The Labour government in the United Kingdom is making a concerted effort to attract foreign investment as it hosts its first
International Investment Summit in London on Monday. Prime Minister Keir Starmer, along with Finance Minister Rachel Reeves and Business Minister Jonathan Reynolds, will lead the one-day event at the Guildhall, expecting to draw around 200 executives from both domestic and international companies.
Notable attendees include former Google chairman Eric Schmidt, Goldman Sachs CEO David Solomon, BlackRock chief Larry Fink, and GSK CEO Emma Walmsley. Newly appointed Investment Minister Poppy Gustafsson, who co-founded the British cybersecurity firm Darktrace, will also be present to promote the UK as an attractive destination for business.
During the summit, the government plans to announce a relaxation of regulations and reveal investment deals worth billions of pounds in sectors such as artificial intelligence, life sciences, and
infrastructure. Prime Minister Starmer is expected to declare this “a great moment to back Britain” and promise to “rip out the bureaucracy that blocks investment.” He will also emphasize the government’s commitment to ensuring that regulators prioritize growth.
However, the event has faced some criticism due to the lack of information provided to potential attendees. Details about the location and timing were only released on Thursday, causing
frustration among some invitees. Some have decided not to attend, while others were still considering whether to make the trip as late as last week.
The timing of the summit has also been a point of contention, as it comes just over two weeks before the chancellor’s budget announcement. There is a lack of clarity surrounding the significant changes Reeves claims are necessary to address a reported £22 billion deficit in public finances. The date was set based on Labour’s pre-election promise to hold a business summit within its first 100 days in office.
Reeves has already ruled out changes to corporation tax and increases to income tax and National Insurance contributions. She has also backtracked on suspected plans to raise taxes on private equity executives and a pledge to abolish the country’s long-standing “non-dom” status for wealthy individuals. However, potential increases in capital gains tax and inheritance tax remain under consideration.
The event is part of Starmer’s broader strategy to position Labour as the most “pro-business” government, with the prime minister recently telling CNBC that his “number one priority was wealth creation.” The party is attempting to present a more positive economic outlook after facing accusations of pessimism in its early months in office. Labour also aims to establish itself as a reliable partner following years of political and economic turbulence, including Brexit and frequent changes in leadership.
Business confidence, which initially rose following Labour’s election victory in July, experienced a decline in September amid uncertainty surrounding the upcoming budget. The UK’s gross domestic product (GDP) showed a slight increase in August after two months of stagnation but has struggled to return to the modest growth rates seen earlier in the year.
Amanda Blanc, CEO of British insurer Aviva, welcomed the government’s efforts to reassure businesses and expressed expectations of further regulatory easing. She emphasized the importance of confidence among business leaders and the economy as a whole.
To address the UK’s productivity challenges, Dr. Bruce Morley, an economics and finance lecturer at the University of Bath, urged the government to use the summit to target investment in emerging technologies such as artificial intelligence and robotics. He noted that the UK is lagging behind its peers in these areas and suggested that attracting these types of companies could help the country catch up and boost economic activity through increased productivity.