Invest_in_the_UK_-_your_springboard_for_global_growth

Invest in the UK: your springboard for global growth1Invest in the UK:your springboard forglobal growth

Invest in the UK: your springboard for global growthInvest in the UK: your springboard for global growth1The UK is the number-one destinationfor foreign direct investment in Europe –second in the world only to the USA.A recent survey of internationalbusiness leaders found investorconfidence in the UK is the strongestin Europe, 1 while the World Bankhas said it is easier to do businesshere than any other major economyin the continent. Put simply, if youare an overseas business wantingto drive up your profitability andincrease your competitiveness,Britain is the place to be. And for methere are several big reasons why.First, we are committed to making thisthe most open, welcoming, businessfriendlycountry in the world. We’vealready cut our corporation tax to 21per cent – the lowest of the six biggestEU economies. Next year we will cutit to 20 per cent, making it the lowestrate in the G7 and the G20. For thosedeveloping intellectual property here,we are lowering corporation tax further;to those investing in research anddevelopment, we are giving tax relief.What’s more, we are the sixth biggestexporter in the world, we have maderecord investment in infrastructure,and our world-class supply chainsare helping small businesses exporttheir products to big internationalcompanies – all of which says toForewordDavid Cameron, Prime MinisterFind out more about what makes the UK the first choice for investment.investors around the world: ‘if youwant to expand your businessesinternationally, this is the place to do it’.Second, we have an increasingly strongeconomy – one which the InternationalMonetary Fund says is set to be thefastest growing in the G7 2 and, by2030, the largest in Europe. We areworking to a long-term economic planwhich is backing business, creatingjobs, reducing the deficit, boostinginfrastructure and delivering the skillsfor our young people that businessesneed. So investors can be confident inour continued economic strength andstability – and they can be a part ofthis great global success story too.Third, we have one of the world’sleading financial centres, not justhelping to finance business expansionbut also enabling London to becomeEurope’s premier centre for Islamicfinance and the Western hub foroffshore Renminbi trading.Fourth, we have a large, highlyskilledlabour force: more adults havecompleted higher education thananywhere else in in Western Europe. 3Finally, we have UKTI – the UKGovernment’s award-winning trade andinvestment agency. Last year, UKTI hada hand in more than 80 percent of theinward investment projects landing inthe UK. And their service doesn’t stoponce you are established in the UK; itcontinues as your business expandsinternationally, supporting foreigninvestors with the same range ofservices as any other UK-based company– including support to export aroundthe world. There is more informationabout how you can work with UKTI inthe final section of this brochure.So our message is clear: ifyou want to invest, if youwant to expand, if you wantgreat incentives and aneconomy that’s going fromstrength to strength, thencome to the UK – our dooris firmly open for business.Contact UKTIWe are ready to make your UKinvestment work. You can contactour Investment Services Team todiscuss your plans by telephone+44(0)20 7333 5442 or emailat enquiries@ukti-invest.com.Investment staff at a Britishembassy, high commission or tradeoffice can also put you in touchwith the Investment Services Team.ContentsGateway to the World 2Centre for Global Trading 4Magnet for Talent 6Hub of Innovation 8Talent 10Skills for the 21 st Century 13Labour Market 16Tax 20Finance and Banking 25Property and Planning 28Ease of Doing Business 32Infrastructure 36Transport 36Digital 39Utilities 42Innovation Ecosystem 44Industrial Strategy & Capability 49UK Trade & Investment 52Sources:1. A.T. Kearney 201 4. Foreign Direct Investment Confidence Index: Ready for Takeoff2. International Monetary Fund 2014. World Economic Outlook April 20143. OECD 2013. Education at a glance (data refers to 2011)

4 Invest in the UK: your springboard for global growthInvest in the UK: your springboard for global growth5Centre for Global Trading-8 -5-5 -4+1+3 +4.5 +7Invest in the UK as the number one location for Europeanheadquarters and holding companies.LosAngelesTorontoNew YorkSãoPauloLondonParisDubai Mumbai Hong KongLow tax burdenOur low corporate taxes andcompetitive rules for taxing the profitsof multinationals attract the biggestglobal enterprises to the UK. The UK’s 21percent corporation tax rate is alreadythe lowest of the EU’s big five economies.And it’s coming down further - to 20percent in 2015, by far the lowest in theG7 and the joint lowest in the G20.Transparent, flexible company law andcorporate governanceIt’s fast and simple to set up a company in the UK andthere is flexibility to choose and shape the corporatestructure to suit your needs. The UK provides companiesand their investors with a framework of law and bestpractice giving the certainty needed to support investment,innovation and trade.Time and placeTwo of our natural advantages help you reach outacross the world. Positioned between East andWest, our location and time zone make it easyto work across Asian, European and Americanmarkets. We are also the home of English, theworld’s main business language. 4London - business capital of EuropeOur capital hosts 40 percent of the Europeanheadquarters of the world’s top 250 companies. Itsnearest rival is Paris, with only 8 percent. London’sdominance is even greater for the non-Europeangiants among these 250 companies – three out offive have chosen London as their base. 5The World Bank rates ourtax system as morebusiness-friendly than anyother major world economy,both in terms of rates andadministrative burdens.Stock market strengthListing in London allows you to tap into one of the deepestpools of international equity assets anywhere. As well asbeing the fourth-largest stock exchange in the world, theLondon Stock Exchange is the most international, withalmost 3,100 companies from over 70 countries. 1VSOnly New Yorkcan rival Londonfor the title ofworld’s leadingfinancial centreGlobal financial hubNo other European centre comes close to the size and expertise ofour financial services sector, and only New York can rival Londonfor the title of world’s leading financial centre. Our banks’ assets arethe fourth largest after China, the USA and Japan, and we are thelargest centre for cross-border banking in the world.Lowest corporationtax in the EU and G72014 21%2015 20%Professional strengthWe are world leaders in professional and businessservices such as accountancy, law and audit – servicesthat provide essential expertise to underpin yourinnovation, export and expansion plans. Our shareof exports of professional and business services toOECD countries is second only to the US. 3 We host sixof the top ten international networks of accountancyfirms, four of the ten biggest law firms and the world’slargest advertising company. The creative brilliance ofour advertising agencies can propel your brand aroundthe world – only the USA and Australia won morecreative awards than us in 2013.Dynamic attractionOur business-friendly environment is boosting innovationacross multiple sectors and generating a vibrancy that attractsthe biggest and the best. This dynamism is creating fastergrowth in the financial technology sector than anywhere elsein the world; 2 bringing Hollywood’s biggest movie makers toour shores; and has persuaded Hitachi to move its global railheadquarters from Tokyo to London.4 of the top10 law firms6 of the top 10accountancy firmsWorld’s largestadvertising companyDigital UKWe already have thebest superfastbroadband service ofany major Europeaneconomy, 6 and we willkeep it this way. Ourinvestment to deliverthe best broadbandnetwork in Europemeans you can rely ona digital infrastructurethat will support thehuge increase in usageand the demand forlightning-fast speed,anywhere, anytime.Strong economy,soft powerWe are ranked secondglobally for our ‘soft power’. 7It’s a reputational anddiplomatic influence basedon a rich mix of cultural,creative, business andpolitical strengths. It canbe a potent asset to yourUK business; we use thisinfluence to shape outcomesand make deals that arebeyond other countries –deals that can free yourbusiness to expand globally.Sources:1. world-stock-exchanges.net 2014. List of stock exchanges around the world2. Accenture 2012. The Boom in Global Fintech Investment: A new growth opportunity for London3. OECD Trade in Services data4. Ipsos 2012. English is the Common Link for Employees Who Interact with People from Other Countries (online)5. Deloitte 2014. London Futures: London Crowned Business Capital of Europe6. Ofcom 2014. European Broadband Scorecard7. Monocle 2013. Soft Power Survey 2013Making the EU workfor UK businessWe are a strong voice inthe EU, and will continue touse our influence to makeit more open, competitive,flexible and democraticallyaccountable. We retainsovereignty over ourcurrency, allowing yourUK business to reactflexibly to changing marketconditions.

6 Invest in the UK: your springboard for global growthInvest in the UK: your springboard for global growth7Magnet for TalentInvest in the UK to access global talentand high-level skills.Global talent hubWe are the highest rated powerhouseeconomy in the Global Talent CompetitivenessIndex based on our success at attracting,growing and retaining talent, alongside thequality of our skills base. 1 Ranked 7th in theworld, our population is bigger than thecombined total of the six countries rankedabove us. Investors choose the UK because ofthe breadth of skills across multiple industrysectors in a very large workforce.No.rated major economyfor global talentThe era of ‘talentism’Access to talent is now the driver of economicgrowth. While many parts of the world facelabour shortages, global migration trendsfavour the UK. Locate here and you’ll be inone of the few European countries expectedto experience labour supply growth in thenext 15 years. 2The UK - workplace of choiceSkilled people from overseas want to work in the UK,and our visa system is set up to encourage them. Ofthe one million employed people who moved to an EUMember State (either from within or outside the EU) in2011 and 2012, 415,000 (38 percent) took up residencein the UK – nearly 190,000 more than the second mostpopular destination, Germany. 3 As talent becomes moreinternationally mobile, we continue to attract the bestfrom overseas.Entrepreneurial hubOver half a million businesses started in the UK in 2013, 4helped by a business environment with the fewest barriersto entrepreneurship in the world. 5 UKTI has set upprogrammes such as Sirius (our graduate talent scheme)and the Global Entrepreneur Programme to encouragethe brightest and best international entrepreneurs to startand expand their enterprises in the UK. With our uniquepackage of business support, tax incentives and visaflexibility you can push your products and servicesquickly into global markets.Businesssupport=£taxincentivesvisaflexibilityyour products and servicesmoving quickly into theglobal marketThe multinationals’ choiceMany of the world’s biggest and most dynamiccompanies have analysed the pros and cons oflocating in different countries – and then chosenthe UK. Google, Facebook, Amazon, Coca-Cola,Motorola and Sony are just a few examples ofcompanies that have their European headquartershere. In 2012 the UK was the chosen location for43 percent of new inward investment projects withheadquarters in Europe – three times more thanour nearest competitors.The UK was chosen for43 %of new inward investmentprojects with HQoperations in Europe3xmore than the nearestcompetitorsSources:1. INSEAD, Human Capital Leadership Index & Adecco Group 2013.The Global Talent Competitiveness Index 20132. The Boston Consulting Group/Rainer Strack 2013. The Looming Global Talent Crisis – How to Counteract Workforce Imbalances3. Eurostat 2013. European Union Labour Force Survey – annual results 20124. StartUp Britain 2013. ‘Britain hits record start-up rate in 2013’ (online)5. OECD 2012. OECD Science, Technology & Industry Outlook 20126. Berggren, N. and Nilsson, T. (2013), Does Economic Freedom Foster Tolerance? Kyklos, 66: 177–207Broad skills base, deep labour poolThe USA is the only large economy ranked above usin the Global Talent Competitiveness Index ratingfor the availability of both ‘labour and vocationalskills’ and ‘global knowledge skills’. It is strongevidence for the breadth of our skills base acrossmultiple sectors, concentrated in the second largestlabour force in the EU.Simple, fair personal taxationOur personal tax rates are highly competitive withthose in other European countries, particularlywhen the effects of income tax and employee socialsecurity contributions are combined. Our ‘all-in’wage tax rate is the lowest of the EU’s five majoreconomies.Equality UKYou and your teams will discover the UK is morethan just a great place for business. You join adiverse and welcoming country - the World ValuesSurvey identifies Britons as among the world’s mosttolerant people. 6 We are proud to have some of thestrongest equality legislation in Europe. You can liveand work in the UK reassured by comprehensive lawsthat protect the rights of individuals and promoteequality of opportunity for all.

8Invest in the UK: your springboard for global growthInvest in the UK: your springboard for global growth9for international cities that wantA nation of scientistssmarter ways to improve qualityEight greatOne in five work in science-basedof life, strengthen their economytechnologiesProtect yourBig dataRegenerative roles – that’s 5.8 million people,and protect the environment.intellectual propertyThe UK Government’smedicineprojected to increase to 7.1 millionIt’s our mission to unlock globalIndustrial Strategypeople by 2030.SatellitesWe are secondInternational innovators clearlyurban innovation markets forfocuses on eightonly to the USA among OECDtrust our robust intellectualUK-based businesses by helpingAgri-sciencetechnologies with thecountries for the share of theproperty system. They ownthem create the products andpotential to transform our Robotics andworkforce working in R&D. 4 services that transform city life.lives – and areas in which autonomous AdvancedUK, compared to 17.4 percentwe are set to lead the systemsmaterialsin Germany, 12.6 percent in theNeed support for your UK-based innovation?Hub of InnovationInvest in the UK to bring innovative products and services to global markets.The Technology Strategy Board can help you to:www.innovateuk.org• Bring products and services morequickly to market.• Access research & development (R&D) facilities.Dynamic• Connect with research or business partners.innovation• Win funding to reduce the risk fromagency innovation projects.World leading R&D InnovationNobel brilliance Global researchThe EuropeanDigital capitalTurning ideas into GovernmentindustrypartnershipenvironmentincentivesThe UK has produced influencedestination forof Europenew products andOur partnership withOur generous tax credits nearly 90 Nobel Prize The output of our researchinnovationEast London’s Tech City servicesTwo-thirds of R&Dindustry creates a thrivinginnovation ecosystemfor turning ideas intocommercial success. Weare the top rated majorworld economy in theGlobal Innovation Index,with particular strengthsidentified in the qualityof our universities, ourknowledge-intensivelabour force and theimpact of universitybusinesscollaboration. 1cut the cost of leadingedgeresearch and hightechcommercialisationprocesses. The PatentBox lowers the rate ofcorporation tax you willpay on profits earnedfrom qualifying patentedinventions to ten percent– half the headline tax ratethat will apply from 2015.The tax benefit from R&Dtax credits can amountto six percent of a largecompany’s qualifying R&Dexpenditure, increasing to33 percent for a small ormedium sized company.winners in scientificdisciplines, more than anyother country apart fromthe USA. UK scientistswhose advances havechanged the world includeSir Robert Edwards who(along with surgeonPatrick Steptoe) pioneeredconception through IVF,Francis Crick and JamesWatson who discoveredthe structure of the DNAmolecule, and Peter Higgsin 2013 for his theoreticalwork on the existence ofthe subatomic particle wenow call the ‘Higgs boson’.community is prodigious.With less than one percentof the global population theUK accounts for 6.4 percentof global journal articles,11.6 percent of citations and15.9 percent of the world’smost highly cited articles. 2Choose to innovate inthe UK and you’re ingood company. In 2011we attracted almostUS$7 billion of overseasfinancedR&D. This is thesame as Canada, Finland,Japan, China and Russiacombined, and more thaneither France or Germany(US$4 billion each). 5symbolises the vibrantentrepreneurial spirit inthe UK. It is now Europe’slargest digital cluster anda hotbed of fast-growthstart-ups and disruptivetechnologies. You don’thave to be in East Londonto benefit from this hubof innovation – Tech Cityworks with digital clustersacross the UK.Catapult Centres bringtogether the very bestof the UK’s businesses,scientists and engineersto work side by side onlate-stage research anddevelopment. A widerange of support, facilitiesand opportunities forcollaboration exist at over100 science parks and300 business incubators.Smart citiesexpenditure in the UK iscontributed by industry, 6and half of business R&Dexpenditure is by foreignownedfirms – proof ofthe attraction of ourinnovation environment.By improving accessto finance, offeringgenerous tax incentivesand investing in R&Dinfrastructure we freecompanies to innovatein ways that might bebeyond them otherwise.Our London-based Future CitiesCatapult is developing solutionsworld. The technologiesUSA and 2.4 percent in Japan. 7we are commercialisingSyntheticEnergyat leading-edge R&Dbiologystoragefacilities are:Sources:1. Cornell University, INSEAD & World Intellectual Property Organisation 2013. Global Innovation Index 20132. Elsevier BV 2013. International Comparative Performance of the UK Research Base3. Science Council 2011. Shape of the UK Science Workforce4. OECD 2013. STI Scoreboard5. OECD 2012. OECD Science, Technology & Industry Outlook 20126. Office for National Statistics 2013. Business Enterprise R&D - 20127. OECD 2014; International co-operation in patents: foreign ownership of domestic inventions

