Key recommendations
The findings of this report underline both the strengths of the UK’s inward investment offer and the challenges it faces in a more uncertain global environment.
Our updated Investment Attractiveness Index highlights how London, Edinburgh, and Oxford continue to perform strongly through skilled workforces, world-class universities, and knowledge-intensive clusters. These advantages have underpinned the UK’s success in high-value sectors such as technology, finance, and advanced engineering, which together account for a large share of FDI projects.
Building further on these clusters will be critical to attracting investment and creating jobs across the country.
The evidence also underscores the importance of globally competitive regions and sectors. The ‘Golden Triangle’ of London, Cambridge, and Oxford — together with hubs such as those in the West Midlands — continues to drive a disproportionate share of investment. London in particular remains Europe’s leading city for FDI projects, supported by its role as a financial centre, global tech hub, and magnet for talent.
A key challenge for policymakers is not only to maintain London’s global competitiveness, but also to better diffuse its advantages to other UK cities.
Macroeconomic headwinds, not least policy uncertainty, elevated borrowing costs, and global trade tensions, are weighing on sentiment more heavily than sector-specific incentives. Insights from the EY Attractiveness Survey corroborate this picture, showing that while the UK continues to lead Europe for digital and R&D projects, overall perceptions of stability and predictability are less favourable than for some European peers.
Promoting a stable and open business environment remains the foundation of the UK’s attractiveness.
Taken together, these priorities point to a clear conclusion: the UK retains substantial competitive advantages in skills, research, and high-value sectors. The challenge is in converting these into sustained inward investment, which will require consistent delivery, policy stability, and stronger alignment between national ambitions and local conditions.
Bryan Bletso
Head of International at Irwin Mitchell +44 (0)7770 795 703 bryan.bletso@irwinmitchell.com