Photos: Drinks at St Paul's
A late update: here are some photos from the post-summit drinks reception at St Paul’s Cathedral:
Closing summary
Time for a recap.
Investors attending the Labour government’s first International Investment Summit have announced pledges totalling £63bn today, which will create an estimated 38,000 jobs.
Spending commitments include £20bn from ‘Vampire kangaroo’ Macquarie, on projects including a rollout of fast-charging electric vehicle infrastructure at motorway service stations, over £6bn of new data centres by US tech firms, an expansion of Stansted airport, and a tie-up with US pharma firm Eli Lilly.
Jackie Wild, CEO of international technical construction group TSL (which is building Google’s £800m data centre in Hertfordshire) welcomed the pledge for more data centre investment, but warned that planning reform is needed, saying:
“It’s encouraging to see the Government facilitating investment in digital infrastructure, including data centres, which will underpin the fourth industrial revolution and stimulate growth in the UK for decades to come.
However, it is essential that international businesses have confidence in Britain’s capability to deliver the physical infrastructure to back investment. Businesses like Google, Amazon and Cyrus One are prospering here but it’s important that we now see swift progress on issues like planning reform to facilitate expansion and increased investment from businesses of their profile.”
The government also secured a £1bn expansion of London Gateway port, after the row over transport secretary Louise Haigh’s criticism of its owner’s poor business practices was defused.
Opening the event, Sir Keir Starmer said the government and investors were bound together, in the “shared endeavour of prosperity”.
Growth, Starmer argued, was “vital…if we are to steer our way through a great period of insecurity and change”.
Having ‘celebrated’ 100 days in office on Saturday, Starmer pledged to fix the UK’s public service and stabilise the economy quickly, and also repair Britain’s brand “as an open, outward-looking, confident, trading nation”.
In comments that have caused alarm, Starmer pledged to “get rid” of regulations that are holding back investment, such as building homes, data centres, warehouses, grid connectors, roads, and trainlines.
Both the Green Party and the RSPB have voiced concerns about what this will mean for Britain.
Rachel Reeves, the chancellor, told delegates that UK corporation tax would be capped at 25% for the lifetime of this parliament, in an attempt to give bosses some certainty.
She also warned that the government faces ‘difficult choices’ as she draws up the budget, and hinted that she is planning to raise employer national insurance contributions….
Reeves also announced that the UK Infrastructure Bank has been converted into the National Wealth Fund, which will be capitalised with £27.8bn to catalyse private investment in the market.
The Financial Times has calculated that Reeves has cut by a fifth the new money she is investing into the UK’s National Wealth Fund, though – from the £7.3bn originally pledged to just £5.8bn.
Updated
Reeves hints at rise in employer national insurance despite claims it breaches manifesto
Rachel Reeves has dropped her strongest hint yet that she is planning to raise employer national insurance contributions in the budget, prompting accusations Labour is about to break its manifesto promises.
The chancellor used the government’s international investment summit at Guildhall in London on Monday to warn of tax rises to come in this month’s announcement, insisting that business would understand the need for fiscal stability.
After days of rumours that Reeves is planning to impose national insurance on employers’ pension contributions, the chancellor refused to rule out doing so, adding that executives would understand the need for such decisions.
Speaking at the investment summit today, Reeves said:
“We will stick to the commitments we made in our manifesto. But you know there is a £22bn black hole over and above anything we knew about going into the election that we need to fill, and that’s not just a one year, that persists throughout the forecast period.
“So we are going to need to sort of close that gap between what government is spending and bringing in through tax receipts. But we are going to be a government that sticks to our manifesto commitments, including that one [on not raising taxes on working people].”
However…Paul Johnson, the head of the Institute for Fiscal Studies, told Times Radio today that such a move would count as a “straightforward breach” of the manifesto.
He said:
“I went back and read the manifesto and it says very clearly, we will not raise rates of national insurance.”
Reeves’s predecessor, Jeremy Hunt, agrees…
Regardless of what they say, raising Employer National Insurance is a clear breach of the Labour manifesto and a tax on working people. No amount of obfuscation can hide this.
— Jeremy Hunt (@Jeremy_Hunt) October 10, 2024
St Paul's Cathedral is closed off so that the Gods of Mammon can attend a party hosted by the Ling and Prime Minister. pic.twitter.com/ESRTWBV5qI
— ianVisits (@ianvisits) October 14, 2024
(I think “Ling” should be “King”)
Danni Hewson, AJ Bell head of financial analysis, isn’t surprised to hear that the government raised a record amount of new investment today.
She points out:
“There was simply no way the government’s much touted summit could end without a flurry of announcements promising billions of pounds in investment.
The figure of £63 billion made for a rousing crescendo to a day of optimistic rhetoric and political promises but it was impossible for all those suited and booted business leaders to ignore the elephant in the room.
“Rachel Reeves might have promised that a road map for business taxation will be set out but speculation about where that road will bend can be costly. Shares in gambling companies plummeted today as investors mulled over a potential doubling of taxes, and with the Budget still more than two weeks away confidence is fraying and businesses are crying out for the clarity and stability they’ve been promised.
What was announced at the Investment Summit?
As the dust settles at Guildhall, delegates are heading off to St Paul’s Cathedral for a drinks reception with The King, where they should be entertained by Elton John.
Here’s a breakdown of the investments announced today:
Data centres
Global tech firms announced investments worth £6.3bn in UK data centres – which ministers view as critical to enhancing the UK’s capacity in artificial intelligence.
This includes the firms CyrusOne, ServiceNow, Cloud HQ and CoreWeave making plans to open locations in the UK, including a £1.9bn data centre campus at Didcot in Oxfordshire.
Blackstone confirmed a £10bn investment in Blyth, Northumberland to create one of the largest artificial data centres in Europe, creating 4,000 jobs. Amazon Web Services announced a £8bn investment last month.
Carbon capture and storage
Announced in the run-up to the summit, as much as £21.7bn of funding will be spread over 25 years in investment from the public sector. Ministers expect this to leverage in £8bn of private sector investment from companies including BP and Equinor.
The plans will fund two carbon capture sights; one in the north west of England on Merseyside, and another in the north east, on Teesside – directly creating 4,000 jobs and supporting 50,000 jobs in the long-term.
Clean energy
Days before the summit ministers announced investment by the private sector in clean energy. This included the Spanish firm Iberdrola doubling its investment in the UK, through Scottish Power, from £12bn to £24bn over the next 4 years.
Orsted and Greenvolt will invest after the government’s recently expanded offshore wind auction, with the business department expecting this to unlock £8bn in private investment from Orsted and £2.5bn from Greenvolt.
Octopus Energy have committed to a £2bn investment in renewable energy generation, including four new solar farms in Bristol, Essex, East Riding of Yorkshire and Wiltshire.
Macquarie, the Australian investment firm – which previously owned Thames Water – will supporting investment of £1.3bn investment into new green infrastructure, including its Island Green Power solar farm in Stow.
Infrastructure
DP World are investing up to £1bn in their London Gateway container port operation, after a controversial row with the transport secretary, Louise Haigh. The new investment will fund two additional berths and a second rail terminal.
Manchester Airports Group is investing more than £1.1bn in London Stansted Airport.
Network Rail and London & Continental Railways are creating a new property company to regenerate brownfield sites across the rail estate, with a value exceeding £1bn.
Public investment
Rachel Reeves, the chancellor, announced an expansion of Labour’s flagship National Wealth Fund, involving a merger of the organisation with the existing UK Infrastructure Bank set up by the previous Conservative government.
With a total of £27.8bn, the combined entity will be based in Leeds, and have the aim to provide public money to “catalyse private investment” into the UK’s clean energy and growth industries – including green hydrogen, carbon capture and gigafactories.
The British Business Bank (BBB) will also have an expanded role, through a programme branded the “British Growth Partnership,” that will raise hundreds of millions of pounds of private money to invest in commercial projects.
Ministers say the funding will be allocated “independently of government on a fully commercial basis”. This new money will be in addition to £3.5bn of support provided by the BBB to more than 23,000 businesses last year.
