Foreign Investment in UK

(asked on 18th November 2025) - View Source

Question to the Cabinet Office:

To ask His Majesty's Government which sectors have experienced (1) the highest growth in foreign investment, and (2) the largest decline in foreign investment, over the past three years.


Answered by
Baroness Anderson of Stoke-on-Trent Portrait
Baroness Anderson of Stoke-on-Trent
Baroness in Waiting (HM Household) (Whip)
This question was answered on 27th November 2025

The information requested falls under the remit of the UK Statistics Authority.

Please see the letter attached from the National Statistician and Chief Executive of the UK Statistics Authority.

Darren Tierney | Permanent Secretary

The Lord Risby

House of Lords

London

SW1A 0PW

25 November 2025

Dear Lord Risby,

As Permanent Secretary of the Office for National Statistics (ONS), I am responding to your Parliamentary Question asking which sectors have experienced (1) the highest growth in foreign investment, and (2) the largest decline in foreign investment, over the past three years (HL12068).

Our statistics for inward Foreign Direct Investment (FDI) positions measure the investment held by UK-resident companies that have foreign immediate parent companies. FDI positions are essentially the stock of investment held at a point in time. Our statistics are defined by the Standard Industrial Classification 2007 (SIC07), and our published results disaggregate UK total FDI into 18 industries.

· Table 1 shows the three industries with the biggest percentage increase and decrease in FDI positions at the end of 2023 compared with the end of 2020.

· Table 2 includes the three industries with the highest and lowest value increases for inward FDI positions at the end of 2023 compared with at the end of 2020.

· Table 3 gives the three industries with the highest annual percentage increase in FDI positions compared with the end of the previous year for each year between 2021 and 2023.

· Table 4 gives the three industries with the lowest annual percentage increase (biggest decrease) in FDI positions for each year between 2021 and 2023.

Yours sincerely,

Darren Tierney

Table 1: Industries with the highest and lowest percentage increase at the end of 2023 compared with the end of 2020 for inward foreign direct investment positions

Rank

Industry

Percentage change at end-2023 compared with end-2020

Highest

Administrative and support service activities

747.6

Second

Agriculture, forest and fishing

98.9

Third

Information and communication

40.3

Lowest

Mining and quarrying

-68.3

Second

Computer, electronic and optical products

-32.1

Third

Professional, scientific and technical services

-29.6

Source: Foreign direct investment involving UK companies (directional): inward[1],2

Table 2: Industries with the highest and lowest value increase at the end of 2023 compared with the end of 2020 for inward foreign direct investment positions, £ million

Rank

Industry

Change in value at end-2023 compared with end-2020
(£ million)

Highest

Administrative and support service activities

163,324

Second

Financial services

76,771

Third

Other services

65,871

Lowest

Professional, scientific and technical services

-81,542

Second

Mining and quarrying

-67,499

Third

Manufacture of petroleum, chemicals, pharmaceuticals, rubber and plastic products

-11,381

Source: Foreign direct investment involving UK companies (directional): inward1,[2]

Table 3: Industries with the highest annual percentage increase for inward foreign direct investment positions, 2021 to 2023

Year

Rank

Industry

Percentage change from previous year

2021

Highest

Administrative and support service activities

502.5

2021

Second

Agriculture, forest and fishing

51.1

2021

Third

Other services

26.8

2022

Highest

Computer, electronic and optical products

59.9

2022

Second

Mining and quarrying

36.4

2022

Third

Other manufacturing

30.4

2023

Highest

Agriculture, forest and fishing

43.1

2023

Second

Information and communication

32.2

2023

Third

Administrative and support service activities

26.4

Source: Foreign direct investment involving UK companies (directional): inward1,2

Table 4: Industries with the lowest annual percentage increase for inward foreign direct investment positions, 2021 to 2023

Year

Rank

Industry

Percentage change from previous year

2021

Lowest

Mining and quarrying

-79.1

2021

Second

Computer, electronic and optical products

-34.4

2021

Third

Information and communication

-11.9

2022

Lowest

Professional, scientific and technical services

-15.4

2022

Second

Textiles and wood activities

-8.5

2022

Third

Agriculture, forest and fishing

-8.0

2023

Lowest

Computer, electronic and optical products

-35.3

2023

Second

Transport equipment

-30.2

2023

Third

Professional, scientific and technical services

-27.2

Source: Foreign direct investment involving UK companies (directional): inward1,2

[1] Foreign direct investment statistics disaggregated by main industrial activity does not include banks, bank holding companies, public corporations and property. The FDI of these entities is included in the UK total.

[2]https://www.ons.gov.uk/businessindustryandtrade/business/businessinnovation/datasets/foreigndirectinvestmentinvolvingukcompanies2013inwardtables/current

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