Before the start of important business talks in London, the biggest banks and corporations around the world said that Britain was ready for investment. It also has “a very real opportunity” to expand its economy.
Five of the largest banks in the world, along with private equity firms and insurers, sent a letter saying that it was time to “invest in Britain”.
The British government said that universities, legal services and financial expertise already formed the “bedrock” of a solid investment proposition. They also noted the growth in technology and the energy sector had “further strengthened Britain’s position”. Rachel Reeves is being urged to reduce her non-domestic tax plan.
The group also stated that Britain’s increased stability made it more attractive to investors, making reference to Labour’s election win in a period of uncertainty for many large economies. They said that they were optimistic about the economy’s future and believed it was time to invest in Britain.
Some of the biggest banks in the world have signed the letter, including JP Morgan and Goldman Sachs. Aviva, L&G and private equity firms such as Blackstone and KKR have all signed the letter. Fidelity, IFM Investors and Rigby Group are also signatories. RWE is the UK’s largest renewable energy company.
Five banks, HSBC Barclays Lloyds NatWest Santander, said separately that Britain can achieve the “prize”, of economic growth, if a “step-change” is made in the collaboration between the public and private sectors.
Sir Keir starmer hopes that the International Investment Summit can help mark a change after his first 100 days as premier were marred by internal fighting at No. 10, donation rows, and allegations that he talked down the economy.
One of the largest shipping companies in the world threatened on Friday to cancel a £1-billion infrastructure investment following derogatory remarks by a Cabinet Minister.
Jonathan Reynolds suggested that the national insurance rate for employers could be increased in the budget
DP World (which owns P&O Ferries) said that plans to announce an investor in its London Gateway Container Port at today’s talks were being reviewed after Louise Haigh called the company a “rogue operation”. She announced that she would boycott the company, and encourage others to follow suit.
After ministers publicly dissociated themselves from Haigh’s comments, the row seemed to have been resolved. Jonathan Reynolds, business secretary, stated yesterday that Haigh was not representing the government and that DP World would continue with its investment.
He gave the strongest hint yet that Rachel Reeves would raise employer national insurance on the 30th of October in the budget.
Reynolds explained that Labour’s pledge to not increase NI contributions “specifically” referred to the amount paid to the NI by employees and that ministers didn’t want to add to the burden of “working people”. Tories accused the move of “betraying” Labour’s manifesto.
John Caudwell the billionaire founder and former supporter of the Tories who switched to Labour during the election said that some investors may leave the UK following the budget.
The Guildhall investment talks on Monday are expected to bring in billions of pounds worth of investment, particularly in the areas of infrastructure, life science and artificial intelligence. The King will attend a reception in St Paul’s Cathedral for those taking part.
Starmer will pledge to “do everything in my power” to galvanise regulations, including eliminating regulation that “needlessly hinders investment”. He will announce that he will review regulations in order to “rip out bureaucracy which blocks investment, and make sure that every regulator in the country takes growth as seriously as we do”. The prime minister will also add that the growth is “critical” by saying: “We focus on investment because it’s the only way that this country can grow. Private sector investment will help us rebuild our country, and we can pay for our place in the world. “This is a wonderful time to support Britain.”
The signatories expressed optimism for Britain’s future in their letter. As global investors, we think there’s a real opportunity for Britain to grow its economy through attracting international investments. Technological advancements, improvements in the energy system, and increased freedom of capital flow have all enhanced Britain’s position. Its attractiveness increases with greater stability. “We are optimistic about Britain’s future and think it is the right time to invest.”
Banks said the right regulations would bring about significant opportunities. If we can find the right balance, then the prize will be real. Modernised infrastructure can help support growth in the entire country, but the financial services sector can also do more to boost prosperity.
The UK government is committed to helping start-ups scale up, building houses for families who want to own or rent their home and funding infrastructure projects which create jobs and skills across the UK.
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