Katie White, MP for Leeds North West, has welcomed today’s announcement that the National Wealth Fund will be headquartered in the city.
White, who called for this to happen in the Yorkshire Post last week, says:
“I’m thrilled that the Chancellor has confirmed the National Wealth Fund will be based in Leeds—the green finance capital of the UK. This is fantastic news for Leeds, the North, and the entire country.
Private investment is crucial for driving the UK’s green transition. With Leeds already home to the UK Infrastructure Bank, leading investment to achieve net zero, and the growing presence of the Bank of England here, our city has proven it has the expertise and ambition to develop and invest in the industries of the future.
The National Wealth Fund will create thousands of clean energy jobs, boost energy security, and contribute to tackling climate change. By working at pace with industry, the Government will unlock private investment and strengthen the economy.”
https://t.co/kS6BabvJAr
— Katie White (@KatieJWhite) October 12, 2024
Huge thanks to @yorkshirepost @piersforster @UniversityLeeds for joining the call for the National Wealth Fund to be Headquartered in Leeds. Here’s a 🧵 on why: pic.twitter.com/AeMYsSkCfY
The climate transition can be scary but it offers opportunities if we do it right. This is one of those opportunities for green jobs I talked about in the election.
— Katie White (@KatieJWhite) October 12, 2024
Green finance is a rapidly growing sector and the UK is one of the world leaders but let’s be in no doubt this is a race. Picking one of our cities to lead that race so they can specialise makes complete sense.
— Katie White (@KatieJWhite) October 12, 2024
Updated
UK announces 'record-breaking' £63bn of investment
The government has now announced the grand total of investment pledged at today’s summit, in a fashion reminiscent of Children In Need (no Pudsey Bear, though, alas).
And ….. confirming Rachel Reeves’s comments in her speech a few minutes ago, they say the summit has secured £63bn of investment and almost 38,000 jobs.
It’s wise to be a little cynical about such claims – often, companies simply bundle up plans they were drawing up anyway.
But the government are very keen to trumpet today’s event as a triumph, pointing out that they’ve secured twice as much as Rishi Sunak managed at his final investment summit in November 2023 (when there was rather more political uncertainty flowing around).
Business and Trade Secretary Jonathan Reynolds says:
“Global investors should be in no doubt that under this new government Britain is truly the best place to do business. The record-breaking investment total secured at today’s Summit marks a major vote of confidence in the UK and our stability dividend across industry and innovation.
We’re determined to deliver economic growth in every part of the UK and these investments, together with our forthcoming Industrial Strategy, will give global businesses the certainty they need as we lead the charge for the innovation and jobs of the future.”
Updated
Reeves: We will create good jobs across the country
The new government has put unlocking private investment at the heart of everything we do,, Reeves says.
Returning to the £60bn of investment announced at (or slightly before) the summit, Reeves says those pledges will mean new, high-skilled jobs, from Aberdeenshire in Scotland to Blyth in Northumberland, and to North Wales.
She concludes:
The decisions that lie ahead will not always be easy, but by making the right choices – to grow our economy, drive investment, we will create good jobs and new opportunities across every part of our country.
That is the Britain that we are building, and that is the difference that we will make together.
And with that, the chancellor leaves the stage, to a warm round of applause.
Rachel Reeves then announces that the UK’s new National Wealth Fund had been created.
It will be the UK”s new ‘impact investor’, she says, catalysing tens of billions of private investment to fund green technology.
Reeves says the UK Infrastructure Bank will now operate as the National Wealth Fund, headquartered in Leeds, with a bigger team, more freedom, and more risk capital to invest.
Reeves: corporation tax to be capped at 25% for this Parliament
Business taxation is a critical part of the government’s growth plan, Reeves continues.
Constant changes in corporation tax in recent years have caused instability, she says, so the government will produce a corporation tax roadmap.
That will mean a cap on corporation tax at 25% (its current level) for this parliament (a pledge Labour already made back in February), and a ‘world-leading’ capital allowances offer, including ‘full expensing’ [which allows firms to offset investment costs against their tax bill.]
Updated
I will deliver a balanced approach in the budget, Rachel Reeves pledges.
That means:
Fiscal and economic stability, investment over decline, in a budget that will protect living standards, repair our NHS and fix the foundations of our economy so we can build a stronger Britain.
Reeves: We face difficult choices ahead of the budget
Moving onto her budget later this month, Rachel Reeves says the government faces “difficult choices” due to the situation it has inherited.
The first step is to restore fiscal and economic stability, Reeves says.
Defending her first fiscal rule, to move the current budget into balance, she says:
Balancing the books by ensuring we do no borrow for day-to-day spending is not anti-investment. It’s the only way to ensure government and business can invest with confidence.
Government investment must be sustainable, she adds, with debt falling at the end of the forecast (this is the second fiscal rule).
It must also “crowd in” private investment too, she adds.
Updated
Rachel Reeves declares the government is ending years of instability and uncertainty, and bringing jobs back to this country.
She adds:
Britain is open for business once again.
Reeves adds that reforming the UK pension system will release more funds for investment.
Reeves: We want to be the most pro-business UK government ever
Rachel Reeves says the government want to be the most pro-business government the UK has ever seen.
To do that, she says, government and business must work hand in hand, the chancellor says.
She cites the government’s plan to remove blockages in the planning system, and end the ban on onshore wind.
Reeves: £60bn of investment announced today, creating 40,000 jobs
Back at the Guildhall, chancellor Rachel Reeves is delivering a closing keynote address to delegates at the investment summit.
Reeves begins by saying how fantastic it is to be at the Guildhall after such a “brilliant day”.
She says her optimism for Britain “burns brighter than ever”, after £60bn of shovel-ready investment was announced today.
Those commitments, from companies such as Servicenow, Eli Lilly and the Manchester Airport Group, will help create over 40,000 jobs in the UK, Reeves says.
That is a sign of the confidence that we now see in the UK economy, she says, and will help big and small businesses across the UK.
That £60bn includes £20bn from Macquarie Group for a range of projects, and – I assume – the £24bn of green technology investment announced last Friday (three days before the summit)…
Updated
Keir Starmer has also told Bloomberg TV that suggestions the UK government was considering raising capital gains tax as high as 39% was “wide of the mark.”
Speaking at the investment summit, the PM said:
“A lot of speculation is getting pretty wide of the mark,”
Asked whether chancellor Rachel Reeves could hike capital gains tax to 39% from a top rate of 28% currently, Starmer replied:
“That’s getting to an area which is wide of the mark.”
The Guardian reported last week that Treasury officials have been testing a range of 33% to 39% for capital gains tax (CGT), as the government tries to raise funds for public services.
The Royal Social for the Protection of Birds (RSPB) has described Keir Starmer’s speech this morning, in which he said he wanted to “rip out” planning laws blocking growth as “unsettling”, my colleague Andrew Sparrow reports.
Echoing earlier concerns from the Green Party, RSPB chief executive, Beccy Speight, says:
An unsettling speech from the PM this morning for those who love and value nature. Deregulation done in the wrong way is effectively dropping standards, at a time when the natural world desperately needs better protection. It’s a short-sighted tactic that could have ramifications for us all in years to come, undermining our long term prosperity - better methods, such as nature-friendly planning, would give businesses the certainty they need.
We support growth and we support the badly-needed energy transition, but not at the expense of our precious wildlife and wild places.
His very own secretary of state [Steve Reed] said recently that “nature is dying” – uncontrolled deregulation is tantamount to hammering the final nail into its coffin.
That’s from the Politics Live blog:
Starmer: We desperately need growth
Keir Starmer has told Bloomberg TV that he wants to bring in more investment, as the UK “desperately needs growth”.
The PM says:
We haven’t had meaningful growth in the economy in the United Kingdom in 14 long years. We’re determined to turn that around.
Q: Would the governmen need to be sure that Chinese retailer Shein wasn’t using forced labour in Xinjiang, before you allowed them to float on the London stock market?
Starmer won’t comment on individual cases, but talks about the need for high standards, particularly for workers.
