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Inward Investment

With my right hon. Friend the Secretary of State for Foreign and Commonwealth Affairs, I am pleased to inform the House that UK Trade and Investment announced today, at its launch of the UK Inward Investment 2004–05 report, that there were 1,066 direct investments in the UK by foreign owned companies between 1 April 2004 and 31 March 2005. This is an increase of 31 per cent. on the year. Among business sectors, the largest number of projects were in IT, followed by software, pharma and biotech. Total jobs figures were up 26 per cent. to 75,043 of which 39,592 were new jobs (up 55 per cent. on the previous year) and 35,451 safeguarded jobs (up 5 per cent. on 2002–03) This performance reflects the confidence which companies around the world continue to show in the business climate in the UK. The number of new projects has increased by 49 per cent. from 339 in 2003–04 to 506 in 2004–05, while mergers/acquisitions and joint ventures were up 41 per cent from 187 in 2003–04 to 264 in 2004–05. Expansions by existing investors were up 3 per cent., from 285 in 2003–04 to 296 in 2004–05. The competition is fierce. But we will not allow our position as market leader in Europe to make us complacent. UKTI will further strengthen and sharpen its operations in priority markets and the Government will continue to ensure that the UK provides economic growth and stability and an innovative climate to attract investment. I am arranging for a copy of the UK Inward Investment 2004–05 report to be placed in the Libraries of both Houses.