10 Invest in the UK: your springboard for global growthInvest in the UK: your springboard for global growth11TalentThe UK ranks first among the powerhouse economies for growing, retaining and attracting talent. 1It’s a vital asset in an era where human capital is the engine of economic growth. Talent, creativityand the ability to innovate are the game-changers.UK talent: the headlinesThe highest proportionof adults with tertiaryeducation in WesternEuropeTop rated for growing,retaining and attractingtalent among thepowerhouse economiesThe only major Europeaneconomy expecting anincrease in labour supplyup to 2030More employed peoplemoved to the UK in 2011and 2012 than any otherEU Member StateHalf of Europe’sgraduates willing torelocate to find workwould choose the UKAccess to talent is more important thanever at a time when many parts of theworld face shortages in labour supply.The Boston Consulting Group estimatesthat Western Europe will need toincrease its workforce over the next 15years by 45 million – equivalent to theworking population of Germany. 2From culture, sport and entertainmentto food, design and technology, theimpact of our talent and entrepreneurialspirit is felt in every corner of the globe.This will continue. We invest heavily inthe strengths that combine to makethe UK such a magnet for talent - areassuch as education, skills, management,research and innovation.The depth of our talent shows throughin the broad range of indicatorsdeveloped by INSEAD. 3 We rate fourthin the world for ‘qualified labour flow’based on our success at attractingand retaining talented people fromacross the world, sharing the top tenlist with Switzerland, the USA and theNetherlands. The UK’s long-standingattraction as a great place to beundoubtedly helps. Talented peopleare drawn by our rich mix of culture,heritage, vibrant cities and variedcountryside. But we also work veryhard to create a learning, business andinnovation environment that attractsand keeps skilled people.2013 Global TalentCompetitiveness IndexTop seven plusselected rankingsPopulation(millions)1 Switzerland 8.12 Singapore 5.43 Denmark 5.64 Sweden 9.75 Luxembourg 0.56 Netherlands 16.87 UK 63.79 USA16 Germany30 France34 Spain35 ItalyThe UK’s populationis greater than thecombined total ofthe six higher ratedcountries – giving youaccess to a biggerpool of talent.4 th 4 of the top 6The UK’s ranking in the worldfor ‘qualified labour flow’ basedon our success at attractingand retaining talented peoplefrom across the worldbest universities in the world“Basing ourselves in the UK is a no-brainer. As muchas anything, it makes sense to be here for the sheerentrepreneurial spirit and sense of adventure.”- Gerry Sutton – CEO of Adstream (advertising services provider and part of the Paul Ramsay Group, Australia)Educational excellenceINSEAD rates the UK first globally for the quality ofits management schools and university learning, thirdfor lifelong learning and seventh for ‘higher skills andcompetencies’.Universities produce the creative and critical thinkingskills that can transform business performance and theUK has some of the very best, including four of thetop six universities in the world - Oxford, Cambridge,University College London and Imperial CollegeLondon. 4 Add this to the fact we have the highestnumber of leading MBA institutions in Europe, and it’s nosurprise that over 425,000 international students camefor higher education study in 2012/13 – more than anycountry apart from the USA. 5This focus on university excellence is a key reason whywe have the highest proportion of adults with tertiaryeducation in Western Europe, 6 creating a concentratedpool of people for professional and knowledge basedjobs. The UK is also a magnet for graduate talent – halfof Europe’s graduates who are willing to relocate insearch of their first professional role would prefer toemigrate to the UK. 7Research and innovation.International companies invest billions of pounds eachyear in the UK’s science and innovation ecosystem. Halfof all UK-based business expenditure on researchand development (R&D) activity is undertaken byforeign-owned companies 8 - the highest proportionof overseas-funded research and development inthe OECD. 9 They are attracted by the expertise andleading-edge technologies available in our academic andresearch facilities – rated as the third best in the worldby the World Economic Forum, higher than any othermajor world economy. 10 Our world-class universitiesare the foundation for this expertise, supported byinvestment in new R&D facilities that focus on turningideas in to commercial success.INSEAD ranks us higher than any other major world economy forinnovation output, a reflection of our success at producing newproducts and services. 11 By improving access to finance, offeringgenerous tax incentives and investing in R&D infrastructure, theUK opens up a whole range of new innovation possibilities for you.The UK’s life science discoveries havetransformed scientific knowledge and continueto unlock clinical and commercial opportunities.All of the world’s top ten pharmaceuticalscompanies have operations in the UK, includingseveral with both R&D and manufacturingcapabilities. The talent pipeline continues – wehave both the highest number of life sciencegraduates in Europe and three of the top fouruniversities for medicine. 12Our universities research solutions to thebiggest problems facing humankind today. TheLondon Centre for Nanotechnology, a jointventure between two of the top universitiesin the world, University College London andImperial College London, is tackling globalproblems in information processing, healthcare,energy and environment through theapplication of nanoscience and nanotechnology.“The London Innovation Centre will bringtogether ‘the best talent.’ It will housescience and technology experts with boardexpertise in developing new solutions andproducts, and will have local deal-makingcapabilities to flexibly adapt deal structuresto match early-stage opportunities.”- Patrick Verheyen, Head of Johnson & Johnson’sInnovation Centre, London

12 Invest in the UK: your springboard for global growthInvest in the UK: your springboard for global growth13Skills for the 21 st CenturyWelcoming overseas talentGlobal migration flows tell you a lot about whichcountries are attractive to internationally mobile talent.More employed people moved to the UK in 2011 and2012 than any other EU Member State. 13 We also hostthe third largest number of highly skilled immigrantsseeking employment in the world (after Ireland andCanada). 14 Our flexible visa system is set up to welcomeskilled workers, international students, academics,entrepreneurs and investors. You can find out moreon page 18.EntrepreneurshipWe are a nation of entrepreneurs. A record 500,000businesses started up in the UK in 2013, 15 helped bya business environment with the fewest barriersto entrepreneurship in the world. 16 We want thebrightest and best international entrepreneurs tostart and expand their business ventures in theUK, and programmes such as Sirius and the GlobalEntrepreneur Scheme are making this happen.Find out more on page 55.85 %of senior managers surveyedfrom UK-based internationalcompanies said the UK’sentrepreneurial culture madeit an attractive location fornew activities 17Sources:1. INSEAD, Human Capital Leadership Index & Adecco Group 2013. The Global TalentCompetitiveness Index 20132. The Boston Consulting Group/World Economic Forum 2011. Global Talent Risk – Seven Responses3. INSEAD, Human Capital Leadership Index & Adecco Group 2013. The Global TalentCompetitiveness Index 20134. QS Quacquarelli Symonds Limited 2014. QS World University Rankings 20135. UK Council for International Student Affairs 2014. International Student Statistics: HigherEducation 2012/136. OECD 2013. Education at a glance (data refers to 2011)7. trendence 2013. Graduate Barometer 20138. ONS 2013. Statistical Bulletin: Business Enterprise Research and Development, 20129. OECD 2012. Main Science and Technology Indicators 201010. World Economic Forum 2013, Global Competitiveness Report 2013-14 (data from ExecutiveOpinion Survey)11. INSEAD and World Intellectual Property Organization. The Global Innovation Index 201212. Times Higher Education 2013. The World University Rankings: Top 100 Universities for Clinical,Pre-clinical and Health 2013-1413. Eurostat 2013. European Union Labour Force Survey – annual results 201214. Gill and Raiser 2012. Golden growth: restoring the lustre of the European mode. Washington, DC:The World Bank15. StartUp Britain 2013. ‘Britain hits record start-up rate in 2013’ (online)16. OECD 2012. OECD Science, Technology & Industry Outlook 201217. Ernst & Young 2014. UK Attractiveness Survey 201418. British Fashion Council 2012. London Fashion Week Facts & Figures SS13 (online).19. TIGA 2014. UK Video Games Industry (online)20. The Gunn Report 2013UK talent on the world stageThe UK television and film industry is a majorinternational success story. Our television programmesare watched around the world. The 50 th anniversaryDoctor Who special was broadcast in 94 countriesacross six continents – the largest-ever simultaneousbroadcast of a television drama. Downton Abbey hasbeen sold in over 220 territories.The world’s six largest film studios - Disney, Paramount,Sony, Twentieth Century Fox, Universal and Warner Bros.- have a presence in London; and Warner Bros. also hasa state-of-the-art film production facility in Hertfordshireand a leading post-production house in London.British visual effects facilities have been Oscarnominatedsix times in the last seven years and havewon three times for The Golden Compass, Inceptionand Life of Pi. British success continued when the 2014Oscar for visual effects went to the film Gravity and itsUK production team.“The amazing know-how, quality andsophistication of the British filmindustry made this film happen.”- Alfonso Cuaron, Director of GravitySome of the most iconic brands in contemporaryfashion hail from the UK. Designers such as StellaMcCartney, Jimmy Choo and Paul Smith help ensurethat fashion is one of our biggest export successes.UK designers export two-thirds of their output, and it’sestimated that orders of over £100 million are placedduring London Fashion Week each season. 18The UK video games development sector is the largestin Europe, 19 employing 26,000 people directly andindirectly. UK-made games, such as Grand Theft Auto, aresome of the biggest grossing sensations in the world. Weexcel at mobile content too. The most downloaded freeiPhone App in 2013 was Candy Crush Saga. Published byUK company King.com, the game is one of the largestinteractive entertainment franchises of all time.Our advertising sector punches above its weight –the UK is ranked third in the world for the number ofcreative awards won (behind the USA and Australia), butfirst as a percentage of campaigns run. 20A highly skilled workforce is the foundation for a strong, dynamic economy. This is why skillsis one of the five central themes of our industrial strategy, our whole-of-government approachto supporting economic growth. Our skills strategy is based on a strong, long-term partnershipbetween government and business. It focuses on the rigour needed to develop skills that createbusiness innovation and expansion, and the responsiveness to adapt to employers’ needs.UK skills: the headlinesHome to four of thetop six universitiesin the worldThe highest numberof leading MBAinstitutions in EuropeHighest proportionof the workforce inprofessional occupationsof all the world’s majoreconomiesAn employer-ledApprenticeshipProgramme thattailors skills to yourprecise needs“We could outsource toRussia or India, but thequality of programmersin the UK is excellent,and we prefer to haveour contractors nearbyso we can work closelywith them.”-Kate Lewis, Commercial Directorof Frog Trade, owned by Malaysia’sYTL Corporation.We build from a position of strength.Our higher education institutions areworld class; the UK is home to four ofthe top six universities globally, with29 in the top 200 - more than anyother country apart from the USA. 1This quality attracts students from allover the world, an inflow of talent thathelps us produce the highest number ofgraduates in Western Europe. 2 The UKis the second most popular destinationafter the USA for international students,with an estimated 13 percent of theinternational student market share. 3We have 150 universities working withbusiness on research and developmentprojects – expertise you too can benefitfrom. University capability feedsinto our network of prestigious anddynamic research institutions, rankedthird globally for quality in a surveyof businesses. 4 Examples include thenetwork of scientific researchers atOxford Science Vale, the state-of-theartfacilities for advanced engineeringtechnology at Sci-Tech Daresbury inCheshire, and for transport systemstechnology at MIRA Technology Parkin Leicestershire.Case studyBusiness-university collaboration in actionLoughborough University and engineering company Caterpillarwork together to investigate low-emissions technologies forinternal combustion engines. The Caterpillar Innovation andResearch Centre has developed new technologies to improveengine and machine performance, reduce exhaust emissions andimprove fuel efficiency.Liverpool University and Inditherm plc collaborated in thedesign of an award-winning trolley which enables the immediateresuscitation of newborns whilst the umbilical cord is still intact– a product with the potential to save the lives of thousands ofvulnerable babies.A multi-million pound commitment from Siemens supported theUniversity of Lincoln’s new School of Engineering - the firstdedicated facility of its kind to be built in the UK for more than20 years. Steve Middlebrough, Director of Engineering, Siemens(Lincoln), said: ‘Our collaboration with the University is groundbreakingin many ways. It represents a new model of industry/educational collaboration providing clear benefits for bothSiemens and the University. It’s a true partnership.’