And in a hint that all companies looking to sell shares in London will face scrutiny over workers’ rights, Starmer says:
“Of course we’ll be looking at any issue…with a particular feature on the rights of the workforce.”
Updated
Britain’s competition watchdog has pushed back against some implied criticism from the prime minister today.
In his speech this morning, Keir Starmer told international investors he’d ensure that the UK’s economic and competition regulators “take growth as seriously as this room does”.
The Competitions and Markets Authority has now rebuffed the implication that it is neglecting growth.
A CMA spokesperson has told the Guardian:
“Driving growth and innovation has been an explicit strategic priority for the CMA over the last two years. It continues to be a focus for the work we are doing.”
Macquarie commits £20bn of UK investment
Australia’s Macquarie Group have announced a £20bn package of investment in the UK today.
Attending the investment summit, Macquarie CEO Shemara Wikramanayake announced the company will help fund a network of fast-charging electric vehicle infrastructure in the UK.
The investment will see Macquarie’s portfolio company Roadchef install around 650 fast-charging points at its motorway service area sites.
Macquarie (often criticised for its management of Thames Water) says the upgraded EV charging facilities will be partly powered by 9 MW of new solar energy capacity installed on-site.
Roadchef will also test electric charging solutions for heavy goods vehicles (HGVs) at two key locations across the motorway network.
Wikramanayake (who we saw earlier today) says:
“The upgrade of Roadchef sites is our latest in a long line of investments in UK infrastructure and we have plans to invest more. We believe that infrastructure investment helps create strong foundations for economic growth, job creation, better services for the public and stronger communities. We are fully invested in the UK’s success and look forward to playing our part in delivering the investment the country needs.”
Macquarie is also planning to invest in:
5GW of new offshore wind developments, including projects off the Orkney and Lincolnshire coasts
Developing new solar power and battery energy storage projects, including the UK’s largest new solar project in Nottinghamshire by Island Green Power
Supporting investment in the gas transmission network, including upgrades to the distribution networks in North West England, West Midlands, East Midlands, East of England and London
Upgrading digital infrastructure, including bringing ultra-fast full fibre and gigabit wireless broadband to rural communities from Somerset to Cumbria
Investing in the creation of new homes, including developments in Edinburgh and Birmingham
Supporting the growth of high potential UK companies in areas such as utilities connections, wind farm performance analytics and smart metering led from Glasgow, Nottingham, and Watford
Supporting investment to build the UK’s first reservoir in 30 years [in Havant, Hampshire] alongside upgrades to essential water and wastewater infrastructure across England’s South East
Updated
Video: 'We're determined to repair Britain's brand,' Keir Starmer tells investment summit
Green Party MP for North Herefordshire, Ellie Chowns, has criticised Keir Starmer’s pledge to rip up bureaucracy to get growth moving.
Following his speech at the investment summit, Chowns says:
“Starmer’s pledge to investors that he will “cut red tape” is a tired cliché that, in practice, too often means harming environmental standards and workers’ rights. We’ve had fourteen years of successive Conservative governments promising to “cut red tape,” and all we have to show for it is a flatlining economy and falling living standards.
If Starmer is serious about attracting investment to the UK, he will need a bolder approach that delivers on the “change” he promised in his election campaign. He could start by re-evaluating our relationship with our biggest trading partner, the European Union.”
Secretary of State for Transport Louise Haigh has resisted talking about the row over her criticism of P&O Ferries and their owner DP World, The Sun’s Ashley Armstrong reports:
I tried to ask Louise Haig if she felt like she’d been thrown under the bus on DP Ports debacle. She marched off.
— Ashley Armstrong (@AArmstrong_says) October 14, 2024
As reported earlier, DP World are attending the summit, and have announced a £1bn expansion of its London Gateway container port.
Updated
London Mayor Sadiq Khan is hoping that the Labour governmnet will agree closer alignment with the European Union, and isn’t ruling out an eventual return to the single market.
Speaking at the Government’s international investment summit, he told the PA news agency:
“I’m quite clear that all successful countries do the most trade with their nearest neighbours, that’s one of the signs of success.
We’ve got on our doorstep, not just friends and colleagues and family indeed, we’ve got a market of more than 500 million people.
The good news is the Prime Minister spent a lot of the last three months visiting friends in Europe, whether it’s the president of France, the prime minister of Italy, the chancellor of Germany or the European Union, indeed, in Brussels.
The current Brexit deal we have comes up before review next year. I’m hoping, unlike last time, there will be closer alignment, rather than divergence.
We should be looking at a whole host of issues and talking about them – whether it’s a youth mobility scheme, whether it’s seeing what we can do to bring people closer together.
I think the reality is, in the short term, we probably aren’t going to get back as members of the single market. But it’s something we shouldn’t be scared to talk about.”
Updated
M&G chief: UK renaissance underway amid growth push
Andrea Rossi, the chief executive of the London-based investment giant M&G, says global investors are looking at Britain differently under a Labour government.
Speaking at the investment summit, Rossi told my colleague Richard Partington:
“The last years have suffered a little bit, you know, Brexit, Covid, and instability. There is to a certain extent a renaissance of the UK, as people are looking at the UK again. Not only local investors but international investors.”
With more than £100bn invested in the UK already, M&G is one of the headline sponsors of the event, and is clearly in tune with the message the government wants to send. Rossi says he has held meetings with ministers throughout the day who all “speak the same language” on the priority of economic growth. “The alignment [between them], that relentless focus on growth. That is what is attracting people.”
Rossi says M&G is keen to see progress on reducing burdensome regulation, particularly in the planning system, but that he is also full-square behind the government’s employment rights reforms and the need to maintain some regulations to ensure a sustainable economy.
He says:
“If you want to have sustainable growth you need to make sure you take care of the most important stakeholders. Who are the most important stakeholders? It’s the people working.”
However, he warned against Rachel Reeves announcing large tax increases in the budget in two weeks’ time, saying:
“You’re not going to grow the economy if you tax the economy much, much more. Because then you’re killing the economy. You might have a short-term benefit but long-term there’s no benefit at all.”
Asked about the suggestions that the chancellor could raise capital gains tax, Rossi said:
“I cannot speculate on what she will do. But I’m sure that they will balance very well, whatever they do, with their ultimate ambition of growing the economy. And I’m convinced they’ll be very pragmatic about it.”
In a further attempt to woo international investors, the UK has launched a consultation into its new industrial strategy, dubbed Invest 2035.
The foreword of the strategy begins by declaring “Growth is the number one mission of this government” – which we’ve already heard from Keir Starmer today.
The government says its industrial Strategy will be “ambitious and targeted”, saying.
Its primary objective is to drive growth, by taking advantage of the UK’s unique strengths and untapped potential, enabling the UK’s world-leading sectors to adapt and grow, and seizing opportunities to lead in new sectors, with high quality, well-paid jobs.
It will shape the type of growth being pursued: the Government will also seek to support Net Zero, regional growth, and economic security and resilience. It will be grounded in long-term stability, a renewed commitment to free and fair trade, and a pro-business approach focused on reducing barriers to investment in the UK.
And as expectred, it foguses on eight growth-driving sectors: Advanced Manufacturing, Clean Energy Industries, Creative Industries, Defence, Digital and Technologies, Financial Services, Life Sciences, and Professional and Business Services.
But there’s very little about migration – an issue which Eric Schmidt identified as crucial earlier today.
The document says:
Our people are supported by an immigration system that attracts the brightest and best, with the UK being the second most attractive country in the G20 for young people.
Sam Coates of Sky News has whizzed through the document, and plucked out the key points:
The government’s Industrial Strategy Green Paper - what does it amount to?
