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LONDON – Britain’s Labor government is hosting its first international investment summit in London on Monday in a bid to attract foreign capital to the country.
Prime Minister Keir Starmer, Finance Secretary Rachel Reeves and Business Secretary Jonathan Reynolds will host a day-long event at London’s Guildhall, which is expected to Around 200 senior executives from the UK and overseas attended.
Former Google Chairman Eric Schmidt, Goldman Sachs CEO David Solomon, BlackRock CEO Larry Fink and GlaxoSmithKline CEO Emma Walmsley were among the guests. Poppy Gustafsson, the newly appointed investment minister and co-founder of British cyber security company Darktrace, will also be on hand to promote the UK as a place to do business.
During the event, the government will announce deregulation and billions of pounds worth of investment deals in artificial intelligence, life sciences and infrastructure, with Starmer praising “this is a great moment to support the UK”.
Starmer will tell delegates: “We will remove the bureaucracy that blocks investment and we will ensure that every regulator in the country takes growth as seriously as this room does.”
He added: “We have a once-in-a-lifetime opportunity to use our mandate to end the incoherence, policy confusion and plaster that make it difficult for investors to assess the value of any proposal.”
However, potential attendees and observers expressed frustration with CNBC over the lack of information about the summit, with details about the location and time not being released until Thursday. Some said in advance that they would not participate, while others are still It is said As of late last week, the decision to fly over was being weighed.
British Prime Minister Keir Starmer was interviewed by the media while attending the 79th Session of the United Nations General Assembly at the United Nations Headquarters in New York, USA on September 25, 2024.
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“The uncertainty about what’s going on is damaging the activity,” Dr. Bruce Morley, a lecturer in economics and finance at the University of Bath, told CNBC by phone. “There’s a lot of speculation.”
The summit, which comes just over two weeks before the chancellor’s budget, has sparked major dissatisfaction with her claims that sweeping reforms are needed to plug an alleged £22bn black hole in the public finances, but lacks details. The date follows Labour’s pre-election pledge to hold a business summit within its first 100 days in office.
Reeves has ruled out changes to corporation tax and increases to income tax and National Insurance social security payments. She also scrapped an alleged plan to hit private equity bosses with top tax rates and imposed a pledge to scrap the country’s centuries-old “non-domestic” status for the wealthy.
However, increases in capital gains tax (CGT) and inheritance tax (IHT) are still on the table, with the chancellor reportedly considering increasing CGT to 39% for top taxpayers. according to To The Guardian. This will be better than The current range is 20% to 28%depending on the assets, which investors say could hamper entrepreneurship in the country.
A Treasury spokesperson called the report “pure speculation” in an email to CNBC.
pro-business Labor government
The event is part of Starmer’s pledge to lead the most “pro-business” Labor government, with Starmer telling CNBC last month that his “first priority is to create wealth” as he uses his visit to the US to attract Wall Street Investing.
Labor has been trying to paint a more positive outlook for the economy after being accused of doomsday rhetoric in its first months in office. The company is also seeking to position itself as a reliable partner after years of turmoil including Brexit, multiple prime ministers and a bond market sell-off.
Business confidence initially rose after the party’s July election but was hit by budget uncertainty in September. Gross domestic product (GDP) edged up in August after two straight months of stagnation, but has struggled to return to modest highs earlier this year.
Amanda Blanc, chief executive of British insurance company Aviva, welcomed the government’s efforts to reassure businesses and said she expected regulatory requirements to be relaxed further.
“It’s very important that we do feel confident as business leaders and economies,” she told “Squawk Box Europe” on Monday.
Morley said the government needs to address sluggish productivity if it is to further revive economic growth, and he urged the government to use the summit to target investment in emerging technologies such as artificial intelligence and robotics.
“We are lagging behind our peers in this area. It would be a way to catch up by finding incentives to attract these types of companies,” he told CNBC by phone.
“If productivity doesn’t increase, economic activity in the UK won’t increase,” he added.
On Sunday, the government announced the establishment of a new Industrial Strategy and Advisory Committee, chaired by Microsoft UK CEO Clare Barclay, to focus on eight “growth-driving industries.” These include creative industries, financial services, advanced manufacturing, professional services, defence, technology, life sciences and clean energy industries.
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