Britain has jumped to the top of the list of top places to invest in the wake of the trade deal with U.S. President Donald Trump, according to a survey of business leaders.
After appearing to have squandered the unique opportunity provided by Brexit and the first election of President Trump, the ‘better late than never’ trade deal struck between Britain and the United States seems set to give a boost to the the faltering UK economy in terms of investment.
A survey of business leaders by UK-based multinational Deloitte found that the UK has shot to the top of their list of prime places for their investments, jumping from sixth place last year, The Telegraph reports.
The poll found that the UK had a net positive investment rating of 13 per cent among finance chiefs surveyed, which was only matched by India.
Although the poll only covered firms based in Britain, it noted that the majority had international operations as well.
Chief economist at Deloitte UK, Ian Stewart, told the broadsheet that the boost in confidence in British investing likely came “in the light of the UK-US trade deal announced in early May”.
Richard Houston, chief executive of Deloitte UK, added: “This renewed confidence, coupled with a rise in risk appetite, is welcome and underscores the considerable investment potential the UK offers.”
The survey will likely be welcome news to the left-wing Labour Party government of Prime Minister Sir Keir Starmer, which has been mired in economic stagnation that has plagued the country since the lockdowns during the Chinese coronavirus.
The economic struggles may be further exacerbated later this year, as Chancellor Rachel Reeves has hinted that more tax hikes may be on the horizon, following the government’s failure to make meaningful cuts to welfare amid a revolt from the left-wing party’s backbenches last week.
The high tax regime, which is already at its highest level since the Second World War, has had serious economic ramifications, with the UK on pace to lose more millionaires in 2025 than any other country.
According to estimates from the Henley Private Wealth Migration Report last month, Britain is expected to see a record 16,500 millionaires leave the country, surpassing Communist China for the first time since the firm began tracking such statistics a decade ago.
Henley & Partners CEO Juerg Steffen remarked that the exodus of millionaires from Britain demonstrated a “deepening perception among the wealthy that greater opportunity, freedom, and stability lie elsewhere.”
The apparent boost from the Trump trade deal — one of the few bright spots on the economic front for the Labour government — comes despite Prime Minister Starmer and cabinet having campaigned against Brexit, without which the trade deal would have never occurred.
A post-Brexit trade deal with the United States was a key selling point of the independence movement. However, the largely anti-Brexit Tory governments which followed the 2016 referendum failed to seize upon the opportunity of having a pro-Brexit president in the White House during Trump’s first term.
Although hopes of a trade deal diminished during the anti-Brexit presidency of Joe Biden, they were rekindled with Trump’s re-election last year, and Britain became the first nation to sign a trade deal with the administration in May.
Meanwhile, the European Union is facing a deadline from President Trump this week, after which a 20 per cent tariff could be imposed on EU goods, potentially giving UK exporters — most of whom only face a 10 per cent levy from Washington — a clear Brexit dividend advantage over their European counterparts.
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