Foreign direct investment (FDI) into the North has dramatically increased by 72% in the last five years despite dropping across the rest of the UK, new research reveals.
A new analysis by the Northern Powerhouse Partnership (NPP) found that FDI into the North rose from $25.4bn between 2012-16 to $43.7bn between 2017-21.
By contrast, FDI into Greater London dropped 23% over the same time period, from $43.4bn to $33.4bn.
The North also increased its share of overall FDI into England, from 19% in 2012-16 to 33% in 2017-21, according to the NPP.
The data also found that the number of jobs created in the North from inward investment rose from roughly 52,600 in 2012-16 to 62,100 in 2017-21 – an 18% uplift.
The rest of England saw a rise of just 1% over the same time period, while Scotland, Wales and Northern Ireland all saw drops of -19%, -41% and -37% respectively.
Lord Jim O’Neill, vice-chair of the Northern Powerhouse Partnership, said: ‘The mission to put the Northern Powerhouse on the world map has been a resounding success and a huge amount of credit should go to the genuine cross-party effort between central Government and northern civic leaders to make this happen.’
Jonathan Reynolds, shadow business secretary, said: ‘There are fantastic industries and opportunities across the North of England but the Government are failing to make the most of the successful innovation that is happening here.
‘This report is great news, but we must build on this success with long term consistent plans that businesses can invest alongside. Labour’s Industrial Strategy will support investment, innovation and offer the certainty northern business needs to prosper.’
