Rachel Reeves’ charm offensive in New York to boost UK investment

Rachel Reeves will be courting Wall Street titans in an attempt to boost US investments in the UK next month.

The chancellor plans to visit New York early in August to meet with some of America’s largest investment firms.

A one-on-one meal with Stephen Schwarzman will be part of the trip. Schwarzman is the billionaire chief executive and chairman of Blackstone, which is the largest commercial real estate investor in the world. It is also understood that preparations are underway for a breakfast meeting with Wall Street leaders. The agenda is not yet finalised.

Reeves & Sir Keir starmer hope to attract billions in private investment to the UK, to boost growth and reduce tax hikes.

The chancellor is looking to increase investment in projects that range from green energy to infrastructure and housebuilding. She also showed support for the UK’s financial services sector, and City of London where Wall Street bank offices are located and thousands of people work.

Reeves is planning a trip to the US after she announced a fund to support investment in large projects, and crowd-in finance from private investors. The fund was launched with £7.3 billion in taxpayer money. Reeves stated that the fund will act as a “concierge for investors and companies who want to invest in Britain so they know what to do”.

India is the second largest source of foreign investment in the UK after the US.

Reeves prepares for a meeting Stephen Schwarzman, head of Blackstone, world’s largest commercial property investor

This support has been declining for the past four years. EY, a professional services company, reported that US investment in the UK was 42 percent lower in 2023 compared to the peak in 2019. In Europe, US investment projects fell by 29 percent in 2023 as compared to 2019.

Blackstone, one of the UK’s largest overseas investors, has more than $30 billion invested in over 100 UK investments, including Sage Homes – the affordable housing provider – and Bourne Leisure – the owner of Haven Holidays, Warner Leisure and Warner Leisure.

Schwarzman visited London for a ceremony in February to mark the beginning of construction on a new European Headquarters in Berkeley Square in Mayfair.

The UK government will present its investment pitch at a conference to be held in October. Labour will host the Global Investment Summit. This event is a continuation of the annual Conservative event that brought Wall Street titans like David Solomon, Chairman and Chief Executive of Goldman Sachs and Jamie Dimon.

Reeves, as shadow chancellor led an effort to engage UK business leaders in a campaign dubbed “smoked salmon scrambled egg offensive” due to the large number chief executives that joined her for breakfast.

Reeves is a former economist with the Bank of England. She described how President Biden’s industrial strategy, and his investment drive, inspired her last weekend.

She told Kuenssberg , “I take inspiration from some of the things they are doing in America to reindustrialise former industrial heartlands and bring good jobs to America.” Because I want to make sure that Britain receives its fair share in investment and that we create jobs across industries, from green industries such as carbon capture to life sciences, like me.

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