— Sam Coates Sky (@SamCoatesSky) October 14, 2024
1/ Not ruling out subsidies to support advance manufacturing (thought not promising them either) pic.twitter.com/fGnS4vxRtf
2/ Acknowledgement there’s a +long+ list of things to fix before we can build lots of clean energy projects
— Sam Coates Sky (@SamCoatesSky) October 14, 2024
The UK doesn’t yet have the skills, the costs in the UK are too high and other counties are cheaper pic.twitter.com/s9nQIOFKwT
3/ Creative industries begging to “maximise access to important markets to tour and collaborate” but EU sources tell me agreement on that is a long way off pic.twitter.com/vX6n9on4GK
— Sam Coates Sky (@SamCoatesSky) October 14, 2024
4/ There are “issues that inhibit or prevent growth in the defence sector” though don’t spell them out pic.twitter.com/Y59HzFtMbI
— Sam Coates Sky (@SamCoatesSky) October 14, 2024
5/ The “free and fair trade” part of the strategy doesn’t mention trade deals
— Sam Coates Sky (@SamCoatesSky) October 14, 2024
Instead it’s economic partnerships… pic.twitter.com/x2yqgmHCmU
6/ There’s a long list of things the industrial strategy has yet to consider:
— Sam Coates Sky (@SamCoatesSky) October 14, 2024
skills, recruitment of international talent, data, innovation, technology adoption and diffusion, business finance, competition, regulation, energy prices, grid connections, planning, and… pic.twitter.com/4Di8RC6nS3
7/ The UK needs a healthier, better skilled population pic.twitter.com/xjEsBPnhIk
— Sam Coates Sky (@SamCoatesSky) October 14, 2024
8/ Sounds like tough decisions coming in the Get Britain Working white paper
— Sam Coates Sky (@SamCoatesSky) October 14, 2024
(Though it’s only a white paper - a consultation) pic.twitter.com/uR6cLcNs41
9/ High energy costs “are a major barriers to growth and investment” pic.twitter.com/D6VCOBHL1D
— Sam Coates Sky (@SamCoatesSky) October 14, 2024
10/ Government acknowledge it’s on course to miss 2030 clean energy promise without fixing 5-10 year delay of connecting to the grid pic.twitter.com/48ZH7LPs6x
— Sam Coates Sky (@SamCoatesSky) October 14, 2024
11/ Gvt promises to stop regulators impacting growth …. (this is the “Thames Water” promise) … but that’s a tricky balance to strike pic.twitter.com/jr8hp8mkxQ
— Sam Coates Sky (@SamCoatesSky) October 14, 2024
12/ An explicit aim of government is to “boost investment and increase pension pots”
— Sam Coates Sky (@SamCoatesSky) October 14, 2024
Does that mean nothing on additional tax on pensions in the Budget?? pic.twitter.com/0GVxyXslHV
13/ The strategy promises “Competitive corporate taxes” promised but this mainly involves corporation tax pic.twitter.com/T5YEzhZc5C
— Sam Coates Sky (@SamCoatesSky) October 14, 2024
14/ Mutual recognition of professional qualifications important (but that seems a long way off) pic.twitter.com/7JR3CWAHzP
— Sam Coates Sky (@SamCoatesSky) October 14, 2024
15/ And almost nothing in this industrial strategy on migration
— Sam Coates Sky (@SamCoatesSky) October 14, 2024
Updated
Stop Sizewell C protesters at the UK's international investment summit
It’s nearly as busy outside the Guildhall as inside, with a second group of protestors holding a demonstration.
Campaigners opposed to the Sizewell C nuclear plant unfurled two banners saying “Sizewell C is a Toxic Investment” this morning outside the investment summit.
They hope to persuade international investors not to support the project.
Alison Downes of Stop Sizewell C says:
“It’s fantastic that Britain is open for business, but we’re here to tell international investors that, unless they want to find themselves embroiled in another HS2, they should put their money into renewables instead of slow, risky, expensive, “toxic” Sizewell C.
The reality is that Sizewell C cannot help the Labour government achieve its Energy Mission, and if UK investors won’t touch it, neither should international ones, nor the taxpayer.”
The ‘Final Investment Decision’ (FID) on the proposed plant on the Suffolk Coast has already been delayed. Yesterday, the GMB and Unite unions urged the government to sign off the investment quickly.
Australian investment bank Macquarie is also attending today’s investment summit, despite having been criticised for its role in the privatisation of England’s water industry.
Shemara Wikramanayake, Macquarie’s CEO is there, and was seated next to chancellor Rachel Reeves…
…and also appears to have been chatting to Pat McFadden, chancellor of the Duchy of Lancaster:
Last year Wikramanayake insisted that the investment bank’s UK nickname, the “vampire kangaroo”, was disappointing, after it piled debt onto Thames Water which is now close to collapse.
Climate campaigners are unimpressed by today’s announcement of more investment for Stansted airport (see earlier post).
Alethea Warrington, head of aviation, heat, and energy at climate charity Possible, says:
“Expanding airports to encourage even more flights is the last thing we need if we’re going to tackle the climate crisis.
“Instead of allowing high-carbon sectors such as aviation to expand, the government should rein in aviation growth by banning private jets and taxing frequent flyers, and focus on supporting investment in clean, low carbon technologies and climate-friendly transport.”
Larry Fink is one of the most powerful investors at today’s summit; on Friday, his asset manager BlackRock reported that it now holds assets of $11.5 trillion.
He’s been meeting ministers this morning, including deputy PM Angela Raynor:
And chancellor Rachel Reeves:
While the cream of global investing hobnob inside the Guildhall, outside there are protesters calling for a wealth tax to fund investment.
Youth climate justice campaign group Green New Deal Rising are displaying a banner reading “Tax Extreme Wealth”, as they urge Rachel Reeves to target the wealthiest in this month’s budget.
Fatima Ibrahim, co-director of Green New Deal Rising, says:
“Private investment alone will not fix our economy - and it certainly won’t rescue our public services or tackle the climate crisis. Instead of taking freebies from the super-rich and abdicating responsibility to the private sector, which has polluted our water and ruined our railways, it’s time for Rachel Reeves to make the common-sense, popular choice to end the unfairness in our tax system.
She must choose to tax extreme wealth by implementing an annual 2% tax on assets over 10 million in the Autumn Budget. Doing so would unlock billions for urgently needed public investment to benefit our communities, not just wealthy shareholders”.
Today, we showed up at the International Investment Summit #UKinvestment to deliver a clear message: private business won't save us.
— Green New Deal Rising (@GNDRising) October 14, 2024
We need public investment for public priorities.
That's why, this Autumn budget, the chancellor must tax extreme wealth 👇🏼 pic.twitter.com/52qrbznQQO
Sir Elton John to perform tonight
Labour is pulling out all the stops for its international investment summit.
Business leaders gathered in the City of London have just been told Sir Elton John will be performing tonight at an ultra-exclusive dinner reception at St Paul’s Cathedral, where King Charles will be in attendance.
The dinner will include dining courtesy of the three-Michelin-starred-chef Clare Smyth, at an event with the cabinet, where one Labour staffer said there had been “fights” over who would get to attend because of the very limited capacity for company bosses.
Sir Lucian Grainge, the chair of Universal Music Group, confirmed that the Rocket man would be performing this evening, while speaking on a panel session with the culture secretary, Lisa Nandy, on the “UK’s soft power as a hard investment opportunity”.
“He’s an ambassador. He wanted to be here,” says Grainge, to applause and whoops from some of the big beasts of capitalism attending the event at the Guildhall in the City of London.
“I wish you could see the politicians’ faces. We spend a lot of time in meetings, we don’t get out very often,” Nandy replied. Perhaps, but would it be unfair to suggest that Labour politicians have been in hot water of late for taking freebies to attend superstar gigs?
The panel session, involving Gareth Southgate, the former England manager, and the head of production at Netflix, Anna Mallet, highlighted how Britain punches above its weight for cultural capital.
Southgate talked up changes to kick-off times in the Premier League as a key for attracting TV money into England’s national sport. “A lot of people didn’t like,” he says, but it brought the “ability to bring in best talent. The best players wanted to come here, and the product improved.”
Grainge warned the UK was “at a crossroads” in the market for culture, as new technologies helped the rise of talent around the world - including Latin America, India and China (a country where he says it was an “entirely counterfeit market” 20 years ago but is now the seventh biggest in the world).
