After years of uncertainty about the vision and direction of the UK, investors should once again view Britain as serious about leading the race to a greener economy and being the go-to destination for inward investment, says John Caudwell
Britain pioneered industrialisation. The entrepreneurialism of British engineers and innovators sparked the first industrial revolution, a technological paradigm shift which soon reached every corner of the globe. In doing so, the UK wrote a remarkable and indelible chapter in the story of human progress.
The industrial revolution has led to longer, healthier and more prosperous lives for everyone, even accounting for the pollution it has caused. So, you could say, science, technology and innovation are in Britain’s DNA.
The UK still has a strong science base and excellent universities. Britain scores highly in rankings such as the Global Innovation Index and the Future Possibilities Index. That should put the UK in a strong position to take advantage of the green energy transition, which has been called ‘the economic opportunity of the 21st century’.
But Britain has been slow to act. Mixed messaging and government U-turns have made it tough for investors to know where Britain stands and what its priorities are. Other countries are charging ahead in the race for green investment, infrastructure, talent and skills while the UK is getting left behind.
The new government’s much-heralded International Investment Summit, which I attended in London on Monday, offered an opportunity to address this.
Ending the uncertainty
After years of uncertainty about the vision and direction of the UK, investors should once again view Britain as serious about leading the race to a greener economy and being the go-to destination for inward investment.
A promise to review regulation that prevents economic growth is another encouraging sign coming from a new government which hopes to show investors that the UK is a leading place for international investment.
One of the first things this new government did on taking office in July was to remove the de facto ban on onshore wind. Earlier this month, it unveiled a £22bn public investment in carbon capture and storage.
And just this past Friday, the Prime Minister announced more than £24bn more of private investment – committed by Iberdrola, Orsted, Macquarie and other multinationals – in pioneering renewable energy projects.
Ultimately, however, we need to secure even more funding to support our excellent entrepreneurs and innovators, and to let them do what they do best.
Moving forwards, I will continue to lead calls to grow the UK’s GDP by encouraging investment from around the world to flow into green businesses, start-ups and initiatives. That is not only how Britain will generate real, long-term economic growth, it’s also the best way to tackle climate change.
The question of how best to attract inward investment is one I have long been focused on. I commissioned the Caudwell Strong Britain study at the Westminster-based think tank the Council on Geostrategy to tackle this very question.
How can the UK build a greener, more competitive, and resilient science and technology base and unlock Britain’s potential for improved prosperity and security?
The findings of the Caudwell Strong Britain research so far show that the UK’s high-tech companies are not properly supported in scaling up, and many companies end up liquidating or leaving the UK. Until Britain develops its attractiveness to global investors in this area, it will continue to waste massive talent and potential.
In its first 100 days in government, Labour has got off to a rocky start, with far too many distractions about freebies and personnel. They’re finding out that governing is far harder than opposing.
But transition time is over. Now is the point for total focus and credibility because the task before Britain is huge.
The government should continue demonstrating to the world that the UK truly is open for business and ready to become a science and technology superpower.
John Caudwell is an entrepreneur and founder of Phones 4 U