Scottish inward investment in decline – official data

The number of inward investment projects in Scotland has fallen, according to the latest figures from the UK Department for International Trade.

The data emerged as the International Trade Secretary, Dr Liam Fox, the head of the new government department, visited Scotland to hold meetings with Cabinet Secretary for Economy, Jobs and Fair Work, Keith Brown, and Scotland Office Minister, Lord Dunlop.

In their first meeting since the creation of the Department for International Trade, the ministers discussed the importance of cross-governmental working as the UK looks to seize future opportunities in trade and investment.

The discussions took place against the backdrop of declining inward investment projects such as new factories and branch offices, expansion of existing plants, and firms being taken over.

New examples of these types of projects in Scotland numbered 108 in the last financial year, the data showed, compared with the 122 and 119 registered in the two previous years.

That performance also lagged behind the UK as a whole where the number of projects hit more than 2,200, marking an annual rise of 11 per cent.

It was the same story in terms of jobs, with the number created north of the border as a result of inward investment coming in at 4,200, well below a proportionate share of the British jobs.

The new UK Department for International Trade report revealed that nearly 83,000 jobs were created in the rest of the UK, which, though down slightly, was still the second highest since the data began.

The sectors most affected were in finance, professional services, and manufacturing.

Although London dominates, with 889 projects attracted last year, Scotland is rated as being attractive to foreign investors.

Commenting on the new data Dr Liam Fox, who also met with the David Frost, chief executive of the Scotch Whisky Association during his visit, said they show “the UK continues to be the place to do business”.

He added: “We’ve broadened our reach with emerging markets across the world to cement our position as the number one destination in Europe for investment.

“This continued vote of confidence in the UK will help attract foreign investment to create jobs, security and opportunities for people across the UK.”