The Global Britain Investment Fund will encourage overseas investors and international businesses to invest in the UK in the wake of Brexit, it has been announced.
The scheme – revealed during the Autumn Budget 2021 – is possible now that the UK has left the European Union.
Here’s what you need to know.
What is the Global Britain Investment Fund?
The new £1.4 billion scheme will provide grants to encourage “internationally mobile companies” to invest in the UK, and in particular, innovative sectors such as the life sciences and automotive industry.
The fund includes £354 million to support investment in life sciences manufacturing to “increase resilience against future pandemics”, as well as more than £800 million to support investment in the production and supply chain of electric vehicles.
What are the benefits to UK businesses?
The Government said the fund will ensure that small and medium-sized enterprises (SMEs) can access the finance and investment they need, support the UK’s leading manufacturing sectors, and stimulate regional growth across the UK.
This will be achieved by offering overseas firms and investors grants to fulfil expansion and investment plans in the UK and attract leading talent from around the world to work in UK firms.
Fund only possible after Brexit
The Government said the Global Britain Investment Fund is only possible now that we have left the single market and are no longer tied to the EU’s state aid rules.
“We want to make the UK the best place in the world to start, grow and invest in a business, as we continue to support enterprise, create jobs, and level up as we recover from the pandemic and look to the future,” said the Chancellor Rishi Sunak.
“As we forge the UK’s future as a global scientific and technology superpower, we will ensure the UK continues to be the destination of choice for international talent.”
Other notable measures
As part of plans to position Britain as a global hub, the Government is set to consult on introducing a new international re-domiciliation regime to make it easier for companies to relocate to the UK.
Business bodies welcomed the scheme, saying it would boost investment across Britain.
“This scheme hits the spot when it comes to some of our most innovative industries in the UK,” said Rain Newton-Smith, chief economist at the Confederation of British Industry (CBI).
“The UK has always been an attractive location for top talent. With labour shortages biting in sectors from the lower-skilled to the high, this new network could prove a useful tool in some of our most exciting, higher-skilled industries alongside much-needed funds to spur global investment into the UK.”