skills (72 per cent) and cost (70 per cent) as crucial factors in deciding where to locate.