The UK will host a major International Investment Summit in the autumn as part of the new Labour administration’s “national mission for growth”.
The summit will be held on 14 October 2024 with up to 300 industry leaders gathering to “catalyse investment in the UK”, the government announced today.
Chancellor Rachel Reeves will speak at the event, alongside business and trade secretary Jonathan Reynolds. They are expected to say that the UK is “open for business”.
Meaningful engagement
Reynolds called the summit an “opportunity to meaningfully engage with the world’s leading businesses and investors”.
He also reiterated that investment is a key element of the government’s “central mission” to drive economic growth in the country.
“That’s why we’re taking immediate steps to increase investment right across the UK, support local skilled jobs and raise living standards in all our communities.
“Whether it is new film studios, cutting-edge technologies, or green energy, it is clear every part of the UK has the potential to benefit from private sector investment.”
Enthusiasm rising
The announcement of the summit follows a positive data release from the FT regarding mid-cap UK equities.
As of Saturday, the FTSE 250 index had risen 3.2% since the UK election, though the FT’s index for larger equities – the FTSE 100 – had increased by only 0.2%.
The FT reports that the mid-cap index usually tracks more closely to the strength of the UK economy compared to its large-cap counterpart, however, “because it is more heavily weighted towards cyclical stocks that move with domestic demand”. A rally in housebuilding and infrastructure stocks is seen as being behind the FTSE 250’s rise.
However, equities continue to fluctuate at the moment due to wider concerns about the global economy, the FT adds. The Guardian has reported today that the FTSE 100 dropped by 2% to its lowest levels since April, following a crash in the Nikkei 225 in Japan.
Interest rate cut
The Bank of England also recently announced its first interest rate cut in over four years, with its benchmark dropping to 5% on Thursday.
According to Reuters, the cut could “help to foster a cautious sense of optimism about Britain’s long-struggling economy”.