14 Invest in the UK: your springboard for global growthInvest in the UK: your springboard for global growth15Percentage of adults with tertiary educationUK42%Ireland38%Switzerland35%Denmark34%Netherlands32%Spain32%France30%Germany28%Italy 15%Percentage of the workforce in professional occupationsDenmark25%UK24%Switzerland23%Netherlands 22.5%Ireland 22%Germany 17%France 16.5%Spain 16%Italy 13%“The UK is now a real centrefor technical intelligence.The high quality ofeducation and a significantinvestment in businesstechnology means thetalent pool is very strong.”- Gerry Sutton – CEO of Adstream(advertising services provider and part ofthe Paul Ramsay Group, Australia)Source: OECD 2013. Education at a glance (data refers to 2011)Source: International Labour Organization 2011. KeyIndicators of the Labour Market, 7th editionThe UK is also home to 14 of the top 100 full-time MBAranking institutions, including London Business School,University of Bath School of Management and Universityof Strathclyde Business School. The rest of Europe onlycontributes 19 institutions to this list. 5The quality of our higher education institutions and theirappeal to international students means you get accessto a large, highly skilled labour force. The UK has thehighest percentage of adults with tertiary education inwestern Europe. 6 We also have the highest proportion ofthe workforce in professional occupations of all the world’smajor economies. 7The Global Talent Competitiveness Index (GTCI) illustratesthe diversity of our skills base. Investors choose the UKbecause of the breadth of skills across multiple industrysectors in a very large workforce. The USA is the onlylarge economy ranked above us in the GTCI rating for theavailability of both ‘labour and vocational skills’ and ‘globalknowledge skills’. We have a high concentration of skilledworkers in a population that is over ten times the size ofDenmark’s, and seven times larger than in Switzerland.With a highly mobile working population of over 30 millionbased within a small geographical area, you can access theskills you need from any location in the UK.Reinventing apprenticeshipsApprenticeships are at the heart of our drive to provideworld-class vocational education. We are expanding andstrengthening apprenticeships at all levels to standardsdesigned by employers, not government. We are alsorouting more funding directly through employers, giving youthe option to buy or develop apprenticeship training tailoredto your needs. You can lead a partnership with an educationprovider and reap the benefits of a training programmedesigned specifically to meet your skills needs.With every apprentice training to an employer-designedstandard by 2017, you can take advantage of the growingtalent pool with the relevant skills and knowledge for yoursector. The pool is growing fast – over 860,000 people werein apprenticeships in 2012/13, eight percent more than theprevious year. In the first quarter of 2014, online applicationsto vacancies were up by 48 percent over the same periodin the previous year, with a big increase in the number ofyoung women applying. 8Case studyEmployer-led funding - NissanNissan needed to recruit 2,000 additional staffto work on the launch of new car models at itsSunderland plant. They developed a skills programmein partnership with regional suppliers, GatesheadCollege and the University of Sunderland. Governmentfunding of £2.7 million supported Nissan’s contributionof more than £4 million over two years. The outcome– training for 3,650 new recruits, existing staff andsupply chain workers in a programme that includedfour Apprenticeship Programmes, over 250 coursesand the award of nearly 2,500 formal qualifications.Ready for new technologiesNew industries and technologies are opening up globalopportunities - but only for countries with the advanced skillsto lead the field. You can invest in the UK confident that weare ready for these opportunities. We are investing in the skillsneeded for growth technologies, joint-funded with employersso that training is directly tied to their needs in strategic,high-value industries.National collegesOur new generation of national colleges are producingspecialists in key technical sectors. Examples include theManufacturing Training Centre in Coventry that developscutting-edge skills in advanced engineering, and a new HighSpeed Rail college to provide the very best training in railengineering, environmental science and construction.Bringing the best talent to the UKOur continuing appeal as a destination for internationalworkers and a proactive migration policy will help youbring skilled staff in to the UK. Our visa system is set up towelcome skilled workers, international students, academics,entrepreneurs and investors. In the year ending March 2014,the number of work visas we issued increased by ten percent,with skilled work visas up 18 percent. 9 You may be surprisedhow fast and straightforward this system can be – find outmore on page 18.Improving skills in science, technology,engineering and maths (STEM)We are taking a range of action to help yourUK-based business access these vital skills.Examples include:A £200 million capitalinvestment in newteaching facilities.A national programmeof business engagementwith schools to encouragechildren to considerengineering careers.Funding of 500 Mastersleveldegree places inaerospace engineering,supported by nine leadingaerospace companies.Sources:1. QS Quacquarelli Symonds Limited 2014. QS World University Rankings 20132. OECD StatExtracts – Education and Training – data from 20113. OECD 2013 – data from 20114. World Economic Forum 2011. Executive Opinion Survey 20115. The Economist 2013. Which MBA?6. OECD 2013. Education at a glance (data refers to 2011)7. International Labour Organization 2011. Key Indicators of the Labour Market, 7th edition8. Skills Funding Agency and Department for Business, Innovation & Skills 2014. Apprenticeship vacancy report data9. ONS 2014. Migration Statistics Quarterly Report, May 2014

16 Invest in the UK: your springboard for global growthInvest in the UK: your springboard for global growth17Labour MarketRigidity of employment index (2013)UK10Italy29Netherlands42The UK’s labour force of 32 million people is the second largest in the EU. The size and strength ofour skills base has attracted some of world’s largest multinational companies to locate in the UKincluding Microsoft, Hitachi, Nissan, Coca-Cola, Motorola, Sony, Ford and Johnson & Johnson.1 100LeastrigidIreland10Germany28Spain31France56MostrigidUK labour: the headlinesNo.2The only majorEuropean economywith a growing labourforce over the next15 yearsRated as the secondmost efficient labourmarket of the world’smajor economiesThe most competitivelabour costs inWestern EuropeApplications for askilled worker visatake 30 minutes,and 98 percent aregrantedThe World ValuesSurvey showsBritons to be amongthe world’s mosttolerant peopleUniquely among Europe’s majoreconomies, the UK’s labour force isexpected to grow over the next 15years. It’s an important considerationfor international investors when labourshortages and skills mismatches areforecast in many parts of the world. TheUSA will need to increase its workforceby 35 million by 2030, and Europewill need to add 45 million. 1 Germany,France, Netherlands, Switzerland, Spainand Italy are all projected to experiencea contraction of labour supply. 2Flexible labour forthe 21 st centuryYou can expand your UK business withthe help of some of the most businessfriendlyemployment laws in Europe. Oursimple, flexible laws protect and promotethe interests of employees, while makingit easy for you to hire and manage theright people with the right skills, as andwhen you need them. Labour mobility iskey in the 21 st century – we are equippingour workforce with skills that help themmove to where their expertise is needed,and freeing employers to hire in the waythat suits them.Labour supply forecast 2A strong economy needs to empowerpeople to reach their full potentialwhatever their age, gender, race, religionor ability. This means flexible workingarrangements for employees too. Theproportion of women in managerialroles in the UK was nearly 35 percentin 2012, slightly higher than the EUaverage and higher than Ireland, Spain,Germany and Italy. 3World Economic ForumGlobal RankingsCompetitiveness Report – labourmarket efficiency rankings (top fiveplus selected countries)1 Singapore2 Switzerland3 Hong Kong4 USA5 UK13 Denmark16 Ireland21 Netherlands41 Germany71 France115 Spain137 ItalyTalent is becoming more internationally mobile. Our migrationpolicy attracts the best from overseas, and then the quality ofour working conditions help persuade them to stay here (seepages 10 to 12 for more information).Studies suggest we have the right balance between flexibilityfor employers and employees. We have the second mostefficient labour market of the world’s major economiesaccording to the World Economic Forum (WEF). 4WEF’s analysis covers a range of factors; we score highlyin our ability to attract and retain talent, and also in areasthat directly affect your freedom to manage people. Forexample, WEF’s data indicates you will:• Get more flexibility to determine wages in theUK than any other country in western Europe,and every country in the G7 apart from Japan.• Experience a more straightforward processfor recruiting and dismissing staff here thanGermany, Netherlands and France.• Face lower redundancy costs in the UK than theNetherlands, Switzerland, France and Germany.Further confirmation about our flexible labour market comesfrom the World Bank. 5 Its Rigidity of Employment Index(2013) measures the restrictions and costs involved in hiring,changing staff working hours and dismissals. Of our mainEuropean competitors, only Ireland can match us for the easeof performing these tasks.The UK also performs consistently well in the OECD’sindicators of employment protection. In the 2013 indicators,the UK had the least strict regulation in the EU, and thefourth lowest level within the OECD. 6The UK is a relatively small country - less than half thesize of France, for example, but with a similar populationsize. This creates a concentration of skilled labour that fewcountries can match. With the highest proportion of graduatesin Western Europe, 7 you have ready access to the sort oftransferrable critical thinking skills that drive innovation andbusiness growth.Labour costsLabour costs in the UK are the most competitive inWestern Europe, 8 helped by low employer social securitycontributions. This makes the overall cost of labour lower thancountries such as France, Ireland, Netherlands and Germany.The UK operates a National Minimum Wage (NMW). We believethis encourages people to work, protects low paid workers andprevents businesses from using low wages to compete unfairly.Our NMW rates are lower than in France, Ireland and theNetherlands. 9 The rates are set to help the maximum numberof low-paid workers while encouraging employers to recruit.Our NMW structure is simple for employers and staff alike.There are only four rates: three age-related rates, and a ratefor apprentices. The rates are the same across the UK for allindustries, occupations, sizes of firm and regions.Hourly labour costs in euros 2013Total hourly labour cost (excluding agriculture and public administration)Industrial hourly labour costsUKSpain20.922.521.123.3“London acts as areal magnet fortop talent andas such is a realasset to the UK.”- Coface(France, financial services)4294225918235432Labour supplyin 2011 (millions)Labour Supply CompoundAnnual Growth 2011-2020Austria -0.01%FranceGermanyItalyNetherlandsPolandSpainSwedenSwitzerlandUK-0.46%-0.34%0.10%0.07%0.25%0.26%0.26%0.42%0.58%Labour Supply CompoundAnnual Growth 2020-2030-1.19%-0.92%-0.72%-0.72%-0.50%-0.41%-0.56%-0.02%0.13%0.13%Flexible labour termsOur flexible labour laws allow you to employ staff in the waythat suits your needs. Contract options vary from full-time,part-time and agency staff to freelancers, consultants andcontractors. Freedom to recruit quickly, and for as long asis needed, helps you to react to changing circumstances.Flexible hiring terms and the ease of becoming self-employedhave produced a thriving freelance and consultant marketin the UK. The freelance market is particularly strong ininformation technology, design and multimedia, sales andmarketing and administrative support.ItalyIrelandGermanyNetherlandsFranceSwedenNot Available28.1282930.731.333.236.534.336.840.145.1

18 Invest in the UK: your springboard for global growthInvest in the UK: your springboard for global growth19A visa system that works for businessWe have set up a visa system that welcomes skilled workers, international students, academics,entrepreneurs and investors.The vast majority of visitors do not require a visato come to the UK – this applied to approximately96 percent of visitors in 2012. A number of mythssurround migration to the UK, but the facts speakfor themselves.UK Visas and Immigration run our visa service,managing around three million applications a yearfrom overseas nationals who wish to come to theUK to visit, study or work. If you need a visa you willfind one from the wide range available to suit yourindividual needs, whether you are an entrepreneur,investor or company employee.We are constantly improving our visa service based oncustomer feedback. Recent enhancements include:38%of the one million employed people whomoved to an EU Member State (either fromwithin or outside the EU) in 2011 and 2012took up residence in the UK – 415,000,nearly 190,000 more than the second mostpopular destination, Germany 10“We feel very welcome in the UK as a foreign investor. It is a veryopen market and a great place to do business.”- Jaspal Singh, Chief Executive of ComfortDelGro UK and Ireland(Singapore-based transport services company)5Years• Allowing skilled worker visas to be grantedfor up to five years rather than three.• Making it easier to apply for a visa online.• Setting up a business helpdesk to providea single point of contact for employers’queries in the UK, and an internationalenquiry service for customers overseas,available in 20 languages.• Expanding and improving the network ofvisa application centres; we now have over200 around the world, with 12 in each ofIndia and China alone.• Expanding our 3-5 day priority visaservices to 100 countries.98%of skilled worker visa requests are granted,and the application takes only 30 minutes96%of applications for visas other than forpermanent residence (‘non-settlementvisas’) are processed within 15 days7 daysaverage processing time for a visit visaDiversity in the UKYour staff will find the UK is more than just a greatplace for business. They will join a diverse, welcomingand tolerant country. In a survey of senior managers ofinternational companies already established here, 93percent said the UK’s quality of life, diversity, culture andlanguage make it an attractive location for new activities. 11At least 300 languages are spoken in London, making itone of the most ethnically diverse cities in the world. 12We have comprehensive laws that protect the rights ofindividuals and promote equality of opportunity for all.The World Values Survey revealed the open nature ofour society, identifying Britons as among the world’smost tolerant people. 13Sources:1. The Boston Consulting Group/World Economic Forum 2011. Global Talent Risk – Seven Responses2. The Boston Consulting Group 2013. $15 Trillion at Stake - the Looming Global Workforce Crisis3. ONS 2013. Women in the Labour Market, 20134. World Economic Forum 2013. Global Competitiveness Report 2013-145. World Bank 2012. Doing Business 2012: fDi Intelligence, from the Financial Times Ltd (2013)6. Department for Business, Innovation & Skills calculations based on established OECD methodology (OECDindicators no longer provide an overall index)7. OECD 2013. Education at a glance (data refers to 2011)8. Eurostat 2014. News release: labour costs in the EU 289. Eurostat calculations 2014. Minimum wage statistics. For most countries, the minimum wage is agreed interms of a monthly rate. For Ireland, France, the UK and the USA, the minimum wage is fixed at an hourlyrate. For purposes of comparison, these hourly or weekly rates have been converted to a monthly rate, usingfactors supplied by the countries concerned10. Eurostat 2013. European Union Labour Force Survey – annual results 201211. Ernst & Young 2014. UK Attractiveness Survey 201412. Von Ahn, N., Lupton, R., Greenwood, C. and Wiggins, D., 2010. Languages, Ethnicity and Education in London.London: Institute of Education13. Berggren, N. and Nilsson, T., 2013. Does Economic Freedom Foster Tolerance? Kyklos, 66: 177–20714. Workplace Employment Relations Survey 201115. Department for Business, Innovation and Skills, 2013Trade Union Membership 2012: Statistical BulletinIndustrial relationsOur flexible employment relations laws enable allparties to work together towards long-term businessviability. Industrial action is at an historic low, comparedto the 1970s and 1980s, and more managers are nowrecognising the positive role that trade unions play in theworkplace. 14The pay and conditions of most employees in the UKare not negotiated, as not all of the UK’s workforce aresubject to collective bargaining. In fact, 29 percent are,falling to 17 percent in the private sector, 15 which is lowcompared to other European countries.

