Britain is losing billions of pounds of investment and missing out on highly skilled jobs as world-leading companies are driven away by Rachel Reeves’s “reckless” tax raids, it is claimed. Nearly £7billion of investment has been cancelled or paused with Sir Keir Starmer in No 10 and Rachel Reeves in the Treasury, according to an analysis by the Conservatives.
It points to a slump in foreign direct investment projects, saying the number has fallen by 12% between 2023-24 and 2024-25, and estimates the UK has missed out on 3,900 jobs. The party is alarmed at planned listings on the London Stock Exchange being cancelled, postponed or moved abroad. The Tories claim the value of the combined listings tops £140billion.
Julian Jessop, an economics fellow at the Institute of Economic Affairs, said: “Almost every part of the economy is suffering from heightened policy uncertainty. It is therefore no surprise that inward investment is faltering too.”
In September, Brian Gilvary, executive chairman of Ineos Energy, said the company had “stopped investing in Britain”, warning that the “UK has become one of the most unstable fiscal regimes in the world from a perspective of natural resources and energy”.
In the same month, drug giant Merck scrapped plans for a £1billion expansion and AstraZeneca paused plans to invest £200million at a Cambridge research facility.
Shadow Chancellor Sir Mel Stride said: “Labour’s chaos has cost Britain billions in lost investment and nearly 4,000 high-skilled jobs. Rachel Reeves promised the most pro-business Treasury – instead she’s driven business away with her reckless tax raids.
“Under Labour, Britain is closed for business. Jobs lost and business confidence at a record low, with more taxes on the way at the Budget.
“If Labour had a plan and a backbone, they’d control spending rather than doing more damage with yet more tax rises to fund a welfare splurge.”
A government spokesperson challenged the accuracy of the Conservative analysis, saying: “The UK is forecast to be the second-fastest-growing G7 economy over 2025 and was ranked as the best place in the world to invest after our recent deal with the US.
“As part of the recent US state visit, companies committed to invest a record-breaking £150billion into the UK, and we are prioritising quality over quantity to deliver real change and jobs.”
