Tories target better inward investment

Two statements in a week by leading Conservatives have attacked current inward investment attraction in the UK. Firstly, London mayoral candidate Boris Johnson criticised Ken Livingstone for spending too much on overseas offices. Johnson said: “From day one I will review every office under a value-for-money programme. For too long this Mayor has concentrated on his ego and foreign policy and less on the concerns of Londoners and these offices are an example of this.”

In reply, the Mayor defended the offices, which cost a total of more than £1 million a year. He said that each job created in London generates an average of £40,000, so the Shanghai office, for example, which costs about £130,000 a year to run, would pay for itself if it generated three jobs a year.

Meanwhile, Conservative leader David Cameron used a keynote speech at a breakfast for senior city figures hosted by The City of London to call for a new approach to attracting investment. He said:

“For too long the Government has been afraid of helping businesses. I heard a story the other day. A global IT firm were thinking of where to locate a new European office - Britain or Ireland. They contacted the relevant authorities. The British sent them a brochure in the post with a picture of the Tower of London on the front. The Irish sent a delegation, with drawings on where the new office might go and a presentation explaining local conditions. The firm's new office is of course now in Ireland. That's the sort of world class service that British business needs the British government to provide.”

Anyone who works in inward investment knows that the work is much more complex than this simple anecdote would have us believe – but there is no denying that for decades, the Irish have left the UK trailing in the way in which they engage with potential investors. Yes, their tax regime makes things easier to promote – but the professional customer service and attention to detail is something that all agencies can learn from. Unfortunately for the UK, many already have. It’s not just the Irish who seem to do things better in this respect, add the French, Dutch, Danes, Swedes, Singaporeans et al to a long and growing list of highly skilled investment promotion agencies. Each of these has a very straightforward approach – compelling business propositions delivered by impressive, professional advisors.

Cameron went on to say that:

“We have a department for business that is not taken seriously and billions of pounds worth of business support services that are universally derided for their complexity and lack of impact. I believe there is scope both to make savings in terms of the complex web of support systems and organisations that have been established … and to provide a better service to Britain's small and growing businesses. But we also need to think about the service that Government provides to all businesses, particularly those for whom locating in Britain is a choice not a necessity.”

The Conservatives are currently developing proposals for improving UK Trade and Investment. The last thing we need is yet another restructuring, new strategy or new review – but what gets overlooked in all the in-depth analyses is the basic requirement to do the simple things in a more effective way. By simply speaking directly to potential investors and identifying clear options and business solutions, we will cut through the labyrinth of systems and processes involving multiple agencies that ultimately rely on ineffective marketing materials and formulaic proposals. It’s all about the culture of the teams involved. Perhaps it's time to put a bit more distance between UKTI and Whitehall - both culturally and geographically?