Business Birmingham calls for level playing field on inward investment
BIRMINGHAM’S inward investment boss has urged the Government to introduce measures to give English regions parity with Scotland and Wales.
The devolved nations can offer financial incentives to attract foreign companies in whereas the English regions can’t.
Wouter Schuitemaker, investment director for Business Birmingham – the inward investment programme for Birmingham, the Black Country and Solihull – said: “While the Midlands continues to attract large, cash-rich investors that are creating significant numbers of jobs, we are not operating on a level playing field with other UK destinations.
“English regions are having to compete with the substantial financial incentives often offered by the UK’s devolved nations to attract investors to their locations.
“Business Birmingham has helped to create 2,750 jobs in the past year by attracting major investors to the city region. However, offering competitive financial incentives could dramatically improve our success rate and ensure an equal footing with other UK locations.
“The growth of regional economies is a key part of the Government’s deficit reduction programme – without a fairer system in the incentives offered to potential investors, this will be virtually impossible.”
Schuitemaker’s comments come as accountancy firm Ernst & Young’s latest UK Attractiveness Survey revealed that the Midlands created more employment from foreign direct investment (FDI) than any other region in the UK in 2011.
Despite attracting fewer FDI projects during 2011, the number of jobs created in the Midlands has nearly doubled – to 6,738 from 58 projects, compared with 3,769 from 91 projects in 2010.
Ernst & Young’s survey also identified that automotive investments created the most employment opportunities in the West Midlands – Jaguar Land Rover alone generated 1,750 in Solihull and Wolverhampton – demonstrating the region’s position as the UK’s automotive and manufacturing heartland.
While London’s reputation as a business capital continues to attract investment, the survey highlighted that the West Midlands was a leading choice for automotive and energy companies.
Sara Fowler, Ernst & Young’s senior partner for the Midlands, said: “The economy is still creating a number of challenges but investors are continuing to take advantage of the skilled workforce we have here in the Midlands, particularly in manufacturing.”
Schuitemaker added: “The West Midlands has an internationally renowned reputation for its manufacturing, with investors such as Jaguar Land Rover and Shanghai Automotive known all over the world. Our continued success in leveraging this reputation with a competitive offer for new investors is helping to bring new jobs to the area.
“Building on our heritage, the West Midlands must remain at the global cutting-edge of advanced manufacturing and related technologies. Keeping up is not an option – we must stay one step ahead if we are to remain competitive.”