Saying he is spending more time in the UK recently, as a market where Universal will invest, he adds:
“The advantage for the UK, about the UK as an investment, is that it has as the prime minister keeps repeating, is the rule of law, a non-politicised justice system, and it respects and rewards for investment and innovation and creativity around copyright and IP.”
Updated
Photos: Summit attendees
US tech firms to invest £6.3bn in UK data centres
A group of US tech firms have announced they will invest over £6bn in UK data centres.
ServiceNow, CyrusOne, CloudHQ and CoreWeave would invest a combined £6.3bn in UK data centre technology, the government says at today’s investment summit.
Technology Secretary Peter Kyle calls the move a ‘vote of confidence’ in Britain, which will take the total investment in UK data centres to over £25bn since the government took office in July.
CloudHQ is set to develop a new £1.9bn data centre campus in Didcot, Oxfordshire.
Kyle says:
Tech leaders from all over the world are seeing Britain as the best place to invest with a thriving and stable market for data centres and AI development.
Data centres power our day-to-day lives and boost innovation in growing sectors like AI. This is why only last month, I took steps to class UK data centres as Critical National Infrastructure giving the industry the ultimate reassurance the UK will always be a safe home for their investment.
Today’s drumbeat of investment is a vote of confidence in Britain and our approach to work with business to deliver sustained growth for all.
UK announces £279m tie-up with Eli Lilly
The government has also announced a “landmark collaboration” with pharmaceuticals giant Eli Lilly, worth £279m, to accelerate the delivery of next-generation medicines.
Eli Lilly has expressed an intention to invest in the UK, as part of a collaborative partnership with the government announced at the International Investment Summit today.
Eli Lilly plans to launch the first ‘Lilly Gateway Labs’ innovation accelerator in Europe. It will support early-stage life sciences businesses, by providing them with lab space, mentorship, and potential financial backing.
Health and Social Care Secretary, Wes Streeting, says:
“For all the challenges facing the health of our nation, we have two huge advantages: some of the world’s leading scientific minds, and a National Health Service with enormous potential. If we can combine the two, patients in this country can reap the rewards of the revolution in medical science unfolding before our eyes.
“This announcement helps the UK take its place as a world leader in life sciences and brings life-changing treatments closer to being a reality for NHS patients. Partnerships like this are key to building a healthier society, healthier economy, and making the NHS fit for the future.”
The collaboration intends to explore new ways of delivering health and care services to people living with obesity, the government adds.
Eli Lilly makes an anti-obesity drug called Zepbound in the US, or Mounjaro in the UK. Last week, the NHS said it would offer Mounjaro to nearly a quarter million people as part of a three-year plan.
Updated
£1.1bn investment to expand Stansted
A five-year, £1.1bn investment to grow London Stansted has been unveiled by the Prime Minister at the International Investment Summit.
Just over half the money, some £600m, will go on previously announced plans to expand the airport’s terminal by a third, as it grows its capacity from 29m passengers to 43m per year.
Another £500m will be spent on other enhancements to the existing terminal and to the wider airport, notably a 14.3MW on-site solar farm to support Stansted’s increasing electricity demands, including its new EV charging forecourt.
Construction is expected to begin next year and take two to three years to complete.
Planning permission for expansion was granted last year, but the cost of the overhaul has not previously been released – and with owning group MAG being one-third owned by overseas investors IFM (if mainly by Manchester councils) the announcement brings an element of foreign money to the UK.
Transport secretary Louise Haigh said:
“Transport is central to this government’s core mission of growing the economy. This is about giving companies like MAG the confidence to invest, boosting regional and national economic growth, and supporting the aviation sector while also meeting our existing environmental obligations.”
Ken O’Toole, CEO of MAG - which owns Manchester and East Midlands Airports as well as Stansted, said:
“Aviation is an essential enabler of the success of the UK’s key high-value industries, and we look forward to helping the government achieve the highest sustained growth in the G7 through the sustainable growth of our airports.”
NEW: PM at investment summit announces a £1bn deal with Manchester Airport Group to expand Stansted. PM says it open up new routes for work and holiday destinations
— Beth Rigby (@BethRigby) October 14, 2024
Starmer says deal the “first of tens of billions worth of inward investment deals that we will sign today,…
Trio of professors win Nobel economics prize for work on post-colonial wealth
Speaking of Nobel prizes… two UK-born academics are among a trio of US-based professors who have just won this year’s Nobel prize in economics, for showing how the types of institutions introduced by colonisers have helped determine whether a country is rich or poor today.
The explanation put forward by Turkish-American Daron Acemoğlu, Sheffield-born Simon Johnson and Briton James A Robinson, suggests that inclusive institutions for the long-term benefit of European migrants ended up resulting in more prosperous societies in the long term.
However, they found that in countries where the aim was to exploit the Indigenous population and extract resources for the colonisers’ benefit, the impact has been detrimental, and resulted in far poorer societies, leaving some countries trapped in low economic growth cycles.
Updated
UK urged to expand 'high-skilled' immigration to help with AI
Q: How can British companies attract the talent it needs for the artificial intelligence revolution?
Former Google CEO Eric Schmidt says:
A pro-growth agenda would start with high-skilled immigration, which is now in place here and should be expanded.
Schmidt points out that a lot of “incredibly smart people” are now getting graduate degrees in AI.
The key, he says, is either to keep them in Britain or get them to move here from Europe.
Schmidt agrees that more AI talent is needed, as the technology is hard, complicated, and it’s being built right now.
He admits:
Sometimes it doesn’t make sense to me, and I have a PhD in the area.
But with a little bit of time, and the right leadership., Britian can have all those people.
Schmidt points out:
They love living here.
A good moment to wrap up the session.
Updated
Q: How can the UK win the battle for AI talent?
Keir Starmer argues that Britain is in a good position now, in the top three in the world for artificial intelligence thanks to world-leading universities.
He agrees that the UK needs to attract top talent. Making it clear that AI matters to the UK should help the country hold its leading position, he says.
Starmer urged to take action on data centres
Former chief Eric Schmidt then fires a warning to Keir Starmer that Britain risks missing out on the move to data centres, which are notoriously energy-thirsty.
Schmidt tells Starmer, on the stage at the investment summit:
The demand for energy for data centres is massive.
We need you to approve the necessary steps to make these data centres in Britain, because your research scientists, your companies, your citizens all need these things.
Schmidt argues that investing heavily in AI will pay off, by finding ways to improve energy efficiency – finding the solutions to the energy transition faster.
Updated
GSK chief Emma Walmsley turns to the health service…
Keir Starmer says the UK is “rightly proud” of the NHS, set up by Labour over 70 years ago.
The simple truth is that simply putting more money into the health services as it is won’t make it fit for the future.
The PM insists he’s not talking about changing the principle of healthcare being free at the point of use.
Instead, he says there is huge potential for AI to improve the delivery of public services, such as health care. He cites technology using AI to scan for liver cancer – which he’s seen, and which massively improves the chance of spotting the disease early.
Eric Schmidt backs up this point, saying computer vision is now more accurate than human vision, so can do a better job of spotting early signs of illness.
Eric Schmidt: UK's smart, stable civil servive is an AI asset
Former Google chief Eric Schmidt tells the summit that the Science Museum down the road shows how the industrial age was invented here in the UK.
There’s every reason to think that artificial intelligence will have the same level of impact. And by the way, it was invented right here too, in particular in Kings Cross, which I think is..
“My constituency”, says Keir Starmer proudly, pointing out that Demis Hassabis winning the Nobel prize last week was “absolutely amazing”.
I said to him yesterday, I feel proud, he should.
Schmidt then eulogises about AI, arguing that AI will make everyone at least twice as productive.
That means Starmer can make twice as many speeches…
…The PM suggests this might not be popular, winning some laughs in the room…
while a firm such as GSK can make incredible life-saving drugs twice as quickly.
The key to AI is efficiency gains, Schmidt adds, which will lead to a massive wave of investment and higher incomes for people.
Schmidt points out that last year the UK laid out the core structure of AI safety (under Starmer’s predecessor, Rishi Sunak).
