North West leads the way for UK inward investment

THE North West topped London and the South East to secure the highest number of jobs from foreign investors of a UK region in 2012, according to new research.

Ernst & Young’s (EY) annual attractiveness survey, reveals that despite the abolition of the North West regional development agency, the region was able to lure 5,572 jobs – a 50% increase on the 2011 figure of 3,715.

Reflecting its status as the commercial heartbeat of the region, Greater Manchester secured the largest number of investments in 2012 (20) in the North West, compared to 11 in Merseyside, eight in Cheshire, four in Lancashire and one in Cumbria.

Liverpool city region though was home to one of the biggest single investments as Indian owner Tata ramped-up production at its Land Rover manufacturing plant in Halewood, creating 1,500 jobs.

Overall the North West ranked number one for number of jobs created out of 12 UK regions, ahead of London (4,018) and Scotland (4,867).

Simon Allport, Ernst & Young’s North West senior partner said: “The figures demonstrate that the North West is a regional powerhouse when securing inward investment. Our infrastructure and skilled workforce are an attractive proposition to foreign investors.”

The 5,572 jobs were created by 44 foreign direct investment (FDI) projects locating in the North West in 2012 – an increase of 13% on 2011 (39).

The North West, Yorkshire, the North East, and the West Midlands were the only English regions to show an improved performance in the number of FDI projects secured compared to 2011.

The other five including, London, South East, East of England, East Midlands and the South West all suffered a slump.

In marked contrast, the devolved administrations of Scotland, Wales and Northern Ireland saw dramatic rises in FDI – 49%, 244% and 71% as they were able to offer more attractive incentives to investors.

The North West region attracted investment largely from the traditional locations of the US (9 projects), France (5), Ireland (4), and Germany (4) compared to Brazil (1), Russia (1), India (2) and none from China. By sector, foreign investors in machinery and equipment, and business services were most attracted to the region.

The E&Y attractiveness survey, which analyses inward investment and the attitudes of global investors, reveals that the UK retained top spot in Europe for FDI.

The survey of 314 global investors showed satisfaction with the UK tax regime jumping from 53% to 61% – helping the UK to secure a market leading 29 of the 168 headquarter relocations in Europe, compared to 12 in the previous year. Labour costs were the other factor cited as having improved dramatically, with the satisfaction rating up to 63% from 48%.