Executive summary
About the report
Foreign direct investment (FDI) is crucial for the economy, facilitating technology transfer, promoting international trade via access to foreign markets, and serving as a vital driver of economic development.
For companies, FDI enables them to expand their operations globally, acquire resources, and enhance their multinational presence. For local and national government, FDI contributes to economic growth, stimulates employment, and fosters infrastructure development. On top of this, it creates crucial, long-last relationships between jurisdictions.
In 2023, Irwin Mitchell partnered with Cebr to create an Investment Attractiveness Index measuring how appealing the UK’s 50 largest cities are when it comes to foreign direct investment.
Following on from last year’s report, this new edition ranks the cities based on their growth potential, local skills, and infrastructure, allowing a year-on-year comparison. By re-examining these trends, you can get insight into how the attractiveness of these cities for investment has changed.
Key findings
London’s unwavering dominance: The capital continues to reign supreme as the most attractive investment destination. Its winning formula combines a highly skilled workforce, world-class universities, and a thriving business ecosystem.
Brighton’s surprising performance: Beyond London, Brighton stands out. With a knack for business creation and local skills development, it maintains its position as the highest-ranking city outside the capital.
Edinburgh’s rise: The Scottish capital is the leading city outside London and the South East. With strong local skills and robust infrastructure, it’s a beacon for investors seeking regional opportunities.
Coventry’s resilience: Amid economic headwinds, Coventry defies the odds. It’s the sole city to improve its overall Investment Attractiveness score year-on-year. A surge of new businesses and unwavering growth potential propels the Midlands location forward by 18 places.
Bucking the trend: The often-overlooked locations of Stockport, Bradford, Doncaster, and Kirklees show notable improvements in their rankings. These diverse regions demonstrate untapped potential for growth and investment.