On November 23, Reuters reported that Rishi Sunak, the Prime Minister of the United Kingdom, has selected Hampton Court, a historic 16th-century palace famous for its intricate maze, as the venue for a summit aimed at regaining favor among investors left disoriented by the twists and turns in British policy.
With the UK seeking to reclaim its status as Europe’s premier foreign direct investment (FDI) destination from France, Sunak faces the task of reassuring investors next week, emphasizing government guidance and a commitment to avoiding policy dead ends.
The reputation of stability that once characterized Britain has been challenged by five prime ministers and a constant ministerial turnover since the 2016 Brexit vote, creating uncertainty among investors.
In May, French President Emmanuel Macron secured 13 billion euros ($14.2 billion) in commitments at a event held at the opulent Versailles palace. Sunak aims to replicate this success by urging the business audience to exhibit similar faith in Britain, although convincing them may pose a challenge.
Key policy shifts, ranging from corporation tax rates, the net-zero timetable, a major high-speed rail project, to offshore and onshore wind policies, have left investors navigating through a changing landscape. Some executives feel the UK has taken foreign direct investment for granted, while others struggle with what they describe as a “slow and cumbersome” system.
Jack Paris, the head of InfraRed Capital Partners, noted, “The UK has diminished in its ability to attract capital in a variety of sectors,” expressing caution about investing in a heating and energy efficiency venture in Britain until there is clarity on regulation.
On Wednesday, British Finance Minister Jeremy Hunt announced long-term tax incentives to stimulate business investment, crucial for boosting the sluggish economy. He also endorsed proposals to provide increased support for foreign firms seeking to invest in the country.
