Foreign investment in UK hits record levels

Foreign investments in the UK rose by almost one-third to a record number in the latest year, government figures showed today.

A total of 1,066 projects created 39,592 jobs in the 12 months to March, up from 25,463 jobs created by 811 investment projects the previous year.

The Department of Trade and Industry said the projects, which included takeovers and expansions as well as new investments, also safeguarded a further 35,451 jobs. The figures come a week after the Organisation for Economic Co-operation and Development, said the UK saw the largest rise in foreign investment flows in the world last year.

Alan Johnson, the Secretary of State for Trade and Industry, said international comparisons showed the UK was Europe's top investment destination. He said: "The UK is still viewed globally as one of the best places in the world to do business, thanks to our unrivalled economic performance, emphasis on research and technology and skilled, flexible workforce."

Research and development projects rose 22 per cent to 101, while pharmaceuticals and biotech companies increased 38 per cent to 80. There was a 61 per cent rise in IT and software projects to 240.

Mr Johnson said the sharp increase showed claims that a decision to stay out of the euro meant Britain would lose out on investment were incorrect. "The predictions of the death knell for inward investment in the UK have been proved wrong," he said.

Services made up the largest area of investment, followed by manufacturing.

The US accounted for 43 per cent of the investment, with 464 projects bringing 17,730 jobs. However, another 38 countries also set up projects in Britain, including emerging economies China and India. The South-east attracted most jobs, with 5,379 people being hired by foreign companies.

Jack Straw, the Foreign Secretary, said the Government was "ambitious" for Britain and determined to seize the opportunities of the new global economy

"Inward investors recognise we've taken a lead in deregulating and opening up markets to international competition," he said. "Our openness to investment and commitment to free trade are essential for our continuing prosperity."

- INDEPENDENT