He says Britain is in a good position to take the lead on AI, as:
The UK has frankly stronger civil servants, who are smarter and more committed to this, and are frankly stable, so you can work with them.
There’s every reason the UK can build the AI world, and also help deal with the ‘guardrail’ issue, Schmidt adds.
GSK CEO Dame Emma Walmsley then asks:
Q: Where does Britain sit in a global setting, post-Brexit?
Starmer says that the Brexit vote gave the impression that Britain was turning in on itself, and less interested in the outside world.
The PM says he’s been focused on resetting the UK’s international relations, to make it clear that we want to play our old role on the world stage, as a “confident, outward-looking, value-driven” country that sticks to agreements it makes.
Updated
Schmidt: UK won't hit 2030 energy goal without changes
Sat alongside Starmer, former Google chief Eric Schmidt says he was “shocked” when Labour became strongly in favour of growth.
Taking his chance, Starmer chirps up with:
Wealth creation is the number one mission of a Labour government… It’s true.
Schmidt says he knows Starmer believes this.
Having spoken with investors at the summit in recent days, Schmidt has good news for Starmer, saying:
There’s plenty of money that’s going to come into the country if you achieve what you’re just said.
Schmidt suggests the government needs a minister of “anti-regulation”.
But the bad news, he argues, is that in the UK system there are “so many ways that people can say no”. Businesses would rather have a single person who can give a yes or no answer.
Schmidt warns Starmer that Labour’s goal of making Britain a clean energy superpower by the end of the decade is at risk, saying:
The cost of capital and the delay is killing you.
And furthermore, you’re not going to achieve your 2030 energy goal – which is laudable – without fixing this.
Updated
Starmer: We need to streamline planning
Starmer is now holding an “in conversation” event with former CEO and chairman of Google Eric Schmidt, moderated by the CEO of GSK Dame Emma Walmsley
Walmsley starts by asking about competitiveness, saying:
Q: How will we make sure that the costs of doing business in Britain, and the regulatory environment, are competitive, compared to the G7 and the rest of Europe?
And taking a long-term view, what do you most want to achieve for businesses on your watch to encourage them to bet on Britain?
Starmer starts by criticising the ‘sticking plaster’ politics of the previous government, saying he is leading a mission-driven government – and the number one mission is economic growth.
That provides a ‘yardstick’ for taking decisions.
Secondly, he again cites Labour’s chunky majority in parliament – meaning there is stability, decisions taking today can be measured in ‘years, not months’, and there’s power to take difficult decisions.
He says he wants to champion the brilliance of the UK economy, and remove the ‘inhibitors’ such as planning.
It takes far too long to get decisions on planning, measure in years not months. We’ve got to streamline that, and we’ve already started.
On regulation, Starmer says the ‘volume’ of regulation, and the number of regulators “pulling away” at issues, is a problem that needs to be stripped away.
He also cites the appointment of ex-Darktrace CEO Poppy Gustafsson as UK investment minister, last week (just in time for the summit).
Starmer adds that he wants a partnership between a ‘mission-driven government’ and the private sector.
That means working together, where the government can clear the path to help companies succeed.
Starmer: It's time to upgrade UK regulators' regime, and to back Britain
As flagged this morning, Starmer then pledges to “look at regulation”, and remove rules that are holding back investment.
The PM says:
“Where it is stopping us building the homes, the data centres, the warehouses, grid connectors, roads, trainlines, you name it…. then mark my words, we will get rid of it.
He cites the example of the East Anglia Two windfarm, where regulators demanded 4,000 documents (not simply pages) when assessing the proposal…. Once it was finally signed off, it was held up by other two years by a judicial review.
That will deter investors from the UK, Starmer says, adding:
It’s time to upgrade the regulators’ regime, and make it fit for the modern age.
Starmer says the government will “march” through the regulators, and makes sure they take growth as seriously as the investors in the room today.
The door is open for business leaders to voice concerns to Starmer and his team, the PM adds.
He concludes:
It’s time to back Britain.
Don't worry about Labour's workers' rights bill, Starmer tells investors
Keir Starmer then tells international investors they shouldn’t be worried about Labour’s employment rights bill, introduced last week.
Let me be clear, they are “pro-growth”, Starmer insists.
Workers with more security at work, with higher wages, is a better growth model for this country, he points out, and will bring much-needed dynamism to the economy.
Updated
Starmer then runs through four crucial areas for his plan (admitting that CEOs prefer lists of three, not four)
1) Stability. He says there is a ‘golden opportunity’ to end the era of chop and change, citing his large majority won in July.
2) Strategy. Building a ‘more strategic architecture’ for growth, including the creation of a national wealth fund and Great British Energy, and the recent pledge to fund carbon capture and storage projects.
Starmer says his government is not in the business of picking individual winners, but ti does want to build on its strengths.
Verging into sporting metaphors, he says he wants to make UK businesses match-fit, by:
Mowing the grass on the pitch, making sure the changing rooms are clear and comfortable, the training ground is good.
The new industrial strategy is fundamental to the plan, Starmer says.
3) Britain’s global standing. Starmer says “We’re determined to repair Britain’s brand as an open, outward-looking, trading nation”, so people know it’s a stable, trusted, rule-abiding partner.
Starmer says that somehow, in “the circus after Brexit”, the last government “needlessly insulted our closest allies”.
There were also a few “choice Anglo-Saxon phrases for businesses”, Starmer reminds his audience (a reference to Boris Johnson’s notorious “fuck business” retort to employer concerns about a hard Brexit).
4) Regulation. Starmer says he doesn’t see it as good or bad, that’s “simplistic”.
He points out that the tragedy at Grenfell Tower showed the importance of regulations.
But he accuses the previous government of hiding behind regulators, and deferring decisions to them because it was weak or indecisive, or just not committed to growth.
Starmer then points out that the UK has problems too.
The public sectors need urgent care, while the public finances need the ‘tough love’ of prudence (chanelling Gordon Brown there).
We will fix the public services and stabilise the economy, quickly, he promises.
We don’t want any of the problems associated with our inheritance misting up the shop window of Britain.
Starmer: growth is critical to my political project
Starmer turns to the issue of stability, saying
“It’s not just that stability leads to growth, though we all recognise that.
It’s also that growth leads to stability. Growth leads to a country that’s better equipped to come together and get its future back. And that’s why it’s always been so critical to my political project.
The key ingredient of that great moderation that we became accustomed to before the financial crash, but which together, in partnership, we have to earn again.
Everyone invited to the summit is here for that reason, Starmer says
Private sector investment is the way we rebuild this country and pay our way in the future.
This is a great moment to back Britain, he insists – to back England, Scotland, Northern Ireland and Wales.
He cites the “amazing” education sector, the largest tech sector in Europe, a leading position in ley sectors such as artificial intelligence, clean energy, the creative industries.
A legal system that sets high standards around the globe, and a geographical location that means we can speak to colleagues in the Americas and in Asia in the same day.
Starmer: economic growth is vital to reach calmer waters
Starmer continues, saying that we live in an age where political fires rage across the world – conflict, insecurity, and “a populist mood” that opposes the open values that “many of us” at the investment summit hold dear.
And yet, we also live in an “age of great possibility”, he argues, with businesses making investments, in areas such as digital technology, clean energy, medicine, life sciences.
Each have the potential to change how we live, and to improve the lives of working people, the PM says.
Starmer then argues that you can “stops a country turning in on itself” if you provide the benefits of growth to people., saying:
In times like this, economic growth is vital – as it always been – if we’re to steer our way through a great period of insecurity and change and onto calmer waters.
Starmer: this is about “shared endeavour” of prosperity
The shared ambition at today’s investment summit is growth, Keir Starmer says.
Business leaders have to grow their business, while the PM has to grow the country.
The “shared endeavour” of prosperity is what binds investors and the government together, he insisted.
Starmer says he’s determined that the UK becomes the highest growing economy in the G7 – that’s the way to deliver the change he has promised.
Starmer addresses investment summit
Sir Keir Starmer now takes the stage at the Investment Summit.
He says it’s fantastic to see so many attendees at the new government’s first summit.
