UK Foreign Direct Investment (FDI) 2024–2025
Key insights from the Department for Business and Trade (DBT) and EY 2024 data
FDI Project Totals & Economic Impact
- Total FDI Projects (DBT, 2024–2025): 1,375 projects (down from 1,555 in 2023–2024).
- Job Impact:
- New jobs created: 369,355 (3% decrease from previous year).
- Jobs safeguarded: 510,195 (12% decrease).
- Estimated Economic Impact (DBT-supported projects, 2024–2025): £6,041 million.
- EU Comparison (EY, 2024): The UK recorded 985 projects, a 13% decline from 2023, retaining second place in Europe behind France (1,025 projects).
Project Type Breakdown (DBT, 2024–2025)
| Project Type |
Total Projects |
Change from 2023–2024 |
| New Investment |
815 |
−20% |
| Expansions (including retentions) |
373 |
+4% |
| Mergers & Acquisitions (including joint ventures) |
187 |
+7% |
High-Value Activity Trends (EY, 2024)
- R&D projects: +32% increase from 2023.
- Manufacturing projects: +22% increase — highest total since 2016.
- Technology FDI: The UK continues to lead Europe in tech-related investment.
UK 10-Year Infrastructure Strategy (June 2025)
- Total Funding: At least £725 billion over the next decade.
- Scope: Combines economic (transport, energy, digital, water) and social (hospitals, schools, courts) infrastructure.
- Social Infrastructure: Minimum £9 billion per year, rising to £10 billion annually by 2034–35.
- Overseeing Body: National Infrastructure and Service Transformation Authority (NISTA).
- Transparency: Digital Infrastructure Pipeline launching July 2025.
Private Finance and Delivery
- PPPs: Government to explore partnerships where viable (no return to PFI/PF2 models).
- Public Finance Institutions: £9.6 billion funding increase — led by National Wealth Fund, Great British Energy, and British Business Bank.
Clean Energy and Advanced Manufacturing
Clean Energy & Green Industries
- Investment Target: £30 billion+ per year by 2035 in frontier industries (wind, nuclear, hydrogen, etc.).
- GBE Investment: £8.3 billion by 2029 + £700 million for manufacturing facilities.
- Clean Energy Supply Chain Fund: £1 billion to boost UK manufacturing.
- Incentives:
- Clean Industry Bonus (CIB): CfD expansion for sustainable offshore wind supply chains.
- Network Charging Compensation (NCC): Reductions up to 90% from 2026 for energy-intensive industries.
Advanced Manufacturing
- Strategic Funding (2025–2030): £4.5 billion for key sectors:
- Automotive: £2 billion for zero-emission vehicles and batteries.
- Aerospace: £975 million for green aircraft technologies.
- Green Industries: £960 million for CCUS, hydrogen, and offshore wind.
- Life Sciences: £520 million for R&D and resilience.
Spending Review 2025: Capital Investment
- Total Capital DEL: Rising from £131.3 billion (2025/26) to £151.9 billion (2029/30), +1.8% per year (real terms).
- Priority Sectors: Defence, transport, energy, and innovation.
Key Technology & R&D Commitments
- Total R&D Funding: £22.6 billion annually by 2029/30.
- AI Opportunities Action Plan: £2 billion allocation including:
- £500 million for UK Sovereign AI Unit.
- £750 million for Edinburgh supercomputer.
- ARIA: At least £1 billion funding.
- Defence R&D: Over £2 billion (2026/27), rising annually — defence spending to reach 2.6% of GDP by 2027.
- Digital Infrastructure: £1.9 billion for Building Digital UK (BDUK).
- NHS Technology: Up to £10 billion for digital transformation.
Source: Department for Business and Trade (DBT), EY, UK Government Reports (2024–2025)