A key pledge in Labour’s manifesto was to establish the UK as a global hub for international investment. The 2024 International Investment summit, securing a record £63 billion in private investments, marks a significant step towards achieving this goal and demonstrates the government’s early successes.
2024 International Investment Summit
October 14th marked a pivotal moment in the new government’s strategy to solidify the UK’s leadership across key industries. With economic growth as its top priority, the 2024 International Investment summit secured a record-breaking £63 billion in private investments, creating nearly 38,000 new jobs nationwide.
As this investment is expected to flow into key sectors – life sciences, technology, energy, and transport – the UK is positioned to enhance its global standing in innovation and sustainability, driving long-term growth, fostering cutting-edge advancements, and solidifying its role in addressing global challenges.
But what does this mean for the UK’s industrial landscape?
Empowering Health Innovation
The summit bolstered the life sciences sector, with Eli Lilly committing £279 million for research tackling obesity and other major health challenges. This investment, alongside Imperial College London’s £150 million for a new research campus, positions the UK at the forefront of biotech and personalised medicine. These efforts are set to support early-stage life sciences ventures, develop transformative therapies, improve patient outcomes, and create significant jobs across the sector.
Moreover, the Haleon Global Oral Health Innovation Centre in Surrey, backed by £130 million, will enhance research into new healthcare products. This is certainly a positive sign, conveying the UK’s growing reputation as a hub for medical innovation.
Driving AI
With AI leading the digital revolution, the summit drew significant investments in the UK’s tech landscape. Several major U.S. tech companies pledged £6.3 billion for new data centres, fueling (further) AI development. Investments from Blackstone (£10 billion) and Amazon Web Services (£8 billion) highlight the UK’s ambition to become a global hub for AI, big data, and cloud services alike.
Not only will these investments enable vast amounts of data storage required for AI applications, but they are also expected to drive a substantial increase in tech-related jobs. The expansion of data centres and AI infrastructure is set to create a ripple effect, generating thousands of new roles in fields like data management, engineering, construction, and digital services.
This expected growth in the UK tech sector should lay the groundwork for the country to compete globally in AI development and digital services, ensuring that AI innovations drive national economic growth.
The Journey to Net-Zero
Unsurprisingly, the energy sector saw a significant focus on green technologies, with renewable energy giants such as Iberdrola and Orsted announcing investments totalling £24 billion and £8 billion respectively. These funds are primarily focused on expanding offshore wind farms, pivotal to the UK’s transition to clean energy.
At the same time, new investments in carbon capture and hydrogen technologies signal the UK’s commitment to a broader renewable energy mix. These projects will not only help achieve Net Zero targets but also create thousands of high-skilled jobs, particularly in regions like Northeast and Northwest England.
However, concerns have emerged about the potential negative impact such large-scale projects could have on the natural environment. Addressing these issues will be crucial as the UK moves forward, balancing economic growth and innovation with sustainability and responsible environmental practices.
Greener Transport
The transport sector benefited from major investments aimed at strengthening both trade infrastructure and sustainable mobility. DP World’s £1 billion commitment to the London Gateway container port and ABP’s £200 million partnership with Stena Line for the Port of Immingham will enhance the UK’s trade routes and logistics infrastructure, ensuring the nation remains a critical gateway for global commerce.
On the green transport front, Macquarie’s £1.3 billion into green infrastructure and Octopus Energy’s renewable energy projects, including solar farms and energy storage systems, support the broader electrification of the transport sector. These investments are critical to ensuring that the UK’s ambitious EV (electric vehicle) adoption targets are met, furthering decarbonisation.
Final Thoughts: A Restoration of Confidence in the British Economy?
Has the summit bolstered confidence in the British economy?
The 2024 UK International Investment Summit certainly underscored the country’s ability to attract monumental investments, particularly in sectors critical to its future growth. The £63 billion secured not only welcomes economic growth and job creation but also solidifies the UK’s leadership in health innovation, AI, renewable energy, and sustainable transport. This summit positions the UK as a global leader in innovation while also advancing its climate goals and addressing global challenges through transformative projects
For more of Chamber UK’s analysis of Labour’s first 100 days in office, please click here.