
FDI Decline and the UK's Economic Future
A significant drop in foreign direct investment raises concerns for the UK's economic future.
In this episode of UK Business Morning, Alice and Lewis discuss the alarming decline in foreign direct investment (FDI) in the UK, with numbers at their lowest since 2007-08. The Department for Business and Trade reported 1,375 FDI projects in the financial year ending March, a 12 percent decrease from the previous year, with the economic benefit dropping to £6 billion. Experts like Nigel Driffeld from Warwick Business School highlight high energy costs and geopolitical uncertainty as key factors. The conversation explores the impact of the Labour Party's industrial strategy and the challenges posed by rising costs for employers. With the US, IT, and financial services sectors all experiencing declines, the hosts discuss what the government can do to reverse this trend and regain the confidence of international investors.