22 Invest in the UK: your springboard for global growthInvest in the UK: your springboard for global growth23Other taxesR&D tax credits are another form of corporation taxrelief that can reduce your tax bill if you undertakeR&D activity in the UK. There are different schemesaccording to company size. R&D credits reduce the costof qualifying R&D expenditure by around 45 percent for aprofit-making SME, 33 percent for a loss-making SME andaround eight percent for a large company.We offer large companies an ‘above the line’ (ATL)credit giving a taxable ten percent credit for qualifyingR&D activity. The scheme also includes a ‘superdeduction’,which allows companies to reduce theirtaxable profits by 130 percent of their qualifying R&Dexpenditure. This super-deduction will be withdrawnby 2016 and replaced by the ATL scheme.How the ‘above the line’ credit worksR&D expenditure£2 million10% credit £200,000Tax on credit (assumed at 20% rate) £40,000Net benefit of tax credit(£200,000 - £40,000)£160,000Big-budget inward investment continues in 2014 with theproduction of the new Star Wars film and the sequel toAlice in Wonderland.You can also get tax relief for animation programmesand high-end television productions – creative industriesthat the UK also excels at. The rate of relief is set at 25percent on qualifying production expenditure, subject to acultural test. Over £276 million was invested in UK-basedtelevision productions between April and December 2013,including international series such as Game of Thrones,Outlander, Da Vinci’s Demons and Elementary.A similar scheme for corporate tax relief came intoforce in 2014 for the video games sector. It’s an excitingtime for UK video gaming; we have over 500 gamesdevelopment studios producing some of the biggestsellinggames in the world, such as Grand Theft Auto,Tomb Raider and Burnout. We estimate the sector willbenefit from around £35 million a year in tax relief. 4We are introducing a fourth corporation tax relieffor theatre in September 2014. This will support andencourage UK theatre producers by offering relief at 25percent of qualifying production expenditure for touringproductions and 20 percent for other productions.Employer social security costsEmployers in the UK pay lower socialsecurity contributions - what wecall ‘national insurance’ - than mostcountries in Europe. Our rate of 13.8percent applies to earnings above £153per week (2014/15).Employer social securitycosts in selected Europeancountries 2013 5France 35–46%Italy 30–35%SwedenSpain 30.15%*Germany 18.75%UK 13.8%Ireland 10.75%**Netherlands 10.15%31.42% (average)* 30.15% generally with a maximum of €12,394 per employee** Earnings cap at €51,000Personal taxesIncome tax rates in the UK arehighly competitive with those inother European countries.Top income tax ratesin selected Europeancountries 6Sweden 57%41.8%Denmark 55.56%Netherlands 52%Spain 52%Ireland 48%FranceGermany 45%UK45%45%Our main incometax rates in 2014 are20%the basic rate on£10,000 - £41,86540%the higher rate on£41,866 - £150,00045%the top rate over£150,000Outcome: cost of R&D expenditure is reduced by 8%Source: HMT 2014Tax relief for the creative sectorOur creative economy is the largest in Europe; worth over£71 billion, it generates over £8 million every hour. 2 Weuse tax relief to support these thriving industries. Cultureand creativity is central to our identity and global appeal,and a flow of exceptional talent continues to push the UK’sworldwide influence in entertainment, the arts and media.A tax relief or tax credit is available for the productionof qualifying films, video games, animation and high-endtelevision. If you make a film in the UK that qualifies asculturally British, or is an official co-production, you canapply for film tax relief. This offers a corporation tax creditworth up to 25 percent on the first £20 million of qualifyingproduction expenditure, and 20 percent above this figure.International film makers are flocking to the UK as a result.Investment in the UK film production exceeded £1 billion in2013, 14 percent higher than 2012. 3 Eighty-one percent ofthis figure was generated by 37 major international filmsmaking the UK their production base, including Disney’sMuppets Most Wanted and Cinderella and 20 th Century Fox’sFrankenstein.£Our creative economy is thelargest in Europe; worth over£71 billion, it generates over£8 million every hourOver £276 million wasinvested in UK-based televisionproductions between April andDecember 2013Film tax relief offers acorporation tax credit worthup to 25 percent on the first£20 million of qualifyingproduction expenditure, and20 percent above this figurePensionsOur state pension provision is complemented by amodernised private workplace pension system, the largestin Europe and collectively worth in excess of £1.6 trillion. 7 Inresponse to longer life expectancy and a fall in the number ofpeople saving for retirement, we are introducing automaticenrolment into workplace pensions. Due for completion in2018, it will mean millions more people are saving privatelyfor their retirement.We are also giving people more choice over the use oftheir pension savings. From April 2015, savers will get totalfreedom over how they withdraw pension money - forexample they could take it all as lump sum, draw it down overtime, or buy an annuity that guarantees an annual income.You and your UK-based staff can enjoy this same flexibility,even if only based here for the short term.You’ll find this enrolment system simple to administer.Basing your business in the UK does not mean havingto set up your own company pension scheme, althoughyou are free to do so. You can enrol employees into anysuitable scheme, or use the National Employment SavingsTrust (NEST) – a low-cost pension provider designedspecifically to support automatic enrolment. Whileemployers must enrol eligible staff to an appropriatescheme, ongoing membership is not compulsory foremployees – they can opt out if they wish.£

24 Invest in the UK: your springboard for global growthInvest in the UK: your springboard for global growth25Indirect taxesFinance and BankingValue Added Tax (VAT)VAT is the principal indirect tax andapplies in all EU countries. The UK rateof 20 percent is in line with the averageEU standard rate and applies to bothgoods and services. VAT is primarilya tax on consumption, so as a generalrule it will not affect your business ifnot an end consumer. Businesses thatare taxable for VAT are normally able torecover any VAT incurred.The UK is unique in having a broad rangeof zero-rate supplies, meaning that VATon the supply is zero percent but inputVAT can still be reclaimed. Examples ofgoods and services that may be zerorated(depending on the product andthe circumstances of the sale) are somefood categories, books and newspapers,children’s clothes and shoes.The bigpictureOur highlycompetitiveoverall taxposition is clearwhen corporate,income, socialsecurity andindirect taxesare comparedSources:1. The World Bank. Doing Business 20142. Department for Culture, Media & Sport January 2014. Creative Industries Economic Estimates3. British Film Institute January 2014. BFI Statistical Yearbook 20134. HM Treasury April 20145. Ernst & Young. 2013-14 The Worldwide Personal GuideImporting and exportingYour UK-based business can takeadvantage of the EU’s extensivesystem of Free Trade Agreementsand other preferential arrangements.There is no duty to pay if you importfrom or export to another EUcountry. Regulations will vary if youare exporting to a non-EU country,but in many cases preferentialarrangements are in place that meanyou benefit from reduced or nil ratesof duty. If no such arrangementsexist, you might be eligible for oneof many duty relief schemes. Ourtax authority, HM Revenue andCustoms, provides an excise andcustoms telephone advice line andextensive online guidance to helpyou understand these issues.International Tax ComparisonUK exportstrengthSpain 30 21 52 30.15Italy 31.4 22 43 32.5Germany 29.61945 18.75Netherlands 25 21 52 10.15UK 21 20 45 13.8Ireland 12.52348 10.75United States 40 4 39.6 6.2Our EU tradingadvantages help tomake the UK one ofthe top ten biggestexporters of goodsand services in theworld. 8 Our exportsincreased to a record£506 billion in 2013. 9We are also thesecond largest globalonline retail exporterafter the USA. 10France 33.33 20 45 40.5Singapore 177 20 160 25 50 75 100 125150Corporate Tax Rate % VAT/GST Tax Rate % Income Tax Rate % Employer Social Security Tax Rate %Note: Effective corporate tax rates. The rates do not reflect payroll taxes, social security taxes, net wealth taxes, turnover/sales taxes and other taxes not levied on income.Income Tax Rate selected is the highest rate payable The United States does not levy a federal value added tax. Individual states levy sales tax at various rates subject tostate-set requirements. E.g. a 4% Sales Tax in New York is used as a proxy. Employer social security rates for France and Italy are set at the mid-point of the existing range.Source: Data from Ernst & Young 2013-14 The Worldwide Personal Guide, KPMG Global Tax Rates Online, KPMG 2014. Individual income tax rates table (online), HMRC data6. KPMG 2014. Individual income tax rates table (online). 2014 rates where available – otherwise 20137. IMA 2013. Asset Management in the UK 2012-13: the IMA Annual Survey8. Central Intelligence Agency 2014. The World Factbook: country comparison – exports9. Office for National Statistics 2014. Statistical bulletin: UK Trade, April 201410. British Retail Consortium and Google 2014The UK is Europe’s leading financial services hub. Secure, stable yet constantly innovating, the sectorcreates a wealth of new business opportunities. Foreign companies invested a cumulative £40 billion inour financial services sector between 2008 and 2011 - close to a third of total foreign direct investment,and more than any other sector in the UK.UK finance: the headlinesLondon competes withNew York for the title ofthe world’s number onefinancial centreThe largest centre forcross-border bankingAccounts for 41percent of globalforeign exchangeLargest exporter offinancial and relatedprofessional servicesin the worldEurope’s premier centrefor Islamic financeFastest-growingfinancial technologysector in the world“It is inarguable thatLondon is the leadingoffshore renminbi centrein Europe. The trendsare strong... it (London)is building on thestrengths it has.”- Wenjian Fang, chief executiveof Bank of China UKFinancial and related professionalservices contributed £174 billion tothe UK economy in 2012, a third ofwhich came from exports. The sectorgenerated a record trade surplusof £61 billion in 2013, making theUK the world’s leading exporter ofthese services. 1 This was double thatof the next largest trade surplusesrecorded by Switzerland, the USA andLuxembourg.London is the beating heart of ourthriving finance industry. Our capitalvies with New York for the status ofthe world’s leading financial centre,with the Global Financial CentresIndex barely able to separate thetwo cities in its assessment of theircompetitive strengths.Two centres that have pushed theirway up this index in recent years- Hong Kong and Singapore – areexamples of financial centres that havemodelled themselves on UK practices.Global Financial CentresIndex 15 (March 2014)RankingFinancial centreIndexscore/10001 New York 7862 London 7843 Hong Kong 7614 Singapore 7515 Zurich 7306 Tokyo 7227 Seoul 7188 Boston 7159 Geneva 71310 San Francisco 711BankingThe UK is the largest centre forcross-border banking with 18percent of the outstanding value ofinternational bank lending at theend of 2012. We are also the largestcentre for cross-border borrowing.The UK’s banking sector is trulyinternational in nature. Over 250foreign banks operate in London.Our banks’ assets are the fourthlargest in the world behind China, theUSA and Japan. International bankshold nearly half of the UK’s bankingsector assets.The monetary and financial stabilityof our system is maintained by theBank of England, the independentcentral bank of the UK.Investors can access a wide varietyof finance providers and options.The World Bank rates the UK as thejoint easiest place in the world toget credit. 2Foreign currency trading is thecornerstone of international trade.The UK accounted for 41 percentof global foreign exchange (forex)trading in April 2013, well aheadof the USA (19 percent), Japan (6percent) and Singapore (6 percent).Twice as many US dollars aretraded on the forex market in theUK than in the USA, and more thantwice as many euros are traded inthe UK than in all the euro-areacountries combined. Internationalbusinesses are attracted by thestability that this huge marketprovides, and the diversity ofproviders to meet every need.

26 Invest in the UK: your springboard for global growthInvest in the UK: your springboard for global growth27Largest banking centres (assets, $billion, 2011/12)International bank lending (% share of total, end-2012)Innovation in financial servicesTechnology is transforming the financial servicesindustry – and we lead the way. Our expertise in ‘fintech’has helped make the UK the biggest e-commercemarket in Europe 5 and the second largest data centremarket in the world. Management consulting firmAccenture reports that investment in fintech is growingfaster in the UK and Ireland than anywhere else inthe world. The volume of deals, mostly connected toLondon, has grown at an annualised rate of 74 percentsince 2008, compared with 27 percent globally and 13percent in Silicon Valley. London alone accounts for 53percent of total European investment in the sector. 616,20014,33612,59310,9508,9425,1043,611China US Japan UK France Germany Canada* Total assets of commercial banks, including subsidiariesSource: IMF, TheCityUK estimates39BorrowingLending19 UK1814US115Japan115 Germany88France8532NetherlandsHong KongLuxembourgOthers43334Source: BIS“London has emerged as thefintech capital of Europe.”- The Boom in Global Fintech Investment: A newgrowth opportunity for London, Accenture 2012Stock exchange listingListing in London allows you to tap into one ofthe deepest pools of international equity assetsin the world.The London Stock Exchange (LSE) is the oldest and fourthlargeststock exchange in the world. It is also the mostinternational, 3 with almost 3,100 companies from over 70countries. You can list on a number of different stock exchangesdesigned to cater for different needs. Examples include:• The LSE’s Main Market, Europe’s largest listings marketfor established companies.• The LSE’s Alternative Investment Market (AIM), a leadinggrowth market and popular choice for internationalcompanies for its capital-and profile-raising opportunities.• London Metal Exchange, where over 80 percent of theworld’s non-ferrous metal futures are traded.• ICE Futures Europe, the largest regulated energy futuresexchange in Europe, and the second largest in the world.• techMARK and techMARK mediscience are speciallydeveloped segments of the Main Market designed forcompanies at the forefront of innovative technology.2013 was the London StockExchange’s best year for flotationssince 2007, with 105 companiesraising a combined £15.7 billion frominitial public offerings (IPOs). Thisincluded 36 technology IPOs, raisinga combined £1 billion.International influence:two examplesOur status as a leading global financialcentre allows us to create internationalopportunities that others cannot match.Islamic financeBy opening up the market for Islamic products theUK is the leading Western country and Europe’spremier centre for Islamic finance, with US$19billion of reported assets. 4 Six banks offer fullySharia compliant services and at least 20 otherfinancial firms offer Sharia compliant windows.In 2013 we announced plans to become the firstcountry outside the Islamic world to issue anIslamic bond. The launch of a £200 million Shariacompliant‘sukuk’ in 2014 opens up a further routefor investment in infrastructure projects.RMB business hubLondon is established as the Western hub foroffshore renminbi (RMB) trading, and agreementsare in place that lay the groundwork for London tobecome the Western hub for investment into Chinatoo. Not only is the flow of RMB funds throughLondon expected to increase, but doing business inChina will become easier for UK-based companies.Almost two-thirds of all RMB payments outsideChina and Hong Kong now take place in London and28 percent of all international RMB payments aremade in the UK, the most outside Hong Kong andmainland China.Access to financeA new business bank tosupport smaller businessesSmaller businesses need finance markets to work for themif they are to act as drivers of innovation and economicrecovery. Access to finance has not been easy for smallercompanies in recent years, with a lack of diversity offinancing options and a reluctance to lend to certain typesof businesses.We have created a British Business Bank to tackle theseissues, a state-backed economic development bankmanaging £3.9 billion of UK Government funds to createmore efficient and smaller business-friendly financemarkets. Working on a commercial basis with over 70partners, the British Business Bank uses governmentfunding and targeted guarantees to encourage the privatesector to increase lending and investment. Twenty fivethousand UK-based businesses were benefiting frombusiness bank solutions at the end of 2013. 7The world’s oldest export credit agency.UK Export Finance (UKEF) has supported exporting UKbasedcompanies for nearly a century, offering solutions tothe financial risks of doing business abroad for companiesof every size. Recent enhancements to this support includea £3 billion direct lending capability to make competitivefinance available for buyers of UK goods and services, and abroadening of UKEF’s remit to allow it to support exports ofgoods sold on short credit terms.Sources:1. TheCityUK January 2014. Key Facts about UK Financial and Related Professional Services2. World Bank 2013. Doing Business 2014: Understanding Regulations for Small and Medium-Size Enterprises3. World Stock Exchanges.net 2014. List of stock exchanges around the world. Available fromhttp://www.world-stock-exchanges.net/4. TheCityUK 2013. Key facts about the UK as an international financial centre5. Ecommerce Europe 2013. The Europe B2C ecommerce report 20136. Accenture 2014. The Boom in Global Fintech Investment: a new growth opportunity for London7. British Business Bank 2014 (online)The world’s first investment bankdedicated to greening the economyWe have set up the UK Green Investment Bank (GIB) withfunding of £3.8 billion to invest in innovative, environmentallyfriendly projects that lack support from private markets. GIBinvests in UK projects which are both green and commercial inareas such as offshore wind, energy efficiency and wasteand bioenergy.Improving the supply of business finance is one of the fivestrands of our Industrial Strategy - a long-term, whole-ofgovernmentapproach to support economic growth. You canfind out more on page 49.UKTI FinancialServices OrganisationThe UKTI Financial Services Organisation (FSO)is available to help you find the right investmentopportunities in the UK and expand yourbusiness internationally. You can draw on theirin-depth industry expertise, teams of specialistsand extensive networks across the globe. TheFSO also focuses on key UK strengths, includinginvestment management, insurance, financialtechnology, Islamic finance and RMB trading.For more information contact FSO by email:enquiries@ukti-invest.com or telephone:+44 (0)207 215 5152.

