The government makes all sorts of claims about the threat to inward investment to the UK should we leave the EU’s clutches and the BBC does little to dispel such notions. Hence we bring you this piece of puffery from the government from last year in which they boast of their success in attracting record levels of investment to the UK…due to the government’s fabled long term economic plan, their hard work in chasing investment from around the world, the UK infrastructure, the regulatory system, the attractive tax rates, the skilled work force, the R&D levels…and the government strategy that gives the UK the competitive edge in the world…..what’s missing from all that is any mention of the EU which we are now assured is the main reason for investment into the UK…the closeness of the EU market and access to free trade via the UK. However in the full report again there is no mention that the EU is a factor in driving investment towards the UK and only one company of the many highlighted as examples mentions that it chose the UK as a base to export to Europe…but even that is open to interpretation.
UK wins a record number of investment projects and maintains position as top investment destination in Europe
Prime Minister David Cameron said:
The scale of foreign investment is a huge success story which shows that Britain is the place to do business and is more evidence that our long term economic plan is working. Securing investment from overseas is a key part of our One Nation policies to create thousands of jobs, provide security and opportunities for working people throughout the UK.
Trade and Investment Minister Lord Maude said:
2014 was an exceptional year for UK inward investment and we are proud to be bucking the global trend. The UK is a great place for entrepreneurs and corporations to put their energy, their ideas, their money and their talents to work. The Government will continue to work hard to attract investment from across the globe to further strengthen the UK economy.
UKTI statistics show that FDI into the UK came from more than 70 countries, including the world’s leading emerging markets.
Once the referendum is over I imagine the Government will return to boasting of its achievements and claiming all the glory for themselves. Funny how times change, then again it was only a few months ago that both Osborne and Cameron were saying they would be happy to leave the EU if they didn’t get major reforms of the EU….still waiting on that one.
If the threat of Greece crashing out of the Euro – with a miniscule economy – sends heebie jeebies worldwide economically, the threat of the UK leaving the EU must terrify every country and nation on Earth! Even Russia!
So why are we being told we are so insignificant? We’re not insignificant, and that is the difference.
The people of Greece were told they were significant and the people of Britain are being told they are insignificant.
Chalk and Cheese.
If Greece dropped the Euro it would be a public admission that it will never repay its debts and that its creditors will have to write off that loss. It follows then that the Euro has lost value that can’t be recovered. As long as Greece keeps the Euro ‘everyone’ can pretend that there is no problem. A bit like borrowing from Wonga once you’ve lost your job and still standing your round.
The UK leaving the EU just screws up the status quo. Being in the EU pulls the teeth of the lion, which suits the USA, France and Germany. By being ‘in’ we have lost our seat on the world bodies that determine the future, such as the UNECE. Goodness knows why our politicians are so keen, they must be looking forward to EU jobs and pensions. As for the rest of us we will see investment and jobs increasingly moving eastwards while we take on a greater share of paying for it. Will there be consequences if we leave the EU? Yes, short-term. The markets will go wild and then reality will kick in and things will be much the same. Market traders love any excuse for a panic, it creates trades on which they make commission and if they can nudge a share or currency below its true value for a short time they can make a personal killing. So it is in the interest of all these people to make out that it will be a disaster if we leave the EU. If we did leave, within a fortnight, it will be “Oh it’s not so bad, in fact it is quite good really!”. More trading on the markets, more commission, nice little profit.
JimS,
I was just reading an article by a leading fund manager saying he would be buying in the 2 weeks leading up to the vote ( don’t know why he signalled that ! ) and he was not at all worried about an exit !
I work in the investment field albeit not in fund management. I regularly go to listen to fund managers and economists from the large investment houses.
Their bias towards remain is shameful. In this crony capitalist world with big business and big government intertwined, I fear this decision has already been made.
Rob,
Yes, generally true, although there are a few exceptions as I noted. For some reason, many of them say that leaving the EU will lead to the decline of the City of London. What total crap, the opposite is true.
He is always good value, at least
Worth every penny because he is unique.
If we remain in the EU we will be forced to adopt a common corporation tax band. At a stroke this will remove one of the main reasons why companies should invest in the UK because, after all, we are geographically on the periphery of Europe.
If we leave then when Eire is forced to increase their corporation tax limits then even more companies will invest in the UK.
As is noted in an EU document.
61. A Common Consolidated Corporate Tax Base directive, with a minimum rate and with common objectives for a progressive harmonization, should be adopted