Analysis suggests that a quarter of the UK’s summit investment happened before Labour won

Ministers celebrated a record total of £63 billion at an event in London, but it seems that £16.5 billion was raised before the election in July.

About a quarter of the investment announced by the government at its summit this week seems to have been arranged before the Labour Party took power.

At the summit on Monday, ministers highlighted £63 billion of investment while hosting many business leaders to show off the UK’s supportive policies for growth.

Business Secretary Jonathan Reynolds praised the “record-breaking investment total secured at today’s summit,” and Chancellor Rachel Reeves said, “After the investments secured during this summit, my optimism for Britain is stronger than ever.”

However, a Guardian analysis indicates that £16.5 billion of that investment was secured before the election in July.

One of the biggest investments announced by the UK government was £10 billion from the asset management firm Blackstone to build a datacentre in Byth, Northumberland. However, Glen Sanderson, the leader of Northumberland County Council, told the Guardian that the council had announced this deal back in April and was surprised the government didn’t give them credit.

The government also shared that CyrusOne, a US datacentre developer, is investing £2.5 billion. Plans for one of their datacentres were submitted to local authorities in 2022. Another US company, CloudHQ, is investing £1.9 billion in a datacentre that seems to have been in the works since 2018.

A source from the Department for Business and Trade said that while some project details were known when the Conservatives were in office, the final investment announcements happened faster under the current government.

Additionally, Turkish company Eren Holdings confirmed a £1 billion investment to redevelop Shotton Mill in Deeside, north Wales. However, local authorities approved these plans back in 2022.

US nuclear engineering company Holtec is set to invest £325 million in a new factory in South Yorkshire, which will create hundreds of jobs. This investment appears to have been planned before the Labour government took over. The BBC reported in May that Holtec had chosen four possible sites in England for the factory and would decide by autumn.

A new battery storage project in Hampshire, listed as a deal made at the summit, was already announced by BW Group in April last year.

The WestTech Corridor project at Imperial College London, a hub for science and technology, was also included in the investment list but was first announced in March, months before Labour took power.

A government spokesperson said, “Every deal announced at our record-breaking international investment summit is a new promise from companies to invest in the UK because of what this government has done.

Many of the company leaders said our approach helped them decide to invest £63 billion and create nearly 38,000 jobs, which will boost the economy across the UK.”

Industry Minister Sarah Jones told the Commons after the summit, “£63 billion is a big deal.”

She addressed former Tory business minister Kevin Hollinrake, saying, “Let’s remember that our summit on Monday was put together in just a few weeks, and we got twice the amount of investment compared to their summit last year.”

The department also mentioned a new £130 million project by the healthcare company Haleon. However, in May, Haleon announced it would close one of its UK factories, resulting in 435 job losses, and move production to Slovakia.

Monday’s summit took place at the historic Guildhall in London and was attended by hundreds of leaders from global companies, including Goldman Sachs, BlackRock, and HSBC.

Executives enjoyed a special reception with King Charles, a meal prepared by top chef Clare Smyth, and a live performance by Elton John.

Published: 21st October 2024

Also Read:

The Boohoo boss will resign as the company starts a review of its brand, which might lead to a split
Reeves will not change the capital gains tax on property, according to reports
Have it large: Why ultra-baggy jeans are trending in 2024