28 Invest in the UK: your springboard for global growthInvest in the UK: your springboard for global growth29Property and PlanningIf you need to build or extend premises, the simplicity of our planning process may surprise you.The World Bank rates our process for obtaining construction permits (including gaining planningpermission) as one of the most efficient in the EU - higher than Switzerland, the Netherlands,France and Ireland. 1UK property: the headlinesA national planningpolicy with apresumption infavour of sustainabledevelopmentMore certainty overplanning applications,less risk of wastingtime and moneyChoose the UK as the place to startor expand your business and youwill find a great place to live andwork in our dynamic and transparentproperty market. The UK is a land ofcontrasting landscapes. We have someof the world’s great metropolises,including three of Europe’s ten mostpopulated urban areas - London,Manchester and Birmingham. Yet allFour iconic capital citiesof our cities lie within easy reach ofbeautiful countryside - all within an arealess than half that of France.A wide range of commercial propertyoptions exists across the countrywith stable rents and flexible leasearrangements. There are no restrictionson overseas companies either buying orrenting property in the UK.The National PlanningPolicy FrameworkIn 2012 we introduced a new singledocument setting out how theplanning system in England shouldpromote sustainable development -the National Planning PolicyFramework. This framework is aradically simplified statement whichplaces emphasis on clear and up-todatelocal plans. These plans are drawnup by Local Planning Authorities andset clear frameworks for how theirareas will develop over time.Scotland, Wales and Northern Irelandare responsible for their own land useplanning and their systems operatealong similar lines (Northern Ireland’ssingle planning document takes effectfrom April 2015).At the heart of the National PlanningPolicy Framework is a presumption infavour of sustainable development.This means if your building plans fitwith the Local Plan, permission shouldbe granted without delay. This plan-ledapproach has two major advantages:• A clear steer on the sort ofdevelopments likely to beapproved gives you morecertainty over the outcomeand less risk of wasting timeand money on lengthy orunsuccessful applications.• Faster decision-making.You might also benefit from ‘permitteddevelopment rights’ that allow theconversion of existing agricultural, retailand commercial buildings without theneed to submit a planning application.This new process isalready making an impact:> 3/4of major projects are now decidedon time (within 13 weeks) and themajority of smaller projects aredecided within eight weeks withapproval rates at 88 percent 6> 178,000new homes were approved onmajor residential schemes inEngland during 2013/14, 23percent up on the previous year 7A more efficientplanning processthan Switzerland, theNetherlands, Franceand Ireland76 percent of majorbuilding projectsdecided within 13 weeksFaster applicationprocess for majorinfrastructureprojects with a 94percent consent rateDesignated areaswith simpler andmore flexible planningprocessesLondon is the UK’s capital city andthe largest in Europe, a world withina city where around 230 languagesare spoken. With four UNESCOWorld Heritage Sites and the crownas the shopping capital of theworld, 2 London attracted a record16.8 million international visitors in2013, a 43 percent increase over tenyears. 3 It competes with New Yorkfor the status as the world’s leadingfinancial centre, and hosts Tech City,the technology cluster that includesgiants such as Facebook, Google,Intel and Cisco.Belfast is the capital city ofNorthern Ireland. It was named asone of the ‘Best of the World Must-See Places’ for 2012, 4 and describedas ‘a capital that is redefining itselfin the eyes of the world’. The city isthe gateway to Northern Ireland’sbeautiful scenery and attractionsthat include the world famousGiant’s Causeway. Belfast’s economyis dominated by hi-tech, servicesector companies, and has a fastgrowingcreative industries sector.The capital of Wales, Cardiff, has arich cultural and sporting heritagethat helped National GeographicMagazine chose it as one of the tenbest places in the world to visit. 5It has more green space than anyother major city in the UK and ishome to Cardiff Bay, Europe’s largestwaterfront regeneration project. Thecity has a growing reputation in theprofessional and financial servicessector, and has a strong biosciencescluster linked with Cardiff University.Edinburgh is Scotland’s capital,and the UK’s second most populardestination for international visitorsafter London. Edinburgh can claimto be one of the cultural capitalsof the world – it is UNESCO’s firstCity of Literature, and hosts theworld’s largest book and performingarts festivals. It is the UK’s secondlargest financial centre and isrenowned for the quality of itsresearch base in areas that includestem cell research and regenerativemedicine, biotechnology, genomicsand renewable energy.Buying land and propertyThe UK has one of the most active property and mortgage markets in the world. Her Majesty’sLand Registry provides the assurances you need if you invest in property in England and Wales.Elsewhere in the UK this service is provided by Registers of Scotland and by Land and PropertyServices in Northern Ireland.Land Registry has over 150 years’ experience in registeringland and property, managing over 23 million titles (theevidence of ownership). Its expertise is recognised worldwideand called upon to help develop registration systems inother countries. Land Registry’s drive to become a leader indigitised land and property services means you benefit from:• Reduced costs and processing times as theirservices move online.• More user-friendly services, including a centralisedaccess point for local land charge searches.Making major infrastructure projects happenWe take a more centralised approach to planning applicationsfor critical infrastructure developments. Decisions onprojects of national significance (including energy, transport,water and waste proposals) are made by governmentministers in line with official policy after examination by ourPlanning Inspectorate. Time limits for the whole processenable investors and developers to plan more effectively.We have given planning consent for 94 percent ofapplications for major infrastructure projects under thisprocess and in shorter timescales. 8Our new Specialist Planning Court also speeds up thehandling of legal challenges to major infrastructure consents,removing some of the risk and uncertainty that can threatena minority of investment decisions.

30 Invest in the UK: your springboard for global growthInvest in the UK: your springboard for global growth31“Receiving permission to construct a new nuclear power station at HinkleyPoint C is a huge achievement… it reflects an extraordinary level ofprofessionalism and work from EDF Energy’s planning team, the PlanningInspectorate, local authorities and a wide range of stakeholders.”- Vincent de Rivaz, EDF Energy Chief Executive, at the time EDF Energy gained planning consent fora new Nuclear Power Station at Hinkley Point C within 17 months of submitting application to thePlanning Inspectorate.Growth-boosting areasWe have given certain areas of the UK greater flexibility to take action needed to create jobsand economic growth. These are great places to locate a business – you benefit from a range ofpractical support, including simplified planning procedures.Local Enterprise Partnerships(LEPs) are partnerships betweenlocal authorities and businesses thatdecide on local economic prioritiesand infrastructure needs. Thereare 39 LEPs across England, allwith different offers to investorsdepending on local industry sectorstrengths.Enterprise Zones offer a widerange of support to help establishand expand your business andcreate jobs. Their simplified planningapplication process includes LocalDevelopment Orders, used to grantautomatic planning permission forspecified types of development.You can access similar benefits inScotland’s four Enterprise Areas.These are focused on specificsectors (including life sciences, lowcarbon/renewables and generalmanufacturing) and based in 14strategic locations across the country.City Deals empower cities to takelocal control of their economicopportunities and challenges. Thereare 28 cities in England with dealsplanned or in place, giving themnew powers in exchange for greaterresponsibility to stimulate and supporteconomic growth in their area.By locating in one of the 31Enterprise Zones in England andWales you can also benefit from:Financial benefitsYou could claim up to 100 percentbusiness rates relief (worth up to£275,000 over a five-year period).A business-readyinfrastructureThe zones have access to goodtransport links and superfastbroadband.An on-site customerand supply baseMany businesses chooseEnterprise Zones that can providethe goods and services they need,meaning increased sales andreduced distribution costs.Long-term localinvestmentAll business rates growthgenerated within a zone for aperiod of at least 25 years willbe reinvested to support localeconomic growth.Case studiesEnterprise Zonesin actionAt Alconbury Enterprise Zonea joined-up approach to planningmeant that the Local PlanningAuthority was able to approvethe Zone’s award-winning smallbusiness incubator in just 37days, giving a major boost toinnovation in the area.City Deals in actionLeeds City Region Deal includes:• £1.4 billion to improve publictransport, roads and otherinfrastructure.• A new 14-24 apprenticeshipsacademy to meet the skillsneeds of local young peopleand employers.• Creating 15,000 newapprenticeships.• Ultra-fast broadband for88,000 homes and over16,000 businesses.Join a clusterClusters of businesses from the same orcomplementary industry sectors havecome together as centres of excellenceand innovation across the UK.Locating your business in a relevantindustry cluster could help you to:Access a larger poolof skilled labourImprove yoursupply chainsReduce research anddevelopment (R&D) costsby sharing facilitiesExchange knowledgeand ideas with specialistsin your sectorSources:1. World Bank 2013. Doing Business 2014: Understanding Regulations for Small and Medium-SizeEnterprises2. Centre for Retail Research 2011. World Shopping Capitals 2011 Survey3. ONS 2013. Travel Trends, 2013 release4. National Geographic Traveler5. National Geographic 20116. Department for Communities and Local Government June 2014. Planning Applications:January to March 2014, England7. Home Builders Federation New Housing Pipeline Report June 2014: January to March 20148. Figure correct and end April 2014; 17 out of 18 applications for Nationally SignificantInfrastructure projects that have reached the decision stage have been approved9. ADS Group 2014Examples of our thrivingbusiness clustersDigital technologyThere are centres ofexcellence in digitaltechnology in areas suchas Cambridge, East London(Tech City), Manchester,Glasgow, Bristol, Malvernand Sunderland.BiomedicalIn the biomedical sector,the Oxford, Cambridge andLondon ‘triangle’ housesthe UK’s largest cluster ofinnovation and industryexpertise.AutomotiveThe leading automotivecluster in the UK is in theWest Midlands, but therehas also been major foreigninvestment in other areasincluding Sunderland,Ellesmere Port in Merseyside,Burnaston in Derbyshire,Swindon, Wolverhamptonand the Sheffield City RegionEnterprise Zone.AerospaceOur aerospace industry isthe second largest in theworld. 9 There are importantclusters in several regions ofEngland but also in Prestwickand Glasgow in Scotland,Broughton in Wales andBelfast in Northern Ireland.Agri-techA thriving agri-tech cluster inthe Norwich and Cambridgeareas takes advantage ofsome of the most fertilegrowing land in the country,side-by-side with world-classuniversities and multiplescience and research centresspecialising in crop scienceand agronomy.R&DCutting-edge R&Dcapabilities serving arange of industry sectorsare harnessed at severalEnterprise Zones. Examplesinclude the network ofscientific researchers atOxford Science Vale, thestate-of-the-art facilitiesfor advanced engineeringtechnology at Sci-TechDaresbury, and the transportsystems R&D capability atMIRA Technology Park inLeicestershire.

32 Invest in the UK: your springboard for global growthInvest in the UK: your springboard for global growth33Ease of Doing BusinessSetting up a business in the UKThe entrepreneurial spirit is stronger than ever in the UK. New businesses are being set upin record numbers – over half a million in 2013. 1 Many factors come together to create ourbusiness-friendly environment.An individual can set up a business very easily in the UK without formal registration or regulation.Most businesses however, choose to ‘incorporate’ and adopt one of a number of legal forms whichgive the business a separate legal personality.UK ease of doingbusiness: the headlinesEasiest major economyin Europe to dobusiness inEconomy growing atthe fastest rate in theG7 in 2014Largest deficitreduction of any majoradvanced economyFlexibility to choosea company structurethat suits your needsCorporate governancebased on principles, notburdensome regulationFair and openpublic procurementproceduresLondon is the world’sleading centre forcommercial litigationand arbitrationGround-breakingapproach to reducingregulatory burdens issaving business timeand moneyThe World Bank reports thatit’s easier to do business inthe UK than any other majorEuropean economy. 2 Theirassessment includes factors suchas a regulatory environmentconducive to starting a business,the ability to enforce contractsand general legal protection.We are constantly improving ourbusiness environment, adaptingthe market frameworks thatprotect your business and free itfrom unnecessary regulation andadministrative burdens.Company lawThe UK is an international standardsetter for company law. We developedsome of the key features of ourcurrent legal framework over 150years ago, and the influence of thisfirst modern company law can beseen all around the world.Ultimately our legal and regulatoryframework is about enabling businessto succeed; it provides the certaintyneeded to facilitate trade and attractinvestment to the UK.The core principles ofour legal and regulatoryframework are:FlexibilityYou can decide theownership, financeand decision-makingstructures that workbest for you.Transparencyand accountabilityRequirements to maintainpublic records and reportinformation are based onthe principle that trust iskey to business success.ProportionalityThese requirements areappropriate to the size ofthe business and natureof ownership.In a survey of senior managers fromUK-based international companies,90 percent said the stability andtransparency of our political, legal andregulatory environment make the UKan attractive location for new activities. 3This means the organisation can do business and enter intocontracts in its own name. Incorporating makes it easier toraise finance, in particular because investors enjoy limitedliability. The company’s finances are separate from their own,so personal assets are not at risk. The limited company is themost commonly used incorporated legal form, but UKTI canadvise on other options (see page 52).The process of incorporating a company in the UK is quick,easy and can be done electronically. For a small additional feethis process can be completed on the same day. CompaniesHouse, our registrar of UK companies, also now offersincorporation online.One of the advantages of the company model is the freedom toagree your own rules and structures, provided these are withinthe law. UK legislation provides model ‘articles’ for differenttypes of company which you can adopt or modify as needed.If you run an incorporated company you will need to providefinancial and other information each year. The process forfiling these documents is simple and can be completedelectronically, saving you time and money.The UK Corporate Governance CodeOur legal and regulatory framework is supplemented by the UKCorporate Governance Code. The Code is not a rigid set of rules;it sets out good practice for companies on issues such as boardleadership and effectiveness, pay, accountability and relationswith shareholders. At the heart of its flexibility is the trademark‘comply or explain’ approach. UK listed companies are requiredeither to comply with the provisions of the Code, or explain toinvestors in their next annual report why they have not done so.This approach, widely admired and imitated internationally, givesyou flexibility to adopt a governance framework that fits yourspecific circumstances.Competition lawOur competition regime has a strong global reputation, and theUK is seen as having open and fair markets which work well.If you are looking to start or expand your business in the UK,competition law protects you from anti-competitive practicein the market. We want the best and most efficient businessesto thrive, and for consumers to feel the benefit in the process.UK competition law is a flexible instrument. In most areas thelegislation is based on the premise that each case should bejudged by the actual effect that a practice has on competitionand whether it is against the public interest.If you are an entrepreneur or innovator in the UK, our robustintellectual property system will help you protect yourinnovations and creativity. Find out more on page 46.Procurement policyWhen you come to the UK you can be sure that public sectorprocurement is open, fair and transparent. You can bid toprovide goods or services either through a direct contract orby becoming a subcontractor. Public procurement in the UK isgoverned by EU Procurement Directives. This legal frameworkhelps to make public procurement a fair and open processacross the EU.We are making this process even more transparent, givingyou the confidence and time to invest in the resources towin contracts. In England a free online tool called ‘ContractsFinder’ will help you find information about current, futureand past contracts with government and its agencies, aswell as sub-contracting opportunities. Scotland, Wales andNorthern Ireland also have their own dedicated public sectorprocurement websites.Contract notices and bid documents explain the biddingprocess and the supporting documentation needed, and aguide is available for small businesses on tendering for publicsector contracts.Information about contracts is subject to the Freedom ofInformation Act 2000. You have a right to ask for detailedinformation about the bidding process. If your bid isunsuccessful, public sector organisations must give youfeedback if requested.Under the Freedom of Information Act, information in yourtender can be disclosed to anyone who asks for it unless it isexempt. Guidance is available on exemptions. If any informationin your tender is commercially confidential you can ask for anon-disclosure agreement.Our Department for Business runs a ‘Mystery Shopper’ servicethat provides a direct route for suppliers to feedback on publicprocurement practice and spot-checks public bodies to makesure that their procurement is small-business friendly.

