Political strategy needed to show that Britain is still great for business.
If businesses are willing to venture outside London and the South East, there are great financial incentives and other support to tempt them, writes Richard Thomas.
The Government has been putting on its best face to persuade the world’s corporate giants that Britain is open for business.
At the Global Investment Conference last month Gordon Brown and Lord Mandelson worked hard to woo an impressive audience of world business leaders into investing in Britain.
A new Tax Framework for Business promises that with all future tax policy the Government will strive for competitiveness, fairness and stability, among other factors.While these are fine sentiments, most business leaders will feel they are lacking substance.
The Government’s actions do not match its words. Out of one side of his mouth, Gordon Brown is saying he will make Britain an attractive place to invest, but out of the other he is clobbering higher earners with 50%, which sends out the opposite message.
Despite such political dabbling, Britain remains a great place to do business and we must play to our strengths in attracting investment.
In deciding whether to invest in Britain, business leaders must know where to look. Specific regions – and even towns or districts within them – each have something very different to offer.Multi-national companies considering investing in Britain have a blank canvas to set up wherever best suits their needs.
If businesses are willing to venture outside London and the South East, there are great financial incentives and other support to tempt them.
We have around 500 economic development agencies at various levels working hard to bring business to their areas. Those in regeneration areas, such as Sheffield and Liverpool, are offering great deals and will do everything they can to pull in investment.
Business grants, cash for research and development, and loans are all up for grabs if a business will bring jobs and prosperity to an area. The trick is to talk to as many development agencies in different regions as possible to weigh up what is on offer.
We may never be able to compete with Ireland’s 12.5% corporation tax, but we do have a large skilled workforce, a good geographical location and a great track record in attracting firms in electronics, software, IT, telecoms, life sciences, renewable energy, financial and business services, creative industries and nanotechnology.
Attracting inward investment is a lengthy process and a consistent, long term strategy is needed to show the world that Britain is still a great place to do business.
Richard Thomas is the former publisher of Corporate Locations magazine and the founder of www.locations4business.co.uk
