Ministers have hailed £63bn worth of investment into the UK that was unveiled at the government’s investment summit in the City today.
The figure, which includes a number of investment projects announced in recent weeks, covers a range of industries and sectors from clean energy, life sciences, data centres and aviation.
Prime Minister Sir Keir Starmer began the high-powered summit with a speech to CEOs and investors in which he deployed the word ‘growth’ a total of 24 times.
“I am determined to do everything in my power to galvanise growth,” he vowed, as he reiterated his ambition for the UK to secure the highest sustained growth among G7 nations.
Closing the summit last night Chancellor Rachel Reeves said: “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.”
Reeves welcomed the investment news, insisting her “ambition for Britain burns brighter than ever”, while the government said the deals will see some 38,000 new jobs created in the UK.
She also reiterated her commitment to cap corporation tax at 25 per cent for the life of this Parliament, ahead of a glitzy evening event featuring King Charles and a performance by Sir Elton John.
It all came as other potential tax changes at the upcoming Budget hung over the investment summit, with ministers continuing to face questions on capital gains tax and employer National Insurance rate.
When asked by City AM about the reports that the government could hike employer NI, business secretary Jonathan Reynolds said: “I think our commitments on corporation tax and the business taxation roadmap were absolutely clear.”
“You’ve got to wait 16 days now… people need to stop speculating and just wait a small period of time.”
When Reeves was asked about employer NI later in the day, she said: “We were really clear in our manifesto that we weren’t going to increase the key taxes paid by working people: income tax, national insurance and VAT.
“And on the business side… that we would cap corporation tax at its current rate of 25 per cent – the lowest in the G7 – and we will stick to the commitments we made in our manifesto.”
Starmer told BloombergTV today that reports capital gains tax could reach 39 per cent were “wide of the mark”, but many entrepreneurs continue to worry about reforms to the levy.
The head of Helm, a group of over 400 founders and business owners, has urged the government not to undermine entrepreneurs.
Writing in City AM, Andreas Adamides said: “Rather than pushing entrepreneurs away, the UK should be working to retain and attract them. Our European neighbours are bending over backwards to attract Britain’s top entrepreneurial talent.
“Many are already relocating to business-friendly environments such as Portugal and Ireland, which offer favourable tax rates and a supportive ecosystem.
“Once they leave, the jobs and innovation they create won’t return.”
Laura Trott, shadow chief secretary to the Treasury said: “The Chancellor has chosen Labour’s first investment summit to sow further uncertainty and chaos for businesses who are now braced for Labour’s jobs tax.
“Regardless of what they say, it’s obvious to all that hiking employer NI is a clear breach of Labour’s manifesto.
“Rachel Reeves herself previously called it anti-business and we agree, it is a tax on work that will deter investment, employment and growth, and the OBR says it will lower wages.”