Rishi Sunak to Launch £ 1.4 Billion Fund to Attract More Overseas Investment

0
28
UK Lags Most G7 Countries in Sharing Covid Vaccines, Figures Show


The government will launch a £ 1.4 billion fund to attract more foreign investment into the UK economy, particularly in sectors such as life sciences and the production of electric vehicles.

In his budget announcement on Wednesday, Chancellor Rishi Sunak will also announce his intention to attract highly skilled foreign workers and change regulations to make it easier for international companies to relocate to the UK.

International companies with “strategically important” investment proposals will receive grants for their programs, after they have been assessed to ensure they provide value to the taxpayer.

“We want to make the UK the best place in the world to start, grow and invest in a business, as we continue to support businesses, create jobs and move forward as we recover from the pandemic,” Sunak said.

Last week, the government hosted 200 business leaders at a global investment summit in London, including a dinner with the Prime Minister for the 20 most influential business leaders, followed by a reception at the Windsor Castle with the Queen as he tried to woo multinational corporations.

The lion’s share of the new Global Britain Investment Fund, over £ 800million, has been earmarked to support investments in the electric vehicle manufacturing and supply chain in North East England and the Midlands . An additional £ 354million will be used to boost investment in life science manufacturing, including preparedness for future pandemics.

But Roger Barker, director of policy at the Institute of Directors, said: “There has to be conditionality associated with these grants to ensure that they support long-term commitments to the UK, its businesses, its regions. and its stakeholders. Most foreign direct investment currently disproportionately favors London and the South East, and therefore these grants should also be used to support the ‘upgrading program by encouraging investment outside these regions’.

The government also wants to make it easier for businesses to settle in the UK through new redomiciliation rules, to bring it in line with countries such as Canada, New Zealand and Switzerland, and is expected to launch a consultation.

As part of the package, the Chancellor will present plans to attract science and technology talent to Britain. A talent network team will work with UK companies and other research institutes to identify skills gaps and offer support to skilled workers wishing to settle here from universities, innovation centers and foreign research institutes. It will first launch in San Francisco and Boston in the United States next year alongside Bengaluru in India, before expanding to other countries.

The CBI group of companies welcomed the initiatives. Rain Newton-Smith, its chief economist, said: “If the recovery continues over the longer term, we need to get companies to invest. UK. Businesses hope there will be more to come from the Chancellor to help businesses invest.

“The UK has always been an attractive place for top talent. With labor shortages in the least skilled to the most skilled sectors, this new network could prove to be a useful tool in some of our most exciting and skilled industries, as well as much-needed funds to stimulate new ones. global investments in the UK. “

Two-thirds of UK businesses have urged the Chancellor to focus the budget on attracting investment to the UK and want it to encourage initiatives that will accelerate the country’s transition to a greener economy, according to the advisory group EY. Some 55% of the more than 1,000 companies surveyed said Sunak should use tax incentives to encourage green technology or carbon taxes, or both.


Sign up for the daily Business Today email or follow Guardian Business on Twitter at @BusinessDesk

Ahead of the Cop26 summit in Glasgow, companies were asked what steps the Treasury should take to encourage a faster transition to a greener economy. Improved allowances for specific types of expenses were the most popular choice, supported by almost half of the companies. But 39% thought taxes should be increased to increase the cost of greenhouse gas emissions.

Separately, the Covid recovery loan program, which offers loans of up to £ 10million to businesses struggling due to the pandemic, is expected to be extended until next June, and business groups l ‘greeted with caution.

“The litmus test for the program will be whether it is able to support the recovery by providing credit to businesses that need it most,” said Suren Thiru, head of economics at the British Chamber of Commerce.

LEAVE A REPLY

Please enter your comment!
Please enter your name here