LONDON, Sept 19 (Askume) – Britain could attract up to 7.7 billion pounds ($10.2 billion) in additional foreign sovereign investment by 2030 if it adopts a long-term plan to attract such funds, a report said.
As Prime Minister Keir Starmer prepares to host his first international investment summit on October 14, the City of London Corporation has renewed its call for a plan for financial and business services to convert interest on UK assets into cash.
Chancellor Rachel Reeves has warned that tax must be raised after a £22 billion gap in the public finances was exposed, making it even more vital for the cash-strapped Government to increase foreign direct investment into the UK.
Chris Hayward, policy chairman for the City of London, which governs Britain’s main financial centre, said Britain needed a streamlined system led by the chancellor of the exchequer and a public-private commission chaired by the chancellor.
The City of London reports that investment in the UK by sovereign wealth and public pension funds has more than doubled in the last five years compared to the five years since it opened an office in the UK.
An additional £13.4 billion of investment was secured through 92 deals across key sectors including innovative technologies, infrastructure and renewable energy.
“The path to economic growth runs through the city, so a plan must be developed to prioritise and capitalise on the contribution of financial services to foreign investment,” Mr Hayward said.
In addition, the British Investment Association said Levy should launch an inclusive investment strategy in the budget on October 30 to encourage more British families to save and invest.
Only one in 10 UK pension holders over the age of 55 believe they have enough savings to live comfortably in retirement, according to an online survey conducted by Opinium Research on behalf of the IA.
Chris Cummings, chief executive of the Investment Association, said British personal finance has a culture of risk aversion. He said, “Too many people in Britain are taking the biggest financial risk: not taking any risk. This needs to change.”
($1 = 0.7572 British pounds)