34 Invest in the UK: your springboard for global growthInvest in the UK: your springboard for global growth35Legal frameworkThe UK has an international reputation for stability and consistency in its common law andgovernance. The rule of law is the foundation of a prosperous economy and free society.Property rights, the enforceability of contracts, the policing of criminal activities and protectionagainst the arbitrary use of state power give international businesses confidence in the UKas a trusted investment destination.Other countries are seeking to emulate the UK’s pioneering approach;France, Italy and Spain are introducing a ‘One-In, One-Out’ scheme toboost their competitiveness.UK lawLondon has long been recognised as a primary centre forinternational and commercial litigation and arbitration.International companies are most likely to turn to English lawif a third-party legal system is needed to resolve commercialdisputes. Such companies are twice as likely to chooseEnglish law over any other governing laws for arbitrations,for example. 4 Over 4,300 international arbitration andmediation disputes were resolved in the UK in 2011. 5 ScotsLaw, while different in many important aspects from Englishlaw, is closely aligned when it comes to commercial law andother areas affecting business. Wherever you choose tolocate your business in the UK, you can be sure of having awide choice of world-class legal advice.The strength of our law lies in the ideal combination ofpredictability and flexibility. Courts follow their earlierdecisions, providing continuity and certainty – but will adaptpast rulings to meet modern business needs where needed.Monetary policyOur economic policy objective is to achieve strong,sustainable and balanced growth that is more evenly sharedacross the country and between industries. Price stability iscentral to this objective – this means targeting a low, stableinflation rate. Our inflation target of two percent is criticalfor creating certainty for businesses and consumers aboutmedium-term price changes. It means you can predict yourfuture costs and income with more confidence and investsecurely for optimal long-term growth.The Monetary Policy Committee (MPC) of the Bank ofEngland has full operational independence to set policiesto meet the inflation target. The separation of fiscal andInternational arbitrationand mediation disputes wereresolved in the UK in 2011The InternationalMonetary Fund predictsthat the UK economywill continue to grow atthe fastest rate in theG7 in 2014monetary policy is a key feature of the UK’s economic policy.Our commitment to price stability pushed inflation down toour target of two percent in December 2013 and it has fallenbelow this rate in the first quarter of 2014.Low inflation has helped to drive the UK’s strong economicgrowth. In the fourth quarter of 2013 the UK experiencedthe fastest growth of the G7 economies, joint with Canada. 6The International Monetary Fund (IMF) predicts that the UKeconomy will continue to grow at the fastest rate in the G7 in2014. The recovery is balanced across all the main sectors ofthe economy, with manufacturing, services and constructionall growing by over three percent in the year to March 2014.Fiscal policySince the coalition government came to power in May 2010we have been resolute in our action to bring about stable,balanced economic growth based on sustainable levels ofpublic and private sector borrowing. Restoring tight control ofpublic finances is essential for economic security - by reducingthe gap between what we spend and what we raise in taxes wehave created the conditions for long-term growth.In 2010, the IMF forecast that the UK would have the largestheadline and structural deficit of any G7 economy. Our fiscalpolicy has transformed this situation and the deficit is forecastto have halved from its peak by the end of this financial year.In spring 2014, the IMF reported that the reduction in bothour headline and structural deficits was the largest of anymajor advanced world economy. By 2018-19 the independentOffice of Budget Responsibility predicts we will run our firstsurplus for 18 years. Reducing and then eliminating the deficitin this way means lower interest payments for consumersand business, more jobs, greater prosperity – and the ideal> 4,300 > 2 millionPrivate sector jobs have been createdsince early 2010, and employmentreached its highest ever level in 2014environment for your business to thrive in. Over twomillion private sector jobs have been created sinceearly 2010, and employment reached its highestever level in the first quarter of 2014.Regulatory policyGetting rid of unnecessary regulations is centralto our drive to make the UK the best place forinvestors to start, finance and expand theirbusinesses. We consider regulation to be a lastresort, an approach that will save your businesstime and money. We will keep or introduceregulations that help markets function effectively,and remove those that impose unnecessary costsand hinder competitiveness.Our ground-breaking approach toreducing regulatory burdens is the‘One-In, Two-Out’ rule. Any increasein the cost of regulation requires usto save twice this amount throughthe removal of regulations elsewhere.We have cut the annual cost ofregulation by over £1 billion per yearthrough this approach.Our review of existing regulations has identifiedover 3,000 that can be removed or improved.These changes will deliver savings to business ofover £850 million per year once all the reforms areimplemented.Sources:1. Start Up Britain 2014. Press release: New Figures Reveal Entrepreneurial Hotspots, 26January 20142. World Bank 2014. Doing Business 20143. Ernst & Young 2014. UK Attractiveness Survey 20144. TheCityUK 2014. Professional Services Series: Legal Services January 20145. TheCityUK 2013. Key Facts about the UK as an International Financial Centre6. OECD 2014. Quarterly National Accounts: Quarterly Growth Rates of Real GDP, change overprevious quarter (March 2014)Saving you time and moneyJust a few examples from thousands ofmeasures that benefit business.Company lawWe are giving 100,000 more businesses flexibility todecide whether their accounts should be audited.From 2015 small companies can file their companyaccounts and annual returns together, online andjust the once.Employment lawWe increased the qualification period for the right toclaim unfair dismissal from one to two years. Businessesget more flexibility to make difficult decisions whilefundamental employee protections are retained.Our Employer’s Charter dispels the myths aboutwhat employers can and can’t do when managingtheir workforce.MedicinesMovement towards a ‘one stop’ principle for approvingchanges to medicine licences should save business atleast £25 million per year.AviationBetter use of UK airspace will enable more directflight routes, bringing benefits to airlines, airports andpassengers.Health and safetyNearly 90 percent of health and safety regulationswill be scrapped or improved.

36 Invest in the UK: your springboard for global growthInvest in the UK: your springboard for global growth37InfrastructureTransportAirThe UK – small nation, big workforce, fast transport. The perfect combination to help you movegoods and people quickly around the country. With over 70 airports, 40 major ports, excellent raillinks and toll-free motorways, getting to, from and around the UK is both simple and affordable.The UK has excellent international connectivity from major airports distributed across the country.We have the largest air transport system in Europe, handling 228 million passengers in 2013. 7UK transport: the headlines£120 billion investmentis transforming thespeed and reliability ofour transport systemsThe largest airtransport system inEuropeThe second largestports industry inEuropeThe most improved railnetwork in the EULondon ranked topglobally for theefficiency, reliabilityand safety of itstransport networkKeeping your business movingWe are investing record amounts of money to enhance a transport systemthat supports 21st century business. A huge pipeline of transportimprovements worth over £120 billion is either underway or planned. 1 Nearly200 projects are scheduled for completion in 2014-15, with another 150 dueto start over the same period. 2 It’s already easier to get around; London, forexample, has even better transport connections after a £6.5 billion upgradewas completed before the 2012 Olympic and Paralympic Games. Our capitalis ranked top for the efficiency, reliability and safety of its public transportnetwork in a study of 30 of the world’s greatest cities. 3SeaWe have a vibrant port infrastructure, just as you’d expect for anisland country with our long and proud maritime heritage.• 95 percent of the volume of allthe UK’s import/export tradetravels through our ports. 4• The UK ports industry is thesecond largest in Europe interms of total tonnage handled. 5• The UK hosts four of thetwenty biggest ports in theEU by tonnage handled. 6We have over 100 commercialports in the UK, with 40 majorports providing the capacity tohandle cargo of every size andtype. There are large all-purposeports such as Liverpool, ferryports such as Dover, specialisedcontainer ports such as Felixstowe,and ports catering for bulk trafficsuch as coal or oil.UK deep water ports –three examplesLondon Gateway is combinedwith Europe’s biggest logisticspark and will provide 2,700metres of quay, six deep-waterberths and 24 giant quay craneswhen completed.The Port of Liverpool’s newdeep water container terminal(‘Liverpool 2’, open in 2015)will attract some of the world’slargest container vessels to adistribution hub with a populationof 35 million consumers within a150 mile radius.Port of Milford Haven in Walesis a natural deep water port thathandles 20 percent of Britain’sseaborne traffic of oil and gas.The UK aviation sector has more seats availableand serves more destinations on a daily basisthan any other European country. 9 You canenjoy the flexibility of multiple daily directflights to the world’s major cities. 10London is a better connected city than Paris,Frankfurt and Amsterdam. The combineddirect weekly services from London’s fiveairports go to more destinations than fromParis (two airports), Frankfurt (two airports)and Amsterdam. London Heathrow has moreflights to many major international cities thanthese three major EU hubs. Heathrow had overtwice as many direct scheduled flights in 2013to New York, Chicago, Los Angeles, Washington,Boston, Toronto, Dubai, Hong Kong, Mumbai,Delhi and Johannesburg.Average journey times by air from theUK to key European destinations 8London toAmsterdamBerlinZurichPragueRomeMadridIstanbulSource: skyscanner.netDaily direct flights to the world’s major citiesBusiness aviationYou can enjoy the flexibility of private businessCity London London Manchester Birmingham Glasgow/from our capital than any other European city. 11flights from a network of airports across theHeathrow City EdinburghUK. There are over 3,000 airports in Europewhich private jets can use, ten times theParis 17 4 7 5 7number available to airliners. Three of theAmsterdam 18 9 7 7 12busiest 25 private business airports in EuropeFrankfurt 17 5 4 4 3are in London, with more private flights to andBrussels 9 - 3 3 3Milan 12 2 1 1 2Barcelona 7 - 1 1 1New York 28 1 2 1 3Los Angeles 7 - - - -Chicago 9 - 1 - 1Tokyo 5 - - - -Delhi 6 - - - -Mumbai 6 - - - -Beijing 6 - - - -Shanghai 2 - - - -(Average number of direct passenger flight departures per day in 2014)Source: skyscanner.net plus information from UK airportsDuration by air (hours and minutes)55 minutes1 hour, 40 minutes1 hour, 30 minutes1 hour, 45 minutes2 hours, 20 minutes2 hours, 15 minutes3 hours, 40 minutes

38 Invest in the UK: your springboard for global growthInvest in the UK: your springboard for global growth39RailInfrastructureDigitalWherever you need to go in the UK, the chances are a train can take you there. Rail coverage isone of the most intensive in the EU – while only the eighth largest member state by area we havethe fourth longest rail network.We already have the best superfast broadband service of any major European economy - but ourfocus is not on today. We are building a digital infrastructure for a super-connected future, capableof supporting the huge increase in usage and the demand for lightning-fast speed.Our reformed rail industry is delivering. The EuropeanCommission found the UK network to be the most improvedin the EU, coming top in four of the 14 factors considered(including growth of overall customer satisfaction andsafety). 12 Our railways also rank as one of the best majornetworks in the EU according to a major passenger surveyconducted by the European Commission in 2013. We toppedEurope’s seven major railways in punctuality and reliability,information during journeys and accessibility.The Eurostar connection provides a fast route to mainlandEurope. You can be in Brussels or Paris in just over twohours after leaving London – a similar journey time asLondon to Manchester.You can connect easily with the Eurostar from most majorUK towns. Onward travel from the direct Eurostardestinations enables you to reach up to 100 towns andcities throughout Europe.We are spending £38 billion from 2014 to 2019 to make ourrailways even better – the biggest modernisation programmesince Victorian times. This means capacity for more trains,more seats, faster journeys and bigger, better stations.Major projects include:• The Northern Hub - major upgrades across the north ofEngland with capacity for hundreds more trains and 44million more passengers.• Crossrail - the new high frequency railway that will bringan extra 1.5 million people to within a 45 minute commutingdistance of central London.• High Speed 2 - a high-speed railway that will link eight ofBritain’s ten largest cities, serving one in five of the population.Sources:1. House of Commons Library 2013. Infrastructure Policy: Standard Note SN/EP/65942. HM Treasury 2014. Projected infrastructure starts and completions in 2014-153. PwC 2014. Cities of Opportunity 64. United Kingdom Major Ports Group Ltd 2014. The UK ports industry – a profile (online)5. Eurostat 2013. Maritime ports freight and passenger statistics 2011: gross weight of seaborne goodshandled by main ports by type of cargo6. Eurostat 2013. Maritime ports freight and passenger statistics 2011: top 20 cargo ports in 2012Fastest current journey times by rail fromLondon to key destinationsLondon toBirminghamManchesterEdinburghBrusselsParisAmsterdamSource: National Rail and Eurostar 2014RoadDuration by rail (hours and minutes)1 hour, 22 minutes2 hours, 7 minutes4 hours, 21 minutes2 hours, 1 minute2 hours, 16 minutes4 hours, 38 minutesWith 64 million people living in a relativelysmall country, you’d expect our roads to be busy.But we are taking unprecedented action to keeptraffic flowing.Investment in major projects will triple between 2013 and2020 to upgrade our roads to an entirely new standard. Andit’s not just major projects – we are carrying out hundreds ofsmaller improvements that will help to stimulate growth in thelocal economy, relieve congestion and improve safety. Safetyis something we take very seriously – only Sweden and Icelandhave safer roads than us in Europe. 137. CAA 20148. Skyscanner website9.. Airports Commission 2013. Interim Report. Data is from CAA analysis based on OAG data10. Average number of direct passenger flight departures per day in 201311. Private Fly website12. European Commission 201313. World Health Organisation 2013. Global Status Report on Road Safety 2013. Statistic based on estimatedroad traffic death rate per 100,000 of populationUK digital infrastructure:the headlinesThe best superfastbroadband service ofany major EuropeaneconomyMore ‘network ready’than any other majorEuropean economyHosting the world’sfirst test bed for 5Gtechnologies andservicesOpen and competitivebroadband andtelecoms marketsmeans lower pricesand more choiceBiggest e-commercemarket in EuropeEricsson predicts there will be some 50 billion ‘connected devices’ in use globallyby 2020 1 – an ‘internet of things’ that will drive innovation, productivity andeconomic growth. It is a vision we are ready for.The World Economic Forum (WEF) confirms the strength of our foundations. Weare ranked ahead of all the other major European economies in the NetworkedReadiness Index, a measure of capacity to use information and communicationtechnology to promote growth and social wellbeing. 2World Economic Forum NetworkedReadiness Index 2014…Finland 1Singapore 2Sweden 3USA 7UK 9South Korea 10Germany 12France 25Ireland 26Spain 34Italy 58…with the UK in the top five foreleven WEF indicators, includingWEF Indicator“The UK continues to exhibit a very strong performance. Thecountry recognised the importance of ICT to support innovationand competitiveness early. As a result, it has a well-developed ICTinfrastructure, with one of the highest population uptakes and welldevelopede-commerce.” - World Economic ForumOur broadband commitmentOur commitment to maintaining ourstatus as a leading digital nation meansthat 95 percent of UK homes andbusinesses will have access to superfastbroadband by 2017. This coverage isalready surging ahead, increasing fromaround 60 percent at the end of 2011 to73 percent by mid-2013 – higher thanFrance, Germany, Italy and Spain. 3We are ranked tenth overall in the EUfor superfast broadband coverage – aposition that speaks volumes about thescale of our infrastructure investment.The number of people in the UK in areasRankBusiness to consumer internet use 1Use of virtual social networks 2Accessibility of digital content 4Availability of latest technologies 5Business-to-business internet use 5Population e-participation 5served by superfast broadband is almostthe size of the combined populations ofthe nine countries ranked above us. Thisinfrastructure also connects businessesand communities over an area more thantwice the size of Portugal, the largestcountry in the top nine.London’s digital status illustrates thepace of change in the UK. It is rated topfor ‘technology readiness’ in a study of30 of the world’s most dynamic cities. 4This puts our capital above cities suchas Seoul, Stockholm and Hong Kong forthe strength of its digital economy andinfrastructure.

