Foreign Direct Investment 2016-17
Debate between Michael Tomlinson and David Simpson(7 years, 3 months ago)
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Michael Tomlinson
If you are, perhaps we should all get on to Snapchat. It has opened its new global hub right here in London, which again shows that it believes in this country in a post-Brexit world. There may well be bumps ahead, but let us look at the facts and the evidence of what has happened so far, while also being cautious about the future.
Having looked at the general picture, let me give some specific details of FDI. The latest report on inward investment results from the Department for International Trade, which is from 2016-17, showed that there were more than 2,260 inward investment projects in the UK. The good news is that that is up by 2% on the previous year and the investments secured over 75,000 new jobs, which is a huge number. However, there is one reason to be cautious, on which I specifically challenge the Minister. We are told that the jobs figure is down by 9% from 2015-16, so I invite him to explain why that is. Obviously the number of projects being invested in is still rising, but why are the jobs figures not quite as high as before? Of course I welcome the jobs that are being created and retained; in the south-west region alone, there have been nearly 3,500 new jobs and I very much welcome them.
Let me turn to the specific regional figures. As one would expect, London and the south-east is the region of the UK that attracts the most FDI. My hon. Friend the Member for Stirling (Stephen Kerr) mentioned Scotland, which receives the next largest amount of FDI. Again, that shows the strength of the whole United Kingdom, which is good for our United Kingdom. However, I challenge the Minister specifically about the south-west, my own region—other speakers will no doubt champion their own region. Although I welcome the 3,500 new jobs in the south-west, I invite the Minister to ensure that there is sufficient FDI in the regions outside London and the south-east.
David Simpson (Upper Bann) (DUP)
The hon. Gentleman will know that Northern Ireland has a land border with the Republic of Ireland, where corporation tax is 12.5%. We hope to neutralise that and have corporation tax at the same rate. Does he agree that although there is a lot of FDI in Northern Ireland, as we move forward after the vote last night, we will remain part of the United Kingdom out of the EU and the future is bright?
Michael Tomlinson
I am very grateful for that intervention. I will mention Northern Ireland in relation to the “Britain is great” project. The hon. Gentleman is absolutely right. As I said earlier, I am optimistic about the future of our country in a post-Brexit world.
Foreign direct investment is important for a number of reasons. It is important for job creation, which I have touched on, and for growth. Businesses in receipt of FDI have been shown to be more productive. All those things raise living standards, and they are why I challenge and invite the Minister to ensure that all regions across the United Kingdom—the south-west in particular—benefit. It is right and proper that London and the south-east attracts FDI—it is to be expected that our capital city should be the largest recipient of FDI—but I ask the Minister to ensure that all regions are attractive.
I declare an interest as chairman of the all-party parliamentary group on youth employment.