Revamping UK’s Investment Strategy: New Super-Agency Unveiled Ahead of International Investment Summit

Sky News has learned that an expanded Office for Investment will be launched close to the date of the government's premier investment summit on October 14, as part of a broader initiative to enhance foreign investment.

City editor @MarkKleinmanSky

Saturday, October 5, 2024, 10:

Government officials are planning a major overhaul of the UK’s strategy to encourage foreign investment, just days ahead of a conference where they will assert that the nation is "open for business".

Sources have informed Sky News that authorities are considering a proposal to integrate the Office for Investment, a collaborative initiative between the Department for Business and Trade and Number 10, with additional Whitehall divisions to create a stronger, unified governmental investment body.

It is anticipated that the proposals will culminate in a declaration approximately during the International Investment Summit scheduled to occur in London next Monday week.

There was ambiguity about the establishment of a new entity centered around the Office for Investment, with one official noting that the proposed structure appeared similar to an organization potentially named "InvestUK".

The newly strengthened agency aims to address enduring critiques of the UK's approaches to attracting foreign investment. Its launch is scheduled just two weeks before Rachel Reeves is set to present her inaugural budget as Chancellor.

The choices she makes regarding business and individual taxes on October 30 will be scrutinized to determine if they match the government's assertions of supporting business and investment, which will be highlighted at the investment summit in just over a week.

This weekend, Sky News has uncovered that three major UK banks—Barclays, HSBC, and Lloyds Banking Group—will each contribute £175,000 as main sponsors for an upcoming event. This event is expected to attract over 150 top business executives and financial experts globally.

According to sources familiar with the event, the other key sponsors include M&G Investments, a FTSE-100 investment management company, Octopus Energy, and TSL Projects, a firm that builds data centers.

None of the banks, M&G, or Octopus Energy offered any comments, and TSL Projects did not reply to a request for comment.

The Business Secretary, Jonathan Reynolds, alongside Prime Minister Sir Keir Starmer and Chancellor, is aiming for the summit on October 14 to signal an influx of tens of billions of pounds in investments into the UK economy.

Recently, officials from Whitehall have been contacting leaders in the private sector to encourage them to prepare investment announcements that can be revealed during the upcoming summit.

It was mentioned that the main sponsors of the event might be some of those expected to make announcements during the event.

A representative from the government stated, "The entire administration is committed to promoting economic development and investment nationwide."

"This is why the International Investment Summit will demonstrate that the UK is ready for business opportunities."

"We are poised to roll out an impressive agenda featuring key investors and industry leaders from around the world, showcasing top-tier global business excellence."

On Friday, it was revealed that the government has allocated over £21 billion to enhance the UK's carbon capture and storage sector. However, significant uncertainties linger regarding the future of the Chinese-owned steel plant in Scunthorpe, as well as the Harland & Wolff shipyards across Northern Ireland, England, and Scotland.

Stay informed on the most recent developments both in the UK and internationally by tuning into Sky News.

Last month, Sky News reported that Larry Fink, the chairman and CEO of BlackRock, which is the largest asset manager globally, would be participating in the summit.

This upcoming weekend, an official mentioned that the gathering is set to include notable figures such as Ruth Porat, the president and chief investment officer at Alphabet, Google's parent company; Frederic Arnault, who heads the watch division of LVMH; Thomas Buberl, the chief executive of the French insurance firm AXA; Bruce Flatt, the CEO of Brookfield, a major investment firm from Canada; Abigail Johnson, the CEO of Fidelity Investments; Mike Fries, head of Liberty Global; Rob Stringer, the leader of Sony Music; Stefano Domenicali, the chief executive of the company that oversees Formula One racing; and Nataran Chandrasekaran, CEO of the conglomerate Tata Group.

Executives from UK firms including BAE Systems, Balfour Beatty, Centrica, GlaxoSmithKline, Legal & General, Vodafone, and WPP Group are scheduled to participate.

Sky News reports that several notable figures have confirmed their attendance including Margherita della Valle, the CEO of Vodafone, Hemant Taneja, the chief executive of General Catalyst, a tech investment firm, and John Graham, the head of the Canada Pension Plan Investment Board, which is recognized as one of the globe’s largest pension plans.

Explore further: Reeves plans a trip to China in the new year to strengthen trade relations. BlackRock nears acquisition of contractor for Thames Water.

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In its manifesto for the general election, Labour promised to convene the summit within 100 days of assuming office, a goal it is set to slightly miss.

The initiative committed to bringing together 300 business leaders and investors globally, anticipating that this figure would be reached only after including participants from the UK public sector.

A notable omission might be the appointment of a new investment minister responsible for advancing the UK's inward investment strategy. However, an insider indicated on Saturday that there was still a possibility that this appointment could be made before the summit.

Mr. Reynolds informed the Financial Times that the government will reveal aspects of its industrial strategy prior to the investment summit, including the naming of a chairperson for the Industrial Strategy Council.

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