On 14 October 2024, the new Labour Government hosted its first International Investment Summit.
Announcing £63 billion of private sector investment including data centres, research facilities, ports and clean growth projects, the Government narrative set was ‘turbocharging growth and innovation’ creating 38,000 jobs across the UK.
Key messages communicated were to establish conditions for growth in the UK, and these are very welcome and necessary to enable economic transition and restructuring to enable future facing sectors to invest, creating long term training and jobs opportunities for communities as well as new supply chain development possibilities for business.
in short:
- The mission and priority for economic growth was clear.
- The Government said ‘we are determined to deliver economic growth in every part of the UK’, and support the growth of businesses, big and small.
- A commitment to net zero was restated with funding for renewables doubled.
- The record levels of deficit worldwide were noted.
- The private sector confirmed capital was available globally and they had choice about where to invest… ie capital is ‘portable’. In recent years the UK has missed out.
- The focus is now to provide businesses with confidence to invest in the UK as a strategic destination for capital.
- This requires a serious and stable government over a sustained period of 10 years plus that wants to work with the private sector.
- A Government that ‘set the table’ and doesn’t change it.
- Public and private sector partnerships and co-design will be needed to expedite delivery.
- The private sector naturally expect to receive a fair economic return against risk.
- The Prime Minister stated every regulator must take growth as seriously as business…red tape is to be slashed for major projects…bureaucracy is to be ripped up!
- Regulatory reform – including Planning- was highlighted. It will be fascinating to discuss what an ‘upgraded’ system will look and feel like. Lets’ hope those working on this ask for ideas from those involved in day-to-day delivery! We all know tinkering with the planning system can often make it more complex however this is a priority so let’s tackle performance, culture as well as process and focus on outcomes.
- A new Industrial Strategy will be forthcoming.
- Creating a National Wealth Fund (relaunch of the UK Infrastructure Bank) to leverage private sector funds.
- Capturing private sector funds into carbon capture and storage, green hydrogen, gigafactories are a priority.
- Corporation tax was announced as fixed at 25% for the parliament.
Source: Independent – link (opens a new page)