UK Government urged to increase investment to boost economic growth

UK Government urged to increase investment to boost economic growth #

Concerns about the UK economy have been increasing in recent weeks, as the banking sector is threatened by the collapse of major financial institutions, resulting in reduced business confidence across various industries. The current low levels of confidence have impacted stock markets, causing instability, and making investors anxious. The number of Initial Public Offerings (IPOs) has been down globally by 70% in the past year, with only $20bn of deals being completed. Even US and Hong Kong, known for their ebullient activity, have seen very few IPOs in comparison to last year.

In the UK, the government is being encouraged to attract more investment into start-up operations, fintech, semiconductor supply, car battery production, and other business opportunities. Despite the UK’s status as the third most important country for investment, tied with Germany, there is concern that insufficient attention has been paid to attracting investment into the country. Although the recent budget addressed some tax concessions for SMEs, it was not seen as sufficient encouragement for businesses.

Many believe that to create growth, the UK government needs to invest more and take bold steps to attract investment. While inflation may have peaked, it is still a concern for the UK economy, along with the possibility of higher interest rates, the withdrawal of state support for energy costs, and the increasing levels of debt.

The UK government must focus on building confidence in UK assets and ensure that London retains its status as a financial center. Recently, the UK joined the dynamic Trans-Pacific Partnership, which is expected to offer new advantages to businesses and restore confidence in UK assets.

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