| Today's Inward Investment Annual Report shows projects
are up over 14% on last year, generating over 25,000 new jobs for the
UK. It's a great achievement and the UK remains the top investment
location in Europe.
The figures demonstrate how attractive the UK is as a place to do
business. And it's more than skin deep.
Our sound management of the economy has delivered macro economic
stability, the lowest inflation and the highest employment in decades.
But the credit really must go to the people who are working hard to
create more jobs and prosperity for the UK. We've got a flexible, highly
skilled work force; award winning designers; world-class managers and
leaders; and business focussed scientists backed by record levels of
public funding.
Taken together, the place the world's best companies and investors
want to do business.
We're still the top destination in Europe for all inward investment,
with a market share of 23% - up from 19% in 2002.
The type of investment we are attracting reflects our strengths as a
knowledge economy. The UK is the top European investment location for
research & development, headquarters operations, software,
electronics, pharmaceuticals, financial services and telecommunications
- including call centres.
And we're moving up the value chain into advanced high-tech, high
value added activities. Manufacturing makes up less than 20% of the
economy, but I can announce today that UK manufacturing has won more
than a third of our inward investment and a quarter of the jobs created.
For example:
· Automotive - Toyota investing a further US$90 million in its
manufacturing plant in Derbyshire creating 500 more jobs;
· Software - Indian firm Orbitech producing software for financial
services at Canary Wharf in London creating 250 new jobs;
· Electronics - Sharp investing in Wrexham in North Wales - its
first European plant for manufacturing solar panels - creating 90 new
jobs; and
· Financial services - Total Systems Services Inc from the US
opening one of the largest and most sophisticated data centres in
Western Europe near Harrogate, West Yorkshire - creating up to 100 new
jobs.
So in a competitive global economy Britain continues to be a magnet
for investment. The UK's response to globalisation is to maintain our
agile and open economy and work harder than ever to keep our competitive
edge:
China - the world's largest population set to become the world's
largest economy - now producing four times as many graduates as a decade
ago;
India - three million graduates a year - literate, skilled,
productive and with comparatively low wages, yet huge purchasing power;
And the new Central and Eastern European Member States of the EU -
many with wages a fraction of ours - now in the single market.
The expanded EU provides huge opportunities for our businesses -
access to a Single Market of 455 million people, exports to the EU worth
£146billion and significant foreign investment from firms that locate
in the UK in order to serve the whole EU market.
While we champion reform in Europe, my message to those who argue for
Britain's withdrawal from the EU is that our economy, jobs and
prosperity would all suffer. Withdrawal from the EU, with 3 million
British jobs linked to the export of goods and services - would be a
betrayal of Britain's national interest
We continue to be attractive to investors because we are addressing
the issues that matter to them:
Firstly - as I have said - by providing a sound and stable
environment for investment.
Secondly, improving skills - working across government and the
regions implementing the Skills Strategy - creating a demand led
approach to give businesses the skills they need.
Thirdly, tackling regulation - A recent KPMG survey shows the UK has
the lowest business cost structure in the seven major European
economies, the third lowest in the world behind Canada and Australia.
OECD in January this year rated the UK as having fewer regulations for
entrepreneurs than anywhere else in Europe.
We've eliminated most of the administrative costs of the Working Time
Regulations. And we are committed to keeping the opt out to secure
choice for workers and employers.
Finally improving our infrastructure - from broadband to access to
the planning regime - we are listening and responding to the needs of
business.
One of the keys to the UK's continued success is our excellent inward
investment network. UKTI, DTI, Development Agencies - national, regional
and local - working together to keep the UK on top.
By working together we can give prospective investors both the 'big
picture' and the 'close up' they need when deciding on a new location.
With the national and international focus of UKTI and DTI giving a
strategic overview. The Development Agencies providing expert local
knowledge on the doorstep.
RDA's with their regional and increasingly pan-regional view - like
One North East, NWDA and Yorkshire Forward - with a population nearly
twice the size of London - banding together to create a world-class
economy by 2025.
Yesterday I published a White Paper on Trade and Investment which set
out very clearly how the flow of capital, products and even jobs are key
to spreading opportunity and prosperity around the world.
As one of the world's oldest and most open trading nations, the
second largest investor in the world and a key player in the European
economy, the UK has a lot to offer. Mix that with our scientific and
academic excellence - we're the most productive nation in the G8 for
research; our cultural diversity; and our reputation for ideas and
creativity; and you've got a world-class brand.
I'm delighted that the UK has retained its position as the market
leader - the No.1 inward investment destination in Europe. We're working
hard to keep it that way.
|