40 Invest in the UK: your springboard for global growthInvest in the UK: your springboard for global growth41Percentage of households in areas served by superfast broadband100%90%80%70%60%50%40%30%20%10%0%10-15%20 - 25%20 - 25%40 - 45%40 - 45%45 - 50%50 - 55%55 - 60%55 - 60%60 - 65%60 - 65%60 - 65%60 - 65%65 - 70%65 - 70%65 - 70%65 - 70%70 - 75%70 - 75%70 - 75%75 - 80%75 - 80%75 - 80%90 - 95%95 - 100%95 - 100%95 - 100%ItalyGreeceFranceIrelandPolandCzech RepublicCloud computingWork more efficiently by accessing data orsoftware from any internet enabled device.Large filesEasier, faster handling.SlovakiaA survey of managers from UK-based international companies found that 90percent feel our technology and telecommunications infrastructure makes the UK anattractive location for undertaking new activities. 5What does high speedconnectivity mean for me?SwedenHungaryBulgariaEstoniaRomaniaSpainSloveniaFinlandGermanyAustriaUKCyprusDenmarkSuper-connected citiesPortugalBusinesses get an additional online boost in 22 ‘superconnectedcities’ across the UK where extra fast and reliablebroadband and wireless connectivity is available. You willalso find superfast broadband increasingly available onplanes, trains and ferries in the UK as travel operators takeadvantage of new antenna technology that makes broadbandspeeds up to ten times faster.LatviaLithuaniaLuxembourgBelgiumNetherlandsMaltaSource: Ofcom 2014. European Broadband Scorecard.Keeping ahead in mobileA survey of managers from UK-based internationalcompanies found that 90 percent feel our technology andtelecommunications infrastructure makes the UK an attractivelocation for undertaking new activities. 54G internet is now widely available in the UK. Networkoperators are expecting to cover 98 percent of the UKpopulation by the end of 2015.To prepare for even faster mobile coverage we are supportinga university/industry partnership to develop the world’s firsttest bed for 5G technologies and services. This paves the wayfor ‘always sufficient’ bandwidth that gives the perception ofinfinite capacity. 5G is predicted to be 1,000 times faster than4G, making it possible to download a feature-length film to awireless device in one second. This is the sort of connectivitywe expect UK-based business to benefit from before theiroverseas competitors. It will give you the platform todevelop new products and services that are simply notpossible today.More choice, less costOur open and highly competitive telecoms and broadbandmarket means you benefit from lower prices and a widechoice of providers and tariffs to suit your needs. Effectivederegulation has also set industry free to innovate as ourdigital infrastructure opens up new possibilities.In a comparison of the average of the three lowest availableprices for standalone fixed broadband and fixed voiceservices, costs in the UK were the cheapest of the fivelargest EU economies at three different levels of broadbandspeed and data use. 6Flexible workingWork where and when you want.Wide Area Network connectivityFaster file sharing and data transferacross multiple sites.Internet Protocol (IP) telephonyBetter integration of voicecommunications.Real time information sharing.Social mediaNew opportunities to communicatewith customers and suppliers.Software as a service applicationReliability and reduced cost.Online salesNew service opportunities andhandling high-volume traffic.Derry/LondonderryBelfastBradfordSalfordPerthPortsmouthAberdeenEdinburghNewcastleYorkLeedsManchesterDerbyBirminghamCoventryOxford CambridgeNewportLondonCardiffBristolBrighton & HoveWeighted average single-service pricing for fixedbroadband and fixed voice services0 10 20 30 40 50 60 708Mbit/s, 10GB and350 mins (Basket 1)£30£30£39£45£4816Mbit/s, 20GB and350 mins (Basket 2)£45£55£59£53£53£6730Mbit/s, 30GB and50 mins (Basket 3)£48£50£46UK France Germany Spain ItalySource: Ofcom, using data supplied by TeligenThe UK onlineWe are enthusiastic adopters of internettechnologies in the UK. The take-up of both fixedand mobile broadband is the fourth highest in the EU– and take-up of superfast broadband is the highestin the five largest economies in the EU. 7 This loveof online technology, combined with huge marketdemand, makes the UK the biggest e-commercemarket in Europe – with Europe being the biggeste-commerce market in the world. 8Sources:1. Ericsson 2011. White Paper: More than 50 Billion Connected Devices2. World Economic Forum 2014. Global Information Technology Report3. Ofcom 2014. European Broadband Scorecard4. PwC 2014. Cities of Opportunity5. Ernst & Young 20146. Ofcom 2014. European Broadband Scorecard. For detailed notes accompanying this data, see page 23 of thisreport at: http://stakeholders.ofcom.org.uk/binaries/research/broadband-research/scorecard/European_Broadband_Scorecard_2014.pdf . While Ofcom note that none of the available pricing metrics is perfect inisolation, they state that weighted average pricing measures generally offer a more accurate reflection of theprices consumers are paying in a given market7. Ofcom 2014. European Broadband Scorecard8. Ecommerce Europe 2013. Europe B2C Ecommerce Report

42 Invest in the UK: your springboard for global growthInvest in the UK: your springboard for global growth43InfrastructureUtilitiesThe UK is one of the most energy secure countries in the world. We maintain this status thanks tothe combination of our own reserves, effective regulation of competitive markets, diverse sourcesof imported energy and our focus on increasing clean energy – which includes nuclear, renewablesand carbon capture and storage.UK utilities: the headlinesOne of only fivecountries worldwidewith a World EnergyCouncil ‘AAA’ ratingPrivatisation of themajor utilities meansgreater choice andlower prices forindustrial energyconsumersInvestment in ‘smartgrid’ technology willsupport the securityof our energy supplyfor future decadesLike many countries, we facechallenges in the shape of bindinglow-carbon targets and decliningfossil fuel reserves. Our responsehas been one of the most radicaloverhauls of the UK’s energyinfrastructure and markets since the1980s. The reforms we have put inplace are driving the huge amountof investment required, giving youcontinued access to the energy youneed at stable, competitive prices.The UK is one of only five countriesto receive a World Energy Council(WEC) ‘AAA’ rating. This assessmentis based on the security andreliability of energy infrastructure;the accessibility and affordabilityof supply; and environmentalsustainability. WEC report that: ‘theUK remains a “pack leader” withexcellent performance on all threeenergy dimensions’.World Energy Council Energy Sustainability Index 2013Smart gridOur investment in ‘smart grid’technology helps to safeguardthe security of our energysupply for decades to come.With better monitoring andcontrol of the power network,electricity companies will identifyfluctuations in demand and routepower to where it is neededmost. You get the reassuranceof a reliable energy supply, andcheaper prices through savings onnetwork costs.Energy costsPrivatisation of the major utilitieshas led to greater choice andlower prices for industrial energyconsumers. Our energy costsare competitive with those inother major economies in the EU,particularly for gas prices.Gas prices for industrialconsumers 2013 2CountryElectricity prices for industrialconsumers 2013 3CountryCost (€/gigajoule)Netherlands 8.43UK 9.36Italy 10.43Spain 10.65Denmark 10.74Ireland 10.81France 11.03Germany 12.16Cost (€/kWh)France 0.0771Netherlands 0.0789Denmark 0.0898Germany 0.0860Italy 0.1122UK 0.1124Spain 0.1165Ireland 0.1331Average national price without taxesElectricity generationin the UKThe security of our powersupply is aided by a healthymix of energy sources. Lowcarbon electricity’s share ofgeneration increased by 13percent in 2013, pushed byincreases in renewables andnuclear generation. 1Renewables14.8%Gas26.8%Nuclear19.8%Coal36.3%Other 1.5%Oil 0.7%Source: DECC April 2014. Energy Trends section 5: electricityincrease in low carbon electricity’s13% share of generation in 2013Cutting energy costs for UK-based manufacturersIn March 2014 we brought in a £7 billion package to cut energy bills formanufacturers, with benefits for other businesses too.• We have capped for the rest of the decade the minimum price acompany must pay for each tonne of carbon dioxide emitted. If you’rerunning a mid-sized manufacturing business in the UK this will save almost£50,000 on your annual energy bill.• We have also extended our compensation scheme for energy intensiveindustries for a further four years to 2019-20, protecting thecompetitiveness of steel makers, chemical plants, paper mills andother heavy energy users.• Users of energy from Combined Heat and Power plants are exemptfrom the tax on fossil fuels used to generate electricity.Energy securityThe effective management of primaryenergy supply, the reliability of energyinfrastructure, and the ability to meetcurrent and future demandEnergy equityThe accessibility and affordability ofenergy supply across the populationEnvironmental sustainabilityThe impact of supply and demand-sideenergy efficiencies and the developmentof energy supply from renewable andother low-carbon sources.Switzerland 1Denmark 3UK 5Spain 9France 10Germany 11Netherlands 12United States 15Ireland 20Italy 28Singapore 47Denmark 3UK 11United States 12Switzerland 19Spain 22Germany 31Netherlands 42France 44Italy 69Ireland 82Singapore 124Switzerland 1France 9Denmark 10Ireland 15UK 19Spain 23Italy 24Germany 30Netherlands 35Singapore 51United States 86Sources:1. DECC April 2014. Energy Trends section 5: electricity2. Eurostat 2013. Gas prices for industrial consumers3. Eurostat 2013. Electricity prices for industrial consumers

44 Invest in the UK: your springboard for global growthInvest in the UK: your springboard for global growth45Innovation EcosystemThe UK has a rich heritage of discovery and innovation – the UK has produced 88 Nobel Prizewinners in scientific disciplines, more than any other country apart from the USA. But we are notsimply a nation of inventors. We continue to invest heavily in an innovation system that turnsideas into commercial success.Figure 1. Ownership of R&D performed by businesses in the UK (1993-2012) 380%70%UKRest of the world60%UK innovation: the headlinesThe highest rated majoreconomy in the GlobalInnovation IndexOver half of businessR&D expenditure in theUK is by foreign-ownedbusinessesCollaboration betweenuniversities andbusiness rated asthe most effectiveamong Europe’s majoreconomiesHighest researchproductivity among thetop research nationsSecond only to theUSA among OECDcountries for the shareof the labour forceworking in R&DRanked ahead ofall of our majorcompetitors for thequality and securityof our intellectualproperty systemInnovation makes business moreproductive – which in turn makesour economy more competitive andmore responsive to change. Fromrobotics to life sciences, and fromaerospace to the creative industries,international companies use thisenvironment to develop marketleadingproducts and services.Innovation performanceInternational benchmarkingstudies confirm the strength of ourinnovation environment. We are thetop-rated major world economy inthe Global Innovation Index. 1 Thisindex highlights particular strengthsin our higher education sector, theease with which firms can accesscredit, the proportion of knowledgeintensiveemployment anduniversity-business collaboration.The level of investment in UK-basedresearch and development (R&D) byforeign-owned companies shows justhow competitive our offer is.In 2011 the UK attracted almostUS$7 billion of overseas-financedR&D. This is:• The same as Canada, Finland,Japan, China and Russia combined.• More than either France orGermany (US$4 billion each).• Just under half that of the USA. 251%298Global Innovation Index2014 – top five andselected rankings1 Switzerland2 UK3 Sweden4 Finland5 Netherlands6 USA7 Singapore8 Denmark11 Ireland13 Germany22 France27 Spain31 ItalySource: Cornell University/INSEAD/WIPO“The R&D landscapein the UK is good andgetting stronger. Wehave great linkages withR&D institutions andnetworks.”- Airbus, world leadingcommercial aircraftmanufacturerIn 2011 and 2012 just over half of businessR&D expenditure in the UK was by foreignownedbusinesses 3Investments in UK-based R&D made byinternational companies in 2012/13 – thehighest ever annual total 450%40%30%20%10%0%1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012Case studyUniversity of Liverpooland UnileverIn a £33 million partnership,the University of Liverpooland Unilever are developinga state-of-the-art materialschemistry research hub withopen-access facilities. Thehub will accelerate researchand reduce new productdiscovery times in sectorssuch as sustainable energy,pharmaceutical and paintand coatings.The Research Councils UK’sonline gateway to publiclyfunded research enables youto search for and analyseinformation on the latestinnovative research in the UK(http://gtr.rcuk.ac.uk/).Access to a world-classacademic and researchenvironment…Our science and research institutionsgenerate the knowledge that drivesinnovation, using talent from all overthe world.• The UK has over 170 universitiesand institutes of higher educationcarrying out different combinationsof teaching and research.• Our universities include some of thevery best in the world – four of thetop six according to the QS WorldUniversities Rankings. 5You can benefit from the UK’suniversity expertise through accessto leading scientists, designers andnext generation technologies. In 2012-13 UK universities earned nearly £3.6billion from services to business andothers, including the commercialisationof new technology. 6 The WorldEconomic Forum rate the collaborationbetween universities and businessin the UK as the most effective ofEurope’s major economies. 7… and a labour force gearedup for R&DThe UK has 250,000 active researchersworking either in higher educationor business. 8 Science has becomeincreasingly important across all sectorsof our economy; 5.8 million people workin science-based roles, one in five ofthe labour force. This is projected toincrease to 7.1 million people by 2030. 9We are second only to the USA amongOECD countries for the share of thelabour force working in R&D, includingdesign, software and database activitiesand building organisational knowledge. 10Our influence in the research world isdisproportionate to our size. With lessthan one percent of the global population,the UK accounts for:• 6.4 percent of global journal articles.• 11.6 percent of citations.• 15.9 percent of the world’s mosthighly cited articles.Our research productivity is the highestand rising among top research nationsboth in terms of publications andcitations per unit of spend. 11

