Foreign Direct Investment

Lord Hunt of Wirral Excerpts

Tuesday 10th March 2026 Lords Chamber

Asked by

[Lord Hunt of Wirral]

To ask His Majesty’s Government what steps they are taking to incentivise foreign direct investment into the United Kingdom.

[The Minister of State, Department for Business and Trade and HM Treasury (Lord Stockwood) (Lab)]

My Lords, this Government are firmly committed to ensuring that the UK remains a leading destination for foreign direct investment. We are strengthening stability and certainty for investors, advancing planning reforms to unlock growth and championing our globally competitive sectors. Working closely with partners across the nations and regions, we are developing a clear, investable opportunity, so that inward investment supports productivity, high-quality jobs and long-term sustainable economic growth throughout the United Kingdom.

[Lord Hunt of Wirral (Con)]

My Lords, we all want to see more inward investment, yet the figures on the Minister’s departmental website show a fall of about 12% over the last year. We hear from those businesses that are thinking about investing in the UK that they are very concerned about the £1 billion in additional costs that were imposed on business under the Employment Rights Act. There is now talk of the trade unions pressing for another employment rights Act, which would impose even more burdens on business. What is the Minister going to do about this?

[Lord Stockwood (Lab)]

The reason I have come into government is to try to balance the need to grow our economy with making sure that our economy works for all sectors and parts of our country. Creating an economy that delivers for businesses and for working people requires some changes. To put these into perspective, total annual employment costs in the UK were £1.4 trillion in 2024, and the costs associated with the Act that the noble Lord mentioned are equivalent to an increase of less than 0.1% of that. Those reforms are not about burdening businesses for the sake of it; many employers already offer good terms and conditions that go well beyond what the law requires, and will consequently be less impacted by this package. The Act is designed simply to help level the playing field, so that responsible businesses and employers cannot be undercut.