London Business Bridges – US-FOREX.US
London is still getting a strong and steady flow of foreign investment, but Michael Charlton, the Chief executive of Think London, an organization made up of businesses and public officials to promote economic activity in London says there is danger the U.K. government is not making the English capitol appear to be open to foreign investment. Think London’s policy presciptions could meet opposition of a skeptical electorate.”We have seen the introduction of policy initiatives that we would have preferred not to have seen,” said Charlton. He cited an introduction of a 50% tax for high earners in the last budget and a recently-introduced points-based immigration system for potential foreign workers as examples of policies that are not sending “the right message” to companies abroad.”They send messages which don’t necessarily reflect the openness with which the U.K. has attracted the foreign investment, whereas other countries and jurisdictions are improving we have to be very careful with anything we do so that it doesn’t tarnish our reputation,” he said.Various opinion polls in Britain have shown Britons would like to see a cap on immigrants entering the country. Seven out of ten said the best way to curb population growth was to cut immigration, according to a recent poll.Figures from Think London released on Wednesday say that 178 foreign companies established or expanded their business in London in 2008, a figure very close to the level in the previous financial year. Direct investment coming from 26 countries created or protected 6,190 jobs in London, compared with 6,152 jobs last year, according to the report.
Charlton believes that 2008′s investments are the result of earlier more business friendly policies.
“Foreign investment decisions are made over a long period of time. We were benefiting from decisions that were taken before” the height of the crisis last year. He said, however, the future is looking “very buoyant” as “the majority of the companies we are dealing with are not incumbent by debt with respect to the investment they are making and have more freedom to react to this window of opportunities.”