Some investors have flown a long way to come to the Guildhall, the PM says, to share the “precious gift” of your time.
He tells investors that he briefly pursued his education on the flute at the nearby Guildhall School of Music, with “long hair and very flared jeans”.
Starmer says all photographic evidence has been destroyed (if you know better, get in touch!).
Jonathan Reynolds wraps up by telling investors that Britain is making a “world-beating offer” for those who make the UK their investment destination of choice.
He hopes they will leave “inspired”, and confident that the UK has a government that wants them to be at the forefront of our new, pro-innovation, pro-business, pro-wealth creation economy.
Watch the Investment summit here
Here’s a live feed of the key speeches at today’s International Investment Summit:
Business secretary Jonathan Reynolds adds that the UK government is guided by four key principles:
Building long-term stability
renewing its commitment to free and fair trade
cutting costs for investors
working in partnership with business and trade unions
He tells the investment summit:
Our industrial strategy will create long-term, sustainable, inclusive and secure growth.
The strategy will focus on eight areas, Reynolds adds: advanced manufacturing; clean energy industries, creative industries; defence; digital and technologies; financial services; life sciences; and professional and business services.
Updated
Business secretary Jonathan Reynolds is opening today’s International Investment Summit at Guildhall.
Reynolds declares that the UK is “back”, “back at the global table”, and open for business.
The UK has so much potential, Reynolds says, citing the open economy, legal protections, incentives for innovation, and a skilled workforce.
Naomi Smith, chief executive of campaign group Best for Britain, hopes that Keir Starmer’s war on bureaucracy will address some of the hurdles created by Brexit, saying:
“Cutting red tape must include the mountain that Brexit has created for almost every part of the UK economy but particularly SMEs, touring performers and export/import businesses.
“Beneficial alignment with our largest market in areas like food standards and carbon taxes will reduce costs for businesses and consumers, give confidence to investors and boost growth.”
Major CEOs and investors arriving at Guildhall are being whisked through the front door, with umbrella carriers protecting them from the London weather (it’s pretty wet today, again).
We are delighted that Guildhall is today welcoming delegates to the Government’s International Investment Summit. Discussions are set to focus on what the UK needs to do to build on its position as a leading destination for international capital. #UKInvestment pic.twitter.com/zJJ2tCoPWb
— City of London (@cityoflondon) October 14, 2024
Journalists, though, are being let in through the loading bay entrance, points out The Sun’s Ashley Armstrong:
A fitting entrance for us riff raff journos to the investment summit. Keeping us firmly in place.
— Ashley Armstrong (@AArmstrong_says) October 14, 2024
The big hitters get to walk through Guildhall glamorous main doors with umbrella carriers pic.twitter.com/Q9X4JycDHL
£1bn expansion of London Gateway to go ahead, DP World confirms
Logistics giant DP World has confirmed that it will invest £1bn to expand its London Gateway container port, after the row with transport secretary Louise Haigh was defused by Downing Street.
The expansion, announced at today’s investment summit, will turn London Gateway, on the banks of the Thames in Essex, into Britain’s “largest container port within five years”, DP World says.
The plan is to build two new shipping berths, taking the total to six berths, all large enough for the world’s biggest container ships. This will expand the quayside at London Gateway to more than 2.5km in length.
The site will also get a second rail terminal added to handle the expected increase in containerised trade.
The pledge follows the frantic effort by ministers and diplomats to repair relations with DP World, after Haigh called its P&O Ferries division a “rogue operator” when announcing new workers’ protections this week.
DP World say the expansion will create a further 400 permanent new jobs, on top of the 1,20 workers already employed at the former oil refinery. It points out, though, that the expansion is subject to planning approval and regulatory requirements,
Sultan Ahmed bin Sulayem, chairman and chief executive officer at DP World, says:
“DP World London Gateway will help make Britain’s trade flow in the future by connecting domestic exporters with global markets and delivering vital supply chain resilience for the whole economy.
I am proud of this major investment which underlines DP World’s long-term commitment to the UK.”
New: DP World confirms it will go ahead with £1 billion of investment in London Gateway port. pic.twitter.com/XxWjS7ls2e
— Joel Hills (@ITVJoel) October 14, 2024
Photos of a meeting at the investment summit have landed.
They show global co-chief investment officer of Blackstone Lionel Assant, and Ruth Porat, the chief investment officer of Google, with Porat alongside Keir Starmer:
Updated
Key event
Q: Most investors will tell you, in private, that the biggest barrier for the UK is being outside the single market. Wouldn’t rejoining the single market be the brave thing to do?
Peter Kyle argues that the UK and Europe have to look to the future, and explore their potential as two seperate territories.
There are lots of opportunities, and barriers, that weren’t around in 2016, Kyle says, adding:
We’re looking at a trade deal that explores all the opportunities going forward.
Kyle then explains how he visited Seattle in February this year, pitching Labour’s plans to the head of Amazon Web Services.
That led to AWS’s announcement of £8bn investment in Britain last month, he says:
And on Elon Musk’s non-appearance at the summit, Kyle doesn’t explicitely say whether the Tesla/SpaceX chief was ever invited or not, before the row over his critical tweets this summer.
Kyle says the government would “love to engage” with Musk, when he has an open investment programme to compete for.
Updated
Q: Won’t some traditional Labour supporters be a little bit unnerved by the government speaking the language of the Tories – slashing red tape, getting rid of bureaucracy, getting into bed with big business?
Kyle argues everyone should celebrate that if you create a new innovation in this country it will create wealth and jobs.
Q: Why did the PM tick off one of his own ministers [transport secretary Louise Haigh] for a Number 10-approved press release [which labelled P&O a “rogue employer”]
Kyle points out that the Today Programme, and everyone else, criticised what P&O did in 2022 [it sacked its staff without notice, and replaced them with cheaper agency workers].
P&O and its owner DP World have now signed up to the government’s new workers’ rights legislation, he says, echoing his earlier point that DP World and the UK have both turned a corner.
Q: Are you so keen at the top of the Labour Party to get close to big business that you’ll ditch your own cabinet ministers’ words?
Kyle says the government is keen to show you can raise standards and attract innovation – he argues that this is happening, with DP World sticking to its £1bn investment plan (which looked shaky last week).
Q: The boss of [US pharmaceuticals firm] Eli Lily has argued that a small market, such as the UK, must be willing to regulate less than the EU to make it attractive for investors to come here. Is that the plan?
Kyle argues that the key is to regulate “smartly” and “creatively”, going back to his point about wanting to help companies get through the regulatory process without cutting corners….
Updated
Kyle: Ripping out bureaucracy won't lower standards
Peter Kyle is now on the Today programme, for a pre-investment summit grilling, where he denies that Keir Starmer’s war on red tape will lead to cutting corners.
Q: What bureaucracy will the government ‘rip out’’?
Kyle gives the example of the Regulatory Innovation Office which he announced last week.
That Office takes the learnings from Covid vaccine taskforce, to speed up deployment of innovations faster in normal times, Kyle says.
He explains that currently, it can take up to three years for a new product to get through the regulatory minefield, before it can be made available.
Kyle adds:
Not cutting corners or lowering standards, but making sure that the government takes on some of the burden of compliance, so that our nation can benefit.
Q: What if the NHS wants to hold the price of an innovative drug down, or doesn’t want to deploy a new development, anti-obesity drugs for example.
Are you willing to get rid of that red tape in order to allow big US pharma giants to push their drugs into the health service quicker?
“We are,” Kyle replies.
He points out that for the first time ever, health secretary Wes Streeting has taken responsibility for spreading innovation through the NHS.
More highlights from Peter Kyle’s morning media round:
Science and Tech Secretary Peter Kyle on P&O says their parent company DP world will be in London today at the investment summit and "we hope" they will be investing "more into the future of our country"
— Natasha Clark (@NatashaC) October 14, 2024
"They are a company that's on a journey to a place with better workers'…
Does the government still think the CEO of P&O ferries is either useless or a shameless criminal?
— Kay Burley (@KayBurley) October 14, 2024
Has the company changed their standards?
