Global investors pump £63billion into new infrastructure projects after Government declares Britain ‘open for business’
GLOBAL investors welcomed the Government’s rallying cry that the UK was “open for business” by pumping £63billion into new infrastructure projects yesterday.
Chancellor Rachel Reeves welcomed the “shovel-ready investments” as around 200 leaders from various sectors descended on Labour’s first International Investment Summit.
The Government’s pitch at Guildhall in the City of London was that it could promise a stable economy with a more certain regulatory environment.
PM Sir Keir Starmer pledged an end to “chop-change policies and politics”, which several business leaders applauded.
Bruce Flatt, boss of investment giant Brookfield Asset Management and owner of Canary Wharf, said global funds “don’t need capital, what they need is the right environment”.
Larry Fink, chief executive of Blackrock, one of the world’s biggest funds, said: “When money smells opportunity it runs toward it, and it’s the same when it sniffs a problem, it runs away.”
Andrea Rossi, chief executive of M&G, which has £100billion in UK, said: “The key for investment is confidence.”
Sir Keir argued he would rip-up red tape that acted as a barrier to investment.
It came as former Google boss Eric Schmidt told him such bureaucracy was destroying investment, adding: “The cost of capital and the delay is killing you, and furthermore you’re not going to achieve your 2030 energy goal, which is laudable, without fixing this.”
Greg Jackson, boss of Octopus Energy, said his firm had “been forced to invest in other countries because you can’t build stuff here — there needs to be reform of planning to help us build and invest”.
Investments from pharmaceutical group Eli Lilly, Sensodyne-maker HALEON, Manchester Airport, Southern Water investor Macquarie and wind farm giant Iberdrola were all announced.
The Government trumpeted the total was almost double the Conservatives’ previous investment summits.
After a kerfuffle following Louise Haigh’s “cowboy” jibe at P&O, Dubai owner DP World did commit £1billion to the London Gateway port project.
It had originally threatened to pull its investment and not attend the summit.
However, feverish phonecalls between the Government and bosses secured both.
Ms Haig refused media questions yesterday.
Business Secretary Jonathan Reynolds said the UK “respects business, wants to partner with business and is open for business”.
HOLD ME CLOSER, TINY DAVOS…
THE Government showcased Britain as a shining beacon for investment — as grey, thunderous clouds and downpours greeted international guests on their arrival to the City’s Guildhall yesterday.
Chancellor Rachel Reeves quipped: “You don’t come here for the weather!”
After blunders including leaked email addresses, complaints of shoddy organisation and a diplomatic row with DP World, the summit itself needed to be a success.
The looming black clouds, metaphorically speaking, were concerns over changes to National Insurance, Capital Gains Tax and inheritance tax — all of which “is not very pro-business”, one leader said.
Many privately expressed frustration that it was being held two weeks before the Budget.
However, others saw it as an opportunity for some last-minute lobbying.
One tech boss said they had warned the Chancellor against pressing ahead with tax raids on entrepreneurs.
But one chief exec said the so-called “mini-Davos” summit showed that the UK still had the “pull factor”.
To finish off, guests were whisked off to St Paul’s Cathedral on coaches, like a school trip, to be treated to an audience with the King and a surprise private performance by Sir Elton John, who did it for free.
Perhaps Taylor Swift’s diary was full.
REEVES IN BOOKIE TIP
THE Chancellor yesterday said she is “proud” of UK betting firms — after nearly £2billion was wiped off gambling stocks amid fears of a Budget tax raid of £900million to £3billion.
Shares in Ladbrokes owner Entain slid 8 per cent, with drops by William Hill owner Evoke, Mecca Bingo owner Rank and Paddy Power’s Flutter.
But Rachel Reeves said she backs gambling firms such as Skybet in her Leeds constituency.
PAGE HAS TO TURN TO CUTS
RECRUITER Pagegroup has become the latest firm to sound the alarm about a weakening jobs market.
It posted a 16.7 per cent profits slump to £201.4million in the third quarter and cut its own workforce again by around 100 jobs.
Page said the usual pick-up in business in September didn’t materialise.
It pointed to weaker business confidence delaying hiring decisions.
Last week, rival recruiter Hays also cut jobs as it warned the jobs market remained tough.
PageGroup has cut about 1,000 jobs in the past year.
It said of the recent slowdown that “conversion of interviews to accepted offers remains the most significant challenge, due to reduced levels of client and candidate confidence”.
GET YOUR HAND OFF
THE biggest shareholder in Mulberry has said it has “no interest” in selling up to Mike Ashley’s Frasers Group.
Fraser launched a sweetened £111million takeover approach on Friday for the luxury handbag-maker.
But Mulberry’s biggest investor, the Singaporean family behind Challice LTD, said it was “an inopportune time for Mulberry to be sold”.
Mulberry’s board said it would consider the new bid, but it is unlikely to succeed without Challice’s approval.