Official Statistics

Department for International Trade inward investment results 2016 to 2017 (online/web version)

Published 6 July 2017

1. Foreign direct investment (FDI) 2016 to 2017 highlights

1.1 FDI: United Kingdom

Projects	2015-16	2016-17	% change
Involved projects	1,731	1,859	7%
Total projects	2,213	2,265	2%

Jobs	2015-16	2016-17	% change
New jobs	82,650	75,226	-9%
Safe jobs	33,324	32, 672	-2%
Total jobs	115,974	107,898	-7%

1.2 FDI projects in the UK 2012-13 to 2016-17

1.3 New jobs created in the UK 2012-13 to 2016-17

1.4 Types of FDI: United Kingdom

Types of investment projects	2012-13	2013-14	2014-15	2015-16	2016-17	% change
New investments	777	820	1,058	1,130	1,237	9%
Expansions	577	677	740	821	782	-5%
Mergers and acquisitions (including joint ventures)	205	276	190	262	246	-6%
Total projects	1,559	1,773	1,988	2,213	2,265	2%

Source: Department for International Trade

2. New projects and jobs from FDI into the UK

Region	Number of FDI projects	Sum of number of new jobs
North East	69	4,609
North West	147	6,501
Yorkshire and the Humber	132	3,872
East Midlands	74	1,796
West Midlands	151	6,570
East of England	125	3,634
London	891	20,753
South East	217	5,432
South West	101	3,402
Scotland	183	5,547
Wales	85	2,581
Northern Ireland	34	1,622

56 multiple location projects associated with 8,907 new jobs are not included.

Source: Department for International Trade

3. Top source markets for FDI projects into the UK

Source country	FDI projects	New jobs	Safeguarded jobs
Americas
Canada	72	1,788	122
United States	557	24,607	7,197
Rest of the Americas	59	1,080	205
Asia Pacific
Australia & New Zealand	127	2,197	1,803
China and Hong Kong	160	3,326	1,444
India	127	3,999	7,645
Japan	116	3,511	6,095
Rest of Asia Pacific	82	1,896	394
Europe
France	131	5,831	2,182
Germany	100	5,802	426
Ireland	56	2,914	752
Italy	99	1,482	167
Netherlands	53	2,292	546
Nordic and Baltic region	146	4,417	976
Spain	70	1,789	1,152
Switzerland	49	1,428	643
Rest of Europe, Middle East and Africa	261	6,867	923

Source: Department for International Trade

4. Sector results 2016 to 2017

Sector	FDI projects	New jobs	Safeguarded jobs	Total jobs
Advanced engineering and supply chain	146	3,716	7,913	11,629
Aerospace	47	1,818	1,275	3,093
Automotive	127	5,711	8,803	14,514
Biotechnology and pharmaceuticals	90	2,329	896	3,225
Business and consumer services	211	13,603	1,353	14,956
Chemicals and agriculture	50	787	1,044	1,831
Creative and media	151	3,654	89	3,743
Electronics and communications	115	3,170	902	4,072
Environment, infrastructure and transportation	184	6,302	1,302	7,604
Extraction industries	49	642	758	1,400
Financial services	217	8,847	2,661	11,508
Food and drink	144	4,620	2,417	7,037
Life sciences	116	2,457	1,365	3,822
Renewable energy	87	2,749	344	3,093
Software and computer services	418	10,971	1,476	12,447
Wholesale	113	3,850	74	3924

Source: Department for International Trade

Sectors are built up from categories defined in DIT’s internal database (XLSX, 83KB).

5. How Department for International Trade can help you

Whether you are a start-up, a medium-sized or family business, a corporate or an institutional investor, Department for International Trade (DIT) supports the realisation of your international business ambitions.

DIT offers flexible support packages for every aspect of your investment. Our service doesn’t stop once you are based in the UK - it continues as your business expands internationally. We have helped thousands of businesses locate and expand in the UK. We listen to their feedback to help strengthen and improve our services.

5.1 Not sure which country is best for your business?

Comparing the benefits of locating in different countries is complicated. It is our job to explain the business environment in competitor countries. We provide the detailed factual information and market insights that let you draw meaningful conclusions about the UK’s competitiveness.

5.2 Already established here, but looking to expand your business?

We can help you develop the relationships that enable expansion in the UK and exports to European and global markets. This could include: connecting you with innovation support for new products and services; using our overseas network to increase your exports; or helping you access finance.