Here's science secretary @peterkyle#KayBurley SS pic.twitter.com/7Tf5aGw63d
'Surely you should have people like him in the room with you?
— BBC Breakfast (@BBCBreakfast) October 14, 2024
On #BBCBreakfast Science & Innovation Secretary Peter Kyle was questioned about why the world's richest person Elon Musk was not invited to the UK government's International Investment Summithttps://t.co/sPnirtQQqt pic.twitter.com/FiFAq4Xleu
Peter Kyle has also argued that P&O and the UK have both “turned a corner”, following the row between transport minister Louise Haigh and parent company DP World.
Asked by Times Radio about the clash, the technology and innovation secretary argued that both sides were ‘looking to the future’:
“Like your listeners, I was angry with the way P&O acted back then.
“But, actually, P&O has changed because last week we introduced workers’ rights legislation which would stop that kind of thing happening again and P&O were right there, right behind it.
“DP World, their parent company, were right behind it. They will be here today and they are continuing their £1bn investment.
“That means we’ve all turned a corner. They’ve turned a corner, our country has turned a corner and we are looking to the future.”
Haigh’s criticism of P&O was well-founded, though. After sacking 800 workers in 2022, the ferry operator paid some crew members less than half the UK minimum wage, the Guardian reported in March this year. Some agency workers received as little as £4.87 an hour.
Updated
Elon Musk, the world’s richest person, will not be at today’s summit.
It emerged last month that Musk would not be invited, following his controversial social media posts during last month’s riots.
Peter Kyle, the UK’s Secretary of State for Science, Innovation and Technology, has defended Musk’s non-appearance.
He told Sky News this morning that Elon Musk had not attended any investment summits under the previous government either.
Q: So it’s not because he calls the prime minister ‘two-tier Keir’?
Kyle denies it, saying:
Absolutely not. Our PM puts country first, party second, he’s said that numerous times.
Kyle says the summit is focused on companies who are already actively looking to make investment around the world, engaging with them and getting them here.
He says £40tn of global assets are represented in London, looking for places to invest their money; the government wants to showcase the country and win investment.
The first ministers from the British nations are all expected to attend the investment summit, as well as many regional mayors.
Mayor of London, Sadiq Khan, will be there, and says:
“I’m delighted to be attending the International Investment Summit. With a new government, we are reclaiming Britain’s reputation as a magnet for global investment - bringing with it new technology, new ways of thinking and, crucially, new jobs across our country, meaning higher living standards.
“London and the UK are open for business, trade and investment. I will continue working with the Government to forge new partnerships, reset relationships and seize the opportunity to secure long-term investment so that we can build a better London for everyone and deliver the change Britain needs.”
The former England football manager and keen Labour supporter Gareth Southgate is expected at the investment summit today.
Southgate will join actor and director Adjoa Andoh, Lucian Grainge, the chief executive of Universal Music Group, the company behind artists including Lady Gaga and Lana Del Rey, and an executive from Netflix on a panel exploring investment opportunities in the UK’s creative scene.
More here:
Business leaders: We're optimistic about Britain, and it's time to invest
Labour have received a boost ahead of today’s investment summit, with 14 top business leaders declaring that Britain has a “very real opportunity” to grow its economy.
Senior executives from some of the world’s largest investors, including Goldman Sachs, JP Morgan, Aviva, Fidelity and Legal and General, have signed a letter declaring they are “optimistic” about Britain’s economic future.
They cite Britain’s traditional strengths – education, the legal system, the City and the English language – before pointing out that “greater stability” makes the country even more attractive to invest in.
The letter says:
Sir, As global investors, we believe that there is a very real opportunity for the UK to grow its economy by attracting international investment. Britain’s educational establishments, legal system, financial services sector and language form the bedrock of a strong investment proposition.
Technological developments, advances in the energy system and greater freedom in capital flows have further enhanced Britain’s position.
With greater stability, its attractiveness is increased even further. We are optimistic about the future of the economy, and believe it is time to invest in Britain.
It’s been signed by: Amanda Blanc, Aviva; Anne Richards, Fidelity International; António Simões, Legal and General; Beatriz Martin Jimenez, UBS; Bernard Mensah, Bank of America; Bill McDermott, ServiceNow; Cath Bowtell, IFM Investors; David M Solomon, Goldman Sachs; Dr Markus Krebber, RWE AG; Filippo Gori, JP Morgan; Jonathan D Gray, Blackstone; Philipp Freise, KKR; Steve Rigby, Rigby Group; and Viswas Raghavan, Citi.
Monday’s TIMES: “Big money says time is right to buy into Britain”#TomorrowsPapersToday pic.twitter.com/qhLav9eUkY
— Allie Hodgkins-Brown (@AllieHBNews) October 13, 2024
Their point about ‘stability’ will be welcomed by Starmer, who is expected to argue today that stability leads to growth, and that growth leads to stability.
Introduction: Global investors and CEOs head to London for investment summit
Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.
Sir Keir Starmer will pledge today to scrap regulation that holds back company investment, as the UK welcomes major business leaders and investors to the new government’s first international investment summit.
Today’s summit will see Labour pitching the UK as a place where economic stability has been restored, creating the right conditions for growth and investment.
Starmer will address CEOs and investors at London’s Guildhall this morning, and vow to do “everything in my power to galvanise growth”. He’ll pledge to end the “chop and change” that has riddled Britain in recent years, deterring investment.
And on the issue of regulation, the PM is expected to promise to look at rules that “needlessly” hold back the investment the country needs, by saying:
“Where it is stopping us building the homes, the data centres, warehouses, grid connectors, roads, trainlines, you name it then mark my words – we will get rid of it.
“We will rip out the bureaucracy that blocks investment and we will make sure that every regulator in this country take growth as seriously as this room does.”
One person’s needless red tape is another’s vital standards, though, and there are fears that cutting regulation could be unsafe.
One union source has likened Starmer’s words to former PM David Cameron’s “bonfire of red tape”, telling us:
“The coalition also had a massive shake-up of red tape, and ended up taking out loads of safety regulations.”
Monday’s GUARDIAN: “Safety fears as Starmer pledges to slash red tape for investors” #TomorrowsPapersToday pic.twitter.com/4DqRBvhhdz
— Allie Hodgkins-Brown (@AllieHBNews) October 13, 2024
About 200 senior executives are signed up to participate in the summit, as well as a string of cabinet ministers, including Starmer and his chancellor, Rachel Reeves.
The government’s argues that securing new investment from major companies will help it deliver economic growth, create jobs, lift living standards, and make communities and families across the country better off.
It says ministers set to unveil billions worth of major investment deals in AI, life sciences and infrastructure.
According to the Financial Times, Starmer will unveil commitments from the private sector to invest more than £50bn into the economy. Last week, the leaders of the world’s biggest green energy companies got the ball rolling by pledging more than £24bn of new private investment.
The build-up to the summit was marred, though, by the row with Dubai-based ports company DP World, after Louise Haigh, transport secretary, called its P&O Ferries division a “rogue operator” due to its sacking of 800 employees without notice in 2022.
The government rowed back, after DP World threatened to pause a £1bn investment in its London Gateway port, with business secretary Jonathan Reynolds and Starmer placating the company, so the company’s executives should now be attending.
After Starmer gives his speech, he’ll hold a conversation with the former Google chief executive Eric Schmidt, “moderated” by Emma Walmsley, the chief executive of pharmaceutical firm GSK.
Other panels will involve the chief investment officer of Google owner Alphabet, the chair of investment firm BlackRock, Larry Fink, and Amanda Blanc, the boss of insurance group Aviva.
The agenda
10am BST: UK international investment summit opens
10.05am BST: Prime minister Sir Keir Starmer gives keynote speech, followed by an “in conversation” event with former CEO and chairman of Google Eric Schmidt.
11am BST: Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel is awarded in Stockholm
11.20am BST: Culture Secretary Lisa Nandy hosts a panel on the creative industries
4.20pm BST: Chancellor Rachel Reeves gives closing speech at the investment summit
Evening: An investment summit reception at St Paul’s Cathedral attended by His Majesty The King.
Updated
