FDI Center’s senior consultant, Conor Finnegan was invited to share his perspective for Investment Monitor’s analysis of FDI flows into the UK. Amid a global decline in FDI, the UK has experienced a 12% drop in FDI project numbers between 2024 and 2025, reaching a record low of 1,375 projects, according to a recent Department for Business and Trade report. On the other hand venture capital investment in the UK’s technology sector surged dramatically to £4.35 billion ($5.8bn), highlighting continued confidence in digital innovation.
In his comments, Conor emphasized the complex set of challenges influencing investor sentiment, including ongoing uncertainties in planning and regulatory frameworks, persistently high energy costs, and the lingering effects of post-Brexit trade realignments. He also underlined the need for clear government policy and a long-term strategy, which he suggested many hope the UK government’s new Modern Industrial Strategy will be able to provide.
Highlighting the UK’s leading position in European tech investment, Conor drew attention to infrastructural limitations, particularly concerning energy capacity, which threaten to constrain further growth in both digital sectors and critical housing development. These structural challenges underscore the importance of strategic government interventions to safeguard the UK’s competitiveness and economic resilience.
The full article is available to read on Investment Monitor’s website here.
