Brexit could be a huge gamble for Birmingham’s future investment potential

BIRMINGHAM’S receipt of Foreign Direct Investment (FDI) could be threatened by a vote to leave the European Union, commercial property delegates have been told.

FDI expert Courtney Fingar, addressing an event at Cushman & Wakefield, told the audience that a vote to leave the EU on June 23 would be a ‘huge gamble’ for the UK.

She said: “Brexit is a big risk – from an FDI perspective, you would be gambling with the UK’s world leading FDI status. There is little to gain and potentially a lot to lose.

“There is no guarantee that the UK would be better out of EU – there is no guarantee that once freed from the shackles of the EU, that regulation would improve. There is lot of uncertainty that would be unleashed, and the transition would be long and painful.”

Ms Fingar said the UK was the leading recipient of FDI projects into Europe during 2015. During the year, there were 974 UK FDI projects, compared to just 364 for Germany and 356 for France.

“Birmingham has been a decent performer for FDI but has flattened out over the past two years. The main investors in Birmingham are US and India, with the latter very bullish about the city,” she said.

“Everyone has been busy chasing China but Birmingham has done a good job of taking advantage of the growth coming out of India.

“Birmingham is strong on businesses and technology and there are many reasons to be optimistic about the city – the ‘Midlands Engine’ is ramping up, and the city is seen to be a reliable performer, in terms of FDI.”

She said Birmingham had proved a safe haven over the years due in part to its good connectivity and its huge catchment area. It is also on the doorstep of London, which is one of the world’s top FDI cities.

“The only reason Birmingham might worry is that it could be squeezed out by the South East and the Northern Powerhouse,” she added.

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