UK projects funded by foreign direct investment drop for the first time in five years, figures show

Data also shows that safeguarded jobs in the UK fell by 54 per cent in the last financial year

Dr Liam Fox says the UK remains the top destination in Europe for foreign direct investment (PA)

UK projects funded by foreign direct investment have dropped for the first time in five years by nearly 10 per cent, according to the government’s own figures.

The data, published by the department for international trade on Tuesday, also shows that safeguarded jobs in the UK fell by 54 per cent from 32,672 to 15,063.

It adds that in 2016-17, there were 2,265 projects in the UK funded by foreign direct investment, but this fell by 193 to 2,072 in 2017-2018 – a decline of nine per cent.

The department, however, highlighted that new jobs increased slightly – by one per cent – in the same period as a result of foreign direct investment.

Commenting on the figures, Sir Vince Cable, the Liberal Democrat leader, said: “Building up foreign direct investment was hard work when the Liberal Democrats were in government – and that hard work has been wiped out a stroke by yet another of these much-vaunted but actually damaging Brexit dividends.”

Dr Liam Fox, the international trade secretary added: “Two years since the EU referendum, the UK has record employment and seen an increase in new jobs as a result of inward investment.

“We remain the top destination in Europe and third in the world for foreign direct investment.

"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 environment.”

The department highlighted that the decline in safeguarded jobs meant that DiT has had to intervene fewer times to save British companies, but some expressed concern at the new data.

Charles Haresnape, the CEO of Gatehouse Bank, said that uncertainty created by Brexit appears to have “significantly reduced” the number of UK projects funded by inward investment.

“The impact on jobs has been substantial, despite the weak pound making the UK look relatively good value since the referendum,” he added.

“The only glimmer of hope is that the number of new jobs created has remained fairly stable but nothing can mask the huge drop-off in the levels of safeguarded jobs, which have more than halved.