UK Leads Global Investment Appeal as Top Destination Reveals Deloitte Survey

The United Kingdom has surpassed both the United States and Japan as a premier investment destination, according to senior executives at Britain’s largest corporations. The latest Deloitte quarterly survey of chief financial officers reveals a significant shift in global investment sentiment, with the UK emerging as a frontrunner alongside India.

The comprehensive study, which gathered insights from 61 finance chiefs at major British companies, demonstrated a net balance of 13 per cent of respondents rating Britain as either very or somewhat attractive for investment. This marks a substantial improvement from the previous quarter when the US, Middle East, emerging Europe, and Japan were preferred investment destinations.

Richard Houston, senior partner and chief executive of Deloitte UK, emphasised the significance of these findings, noting that “These results reveal a shift in sentiment, with the UK now viewed as a leading global investment destination.” The survey also indicated an increased appetite for risk among financial executives, with a net balance of 17 per cent suggesting favourable conditions for balance sheet risk-taking, up from 12 per cent in the previous quarter.

The research, conducted between 16-29 June, highlighted that geopolitical concerns remained the primary risk factor for the eighth consecutive quarter. However, the proportion of finance chiefs reporting high or very high external uncertainty decreased slightly to 44 per cent from 46 per cent.

Deloitte UK’s chief economist, Ian Stewart, attributed the reduced geopolitical concern partly to improved trade relations, specifically citing the UK-US trade agreement announced in early May. This development has contributed to a notable shift away from defensive strategies, with companies increasingly exploring new markets and products for expansion.

The survey’s findings suggest a renaissance in the UK’s global economic standing, despite ongoing market volatility and public finance concerns. This renewed confidence in British markets signals potential opportunities for both domestic and international investors looking to capitalise on the UK’s strengthening position as a global investment hub.