Foreign investment to UK creates fewer jobs as Brexit looms

The Department for International Trade says investment overall is up

Liam Fox is International Trade Secretary
Liam Fox is International Trade Secretary

The rate at which foreign investment into the UK is creating new jobs is slowing as Britain heads towards the exit door of the EU, Government figures show.

Statistics published by the Department for International Trade (DIT) today show new jobs created by foreign investment fell by 9 per cent last year, with the number of company expansions also falling.

Jobs created in 2015/16 were 82,650, calling to 75,226 in 2016/17, the Department said. Firms expanding were down from 821 to 782.

The UK attracted over 2,200 new inward investment projects in 2016-17, a record rate.

Liam Fox, the International Trade Secretary, cast the figures in a positive light – noting that the UK was attracting “record levels of investment” despite the slowing job creation rate.

“Almost one year on since the EU referendum, the UK continues to attract record levels of inward investment and remains extremely attractive to foreign investors,” he said.

“As an international economic department, we continue to promote the strengths of the UK as a great inward investment destination, with an open, liberal economy, world-class talent and business-friendly taxation.”

The DIT says investments came first and foremost from the US, with 557 projects, and China in third with 160 projects. France was in third with 131 while India, Australia and New Zealand saw 127 projects each.

Liberal Democrat leader Tim Farron said the fall in job creation showed Mr Fox’s department was a “disaster”.

"This report shows that Liam Fox’s department is a disaster. If the International Trade Department cannot grow international trade, what are they actually for?” he said.

“While Liam Fox sits about in airport departure lounges of some of the world's sunniest spots businesses back here in the UK are now seeing a Brexit squeeze which is impacting on our economy.

“This government have no plan, no idea and no clue and this report is the latest evidence. Never has a minister risen so far and been more useless.”

Register for free to continue reading

Registration is a free and easy way to support our truly independent journalism

By registering, you will also enjoy limited access to Premium articles, exclusive newsletters, commenting, and virtual events with our leading journalists

Please enter a valid email
Please enter a valid email
Must be at least 6 characters, include an upper and lower case character and a number
Must be at least 6 characters, include an upper and lower case character and a number
Must be at least 6 characters, include an upper and lower case character and a number
Please enter your first name
Special characters aren’t allowed
Please enter a name between 1 and 40 characters
Please enter your last name
Special characters aren’t allowed
Please enter a name between 1 and 40 characters
You must be over 18 years old to register
You must be over 18 years old to register
Opt-out-policy
You can opt-out at any time by signing in to your account to manage your preferences. Each email has a link to unsubscribe.

By clicking ‘Create my account’ you confirm that your data has been entered correctly and you have read and agree to our Terms of use, Cookie policy and Privacy notice.

This site is protected by reCAPTCHA and the Google Privacy policy and Terms of service apply.

Already have an account? sign in

By clicking ‘Register’ you confirm that your data has been entered correctly and you have read and agree to our Terms of use, Cookie policy and Privacy notice.

This site is protected by reCAPTCHA and the Google Privacy policy and Terms of service apply.

Register for free to continue reading

Registration is a free and easy way to support our truly independent journalism

By registering, you will also enjoy limited access to Premium articles, exclusive newsletters, commenting, and virtual events with our leading journalists

Already have an account? sign in

By clicking ‘Register’ you confirm that your data has been entered correctly and you have read and agree to our Terms of use, Cookie policy and Privacy notice.

This site is protected by reCAPTCHA and the Google Privacy policy and Terms of service apply.

Join our new commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in