5.3 Already decided to bring your business to the UK?

We help you set up business quickly and efficiently, saving valuable time and money by guiding you through essential steps such as choosing the right location, finding premises, recruiting staff and connecting with the value chain. We have specialists covering all the industry sectors, as well as key issues such as visas, taxation, skills, planning permission and financial analysis.

6. Contact Department for International Trade

DIT’s services to international investors in the UK are free of charge and commercial-in-confidence.

Contact DIT’s Investment Services Team or via email at enquiries@ukti-invest.com or by telephone +44(0) 207 000 9012

Investment staff at a British embassy, high commission or trade office can also put investors in touch with the Investment Services Team.

7. Methodology and quality report

7.1 Overview and background

As the government department responsible for promoting inward investment, DIT has a responsibility to record and report accurate information about all inward investment projects successfully landing in the UK during the financial year. This 2016 to 2017 report is published for the first time as Official Statistics.

7.2 Methodology and production

Data and information related to investment projects is recorded on an internal database which is accessible by teams across the DIT network, for exmple overseas posts, UK regions and local partners.

All parties involved in a project are responsible to enter the necessary data on to the system following agreed operating principles and definitions. When this is finalised (that is when revenue generating activities have begun), the record undergoes a strict verification process where an independent team reviews the information attached to each project (eligibility, value of investment, jobs created et cetera) to check for quality, accuracy and consistency of data.

All projects must meet the same established standards and criteria to be classified as a success, and there must be sufficient evidence recorded showing that the investment decision has been made, the UK company is fully registered, and that the company has started activities on the UK site. There is a range of evidence used to support each claim ranging from public press announcements to confirmation of details from the investor.

Figures about recorded FDI projects include those investments which received support from DIT and/or one of its regional and local partners (involved projects), as well as non-involved projects, meaning those projects which have landed in the UK without any involvement from DIT or partners.

Various external sources and FDI project and company databases have been used to identify, qualify and report eligible non-involved FDI projects.

7.3 Relevance

This report has been published to ensure that there is a publicly available record showing numbers of inward investment projects into the UK for the latest financial year. It also serves to present some of the functions and processes that the department adopts to promote and record this investment.

7.4 Accuracy and definitions

FDI is a cross-border investment made by a non-UK resident entity where the direct investor acquires at least 10% of the voting power or ownership. All FDI projects reported have been subject to a strict, independent verification process and have evidence to show the investment has taken place. Job figures included in this report are estimates, made at the start of each investment project and are provided by the investor.

New jobs capture total jobs likely to be created within 3 years from the start of the project. Safeguarded jobs include those jobs which were retained as a result of the additional/new inward investment.

7.5 Timeliness and punctuality

Following the final verification of 2016 to 2017 FDI projects, information is released into the public domain as soon as full quality assurance processes have been carried out. Data is based on projects landing on a financial year basis.

7.6 Accessibility and clarity

The DIT Inward Investment Results 2016 to 2017 report presents key points including market, sector and regional breakdowns. For further detailed breakdowns and comparisons with 2015 to 2016 please see gov.uk

7.7 Coherence and comparability

DIT’s definition of FDI projects covers a wide range of investment, including those projects which are not announced by companies. This and other differences in methodology and verification processes explains the difference in the FDI project numbers published by DIT and other organisations, such as Financial Times and Ernst & Young.

Whereas these DIT statistics record the number of FDI projects and jobs created/safeguarded, ONS statistics are the official source for the value of FDI flows on stocks and earnings at the UK level. See www.ons.gov.uk for further information.

8. Department for International Trade

The UK’s Department for International Trade (DIT) has overall responsibility for promoting UK trade across the world and attracting foreign investment to our economy. We are a specialised government body with responsibility for negotiating international trade policy, supporting business, as well as delivering an outward-looking trade diplomacy strategy.

9. Disclaimer

Whereas every effort has been made to ensure that the information in this document is accurate, the Department for International Trade accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned.

10. Crown Copyright 2017

You may re-use this information free of charge in any format or medium, strictly in accordance with the terms of the Open Government Licence.

To view this licence, visit: www.nationalarchives.gov.uk/doc/open-government-licence or email: psi@nationalarchives.gov.uk.

Where we have identified any third party copyright information in the material that you wish to use, you will need to obtain permission from the copyright holder(s) concerned.

Published July 2017 by Department for International Trade