46 Invest in the UK: your springboard for global growthInvest in the UK: your springboard for global growth47Our Catapult Centres• High Value Manufacturing• Cell Therapy• Offshore Renewable Energy• Satellite Applications• Connected Digital Economy• Future Cities• Transport SystemsOpening in 2015• Energy Systems• Precision MedicineThe quality infrastructureThe UK is a world leader in the scientific measurementand standards that underpin innovation and technologydevelopment. The British Standards Institution (BSI) is themarket leading global standards body. Conforming to itsstandards can improve market access, reduce costs and riskand give you that extra competitive edge.The National Physical Laboratory (NPL) is a centre of excellencein developing and applying the most accurate measurementstandards available. NPL works directly with over 2,400companies every year, bringing more than £630 million offinancial benefits to business through measurement innovation.The eight great technologiesCase studyBSI influenceBSI operates around the world toencourage the use of British andEuropean standards. In December 2013the UK and China signed an agreementto recognise each other’s standards – thefirst agreement of its type entered into bya Chinese standards authority.Helping you turnideas into productsThe Technology Strategy Board(TSB) is the UK’s innovation agencyand our main way of supportingbusiness-led technology innovation.TSB can help you to:• Bring products and servicesmore quickly to market.• Access R&D facilities.• Connect with research orbusiness partners.• Access funding throughcompetitions to reduce the riskfrom innovation projects.TSB’s network of Catapult Centres helpbusinesses access advice and cuttingedgefacilities – allowing you to takeTax incentivesDon’t let concerns about the cost and riskof R&D threaten the commercialisationof your innovations. Our tax incentivesencourage innovation in businessesof every size, from start-ups to globalenterprises. You can find out more aboutthese incentives on page 21.Protecting yourintellectual propertyThe UK Intellectual Property Office(IPO) helps businesses, innovatorsand entrepreneurs understand howintellectual property (IP) can createvalue from their ideas, turninginspiration into sustainable businessadvantage of equipment and expertisethat might otherwise be out of reach.Our two national science and innovationcampuses (Harwell Oxford and Sci-TechDaresbury) are world-leading centresfor science, technology and innovation.They are home to a large and diverserange of science and technology-basedorganisations, including large-scaleresearch organisations and innovativecommercial companies and start-ups.They also give UK-based researchersand businesses access to leading-edgetechnology facilities that support allscientific disciplines.You can also get support for R&Dactivity at a range of other facilitiesacross the UK.success. In addition to granting patents,registering trade marks and designs, theIPO can help you to use, manage andenforce your IP to achieve its full potential.We are ranked first in a comparison of36 country IP systems that assessescost, speed, quality of judges/tribunals,quality of advice and the fairness andpredictability of decisions. 12International innovators clearly trustour intellectual property system. Theyown 41.5 percent of patents in the UK,compared to 17.4 percent in Germany,12.6 percent in the USA and 2.4 percentin Japan. 13 1 UK• More than 100 science parks give over3,100 companies access to leadingedgetechnology and research skills ata nearby university or research centre.• A network of over 300 businessincubators supports over 12,000high-growth technology businesses insectors such as biomedical, IT and thecreative industries.• Clusters of businesses fromsimilar industry sectors exist ascentres of excellence and innovationacross the UK.• University Enterprise Zonescreate premises for early-stage hightechcompanies to aid collaborationwith universities.Global IntellectualProperty Index 20132 Germany3 Netherlands4 Sweden5 Australia6 New Zealand7 Switzerland8 France9 Austria10 USA11 Canada12 Ireland12 Singapore14 Spain21 ItalyThe UK excels in many important areas ofscience and innovation. We invest around£6 billion through our research councilsand universities, sustaining a diversity offunding approaches, fostering internationalcollaborations and providing access to the bestfacilities and infrastructure. The TechnologyStrategy Board also offers significant support,including the network of Catapult Centres thatare helping companies commercialise newtechnology-based products and services.Through our industrial strategy (see page 49) we aresupporting the development and commercialisation of alltechnologies with potential to create growth. We have aparticular focus on ‘eight great technologies’ - big, generalpurpose technologies with wide-ranging applicationsstretching beyond any single industrial sector. They arealso areas where the UK is, or has the potential to be,world-leading with the right investment and collaborationbetween researchers, industry and government.Our investment is focused on commercialising these eightgreat technologies at new, leading edge R&D facilities. Weare also working with partners on all the building blocksfor successful commercialisation, including regulation,financing and access to skills.123Big dataThe next generation of scientific discovery andinnovation will be driven by analysing massive andmixed data sets. There are big rewards for the leadersin this field - the global market for big data will growfrom US$10 billion to reach US$50 billion by 2017. 14We have one of the largest ICT markets in Europe,with well-established cloud computing and data centresectors. We see big data opportunities in areas suchas health, education, environment and energy, lifesciences, finance, government and entertainment.SatellitesThe ability to harness powerful satellite locationand imaging data creates diverse commercialopportunities. Our space sector has grown by almostten percent a year over the last decade, and ourtarget is to make it a £40 billion industry by 2030. Ourstrengths include telecommunications, small satellites,satellite propulsion and space applications.Robotics andautonomous systemsOver the next 20 years robots and autonomoussystems will revolutionise our economy and society.The global market for industrial robotics is currentlyworth over US$25 billion and is forecast to reachUS$37 billion by 2018. 15 The market for professionalservice robots will increase from US$3.4 billion toUS$17.1 billion by 2016. 16 Our strengths in softwareprogramming, data handling and electronics make theUK an ideal business and research environment forthis field. Strong market opportunities lie in developingrobotic applications for sectors as diverse as defence,healthcare, manufacturing, agriculture, transport,entertainment and education.

48 Invest in the UK: your springboard for global growthInvest in the UK: your springboard for global growth494567Synthetic biology8 Energy storageSynthetic biology - the redesign and engineeringof biological systems and processes for new uses –has wide-ranging applications in sectors includinghealthcare, pharmaceuticals, chemicals, energy,environment, renewables, materials, food andagriculture. We are investing to take a leading shareof a global market that is forecast to increase fromUS$2.1 billion in 2012 to over US$16.7 billion by 2018. 17We have a thriving research base – only the USApublishes more scientific papers in this sector.Regenerative medicineAn increasing range of medical conditions aretreatable by regenerative medicine – healing byreplacing or restoring human cells, tissues ororgans. We plan to take full advantage of theglobal growth in this sector, forecast to reachUS$35 billion by 2019 18 - 35 times higher than2012. Our ability to turn ideas into products isenhanced by a large clinical trials infrastructure,strong government research funding and a wellestablishedregulatory framework. UK-basedbiotechnology companies have the highest numberof drugs in clinical development in Europe. 19Agri-scienceWe have a long history of innovation in the foodand drink sector – over 8,500 new food and drinkproducts are created in the UK each year, driven byour strong research base in agriculture, bioscienceand food technologies. 20 Our research prioritiesinclude developing technologies to:• Improve the quality, sustainability, resilience andyield-led profitability of crops and farm animals.• Improve the efficiency of agricultural practices.• Manage the interactions between soil, water andcrop/animal processes.• Reduce the impact of weeds, pests and diseases.Advanced materialsAdvanced materials technology has applications inevery industrial sector. It includes the technologyto build material from the atom up, designed withcharacteristics not found naturally. We are buildingon particular strengths in composites, graphene,nanotechnology and additive layer manufacturing(3D printing). Our composites sector, for example,is forecast to grow by eight percent a year to reach£20 billion by 2020. 21Our commitment to producing 15 percent of energyfrom renewable sources by 2020 creates majoropportunities for energy storage technologies.Innovation in this sector could create £12 billion of newbusiness revenue in the UK. 22 We are strong in areassuch as ‘mobile’, ‘small scale’ and ‘grid-scale’ energystorage technology solutions. These technologiescan be applied to many sectors including automotive,aerospace, infrastructure, renewables, portablecomputing, medical, leisure and defence.UKTI InnovationGatewayThe UK has everything you needfor successful, commercialisedinnovation.With so many potential places andpartners to help you develop marketleadingproducts and services,UKTI’s Innovation Gateway can helpby introducing selected investmentand R&D opportunities in scienceand innovation to large internationalfunds and corporates. You can findmore information about the UKTIInnovation Gateway on page 55.Sources:1. Cornell University, INSEAD & World Intellectual Property Organisation 2013.Global Innovation Index 20132. OECD Main Science & Technology Indicators (2013/2). Purchasing power parity dollars at 2005 prices3. ONS 2013. Business enterprise research and development, 20124. UKTI 20135. QS Quacquarelli Symonds Limited 2014. QS World University Rankings 20136. Analysis by HEFCE of the 2012-11 Higher Education – Business and Community Interaction (HE-BCI) survey7. World Economic Forum 2013. Global Competitiveness Report 2013-148. OECD MSTI (2013/2) Researcher employment measured in full-time equivalent9. Science Council 2011. The Current and Future UK Science Workforce by Trends Business Research10. OECD 2013. STI Scoreboard11. Elsevier BV 2013. International Comparative Performance of the UK Research Base12. TaylorWessing 2013. Global Intellectual Property Index13. OECD 2014. International co-operation in patents: foreign ownership of domestic inventions14. Frost and Sullivan 2012. Big Data: The 9 Dimensional Dossier on Revolutionizing Data Management15. TechSci Research 2014. Global Industrial Robotics Market Forecast & Opportunities, 201816. International Federation of Robotics. World Robotics 2013 Service robots17. Transparency Market Research 2013. Synthetic Biology Market, Global Industry Analysis, Size, Growth, Shareand Forecast, 2012 – 201818. TriMark Publications 2013. Regenerative Medicine Markets.19. Ernst & Young 2013. Beyond Borders – biotechnology industry report 201320. Food and Drink Federation 2011. Business Confidence Survey published December 201121. Ernst & Young scoping study undertaken for UKTI/BIS22. Low Carbon Coordination Innovation Group 2012. Technology Innovation Needs Assessment –Heat Summary ReportIndustrial Strategyand CapabilityAs global competition intensifies we are focused on economic growth as the route to enhance ourstatus as the most attractive destination for Foreign Direct Investment (FDI) in Europe. Our offer toyou as an investor is based on three commitments.• We create market opportunities – by investing in highgrowthtechnologies and markets we provide the conditionsfor you to thrive in sectors that will be the engines oftomorrow’s economy.• We make it easy to do business - low taxes, minimumregulation and free and efficient markets create a probusinessenvironment that helps you start your businessquickly and expand on the global stage.• We provide a rich and diverse ecosystem - leadinguniversities, a dynamic research base, market maturityand top talent drawn from Europe’s 500 million populationcombine to make the UK the number one destination for anyhigh value, technology-driven investment.Our strategy has five main strands:}}Skills: We are giving employers more direct controlover how training funding is spent so they can accessthe skills they need. More information on accessingskilled labour can be found on page 13.}}Technologies: We are supporting the development andcommercialisation of technologies in which the UK canlead the world. We have a particular focus on ‘eightgreat technologies’ with wide ranging potential andactual industrial applications and where our advancedresearch expertise gives us the edge. See page 47.}}Access to finance: We are removing barriers to thesupply of business finance by creating a new businessbank, helping smaller businesses invest to succeed andexpand. See page 27.}}Procurement: We are giving as much advance warningas possible about our plans to buy goods and servicesand seek investment in infrastructure projects. Thisgives you more confidence to plan ahead and invest inthe resources needed to win these contracts. We arealso developing more robust supply chains. You canfind out more about our approach to procurement onpage 33.}}Industry sector partnerships: We are supportingall sectors of the economy to become morecompetitive, innovative and export-focused. Intensivework is underway in 11 sectors where long-termpartnership between business and government isparticularly beneficial.Businesses are seen as partners in the UK, and this isreflected in our industrial strategy - a long-term, whole-ofgovernmentapproach to support economic growth. Thisstrategy gives you the confidence to invest for the long termbased on the benefits of joining an economy that creates moreopportunities, more jobs and a competitive edge on the worldstage. Government and business have together allocated morethan £2 billion to industrial strategy objectives over ten years,a clear indicator of commitment to the success of UK-basedbusiness in a period of fiscal constraint.Industry sector partnershipsThe 11 sector partnership strategies tell you much about theadvantages of investing in the UK. They demonstrate thescale of the investment in the skills, research and technologypushing UK-based business to the front of these markets. Theyalso set out how your business can benefit from our concertedefforts to help UK companies export their goods and services.All the strategies are business-led. Each sector strategyis overseen by a council chaired jointly by governmentand industry, and five of the sectors have industry-ledorganisations steering government activity.The eleven sector partnership strategies:AerospaceThere is a predicted global need for US$4.4 trillionworth of new passenger aircraft and freightersbetween now and 2032. 1 The UK has the secondlargest aerospace industry in the world.Supported by the Aerospace Growth Partnership,you can benefit from:• A joint £2 billion funding commitment betweengovernment and industry.• A new Aerospace Technology Institute to advancethe development of faster, quieter, greener planes.• Funding for 500 Masters degrees in AerospaceEngineering.

50 Invest in the UK: your springboard for global growthInvest in the UK: your springboard for global growth51ConstructionThere are big opportunities to capitalise on globaldemand for our expertise in architecture, designand engineering - the UK is the second largest netexporter of construction equipment in the world,for example. 2 We are making our constructionindustry more efficient, sustainable and competitive.We are also:• Extending trade credit schemes to improve accessto finance.• Publishing news of future construction projects tohelp companies plan and invest.Agricultural technologyClimate change and the growing global populationcreates major opportunities for our agriculturaltechnology sector. The global agriculturaltechnology sector is currently worth US$400 billion 3and projected to be worth US$1 trillion by 2030. 4Supported by the Agri-Tech Leadership Council, youcan benefit from:• Our research expertise – the UK is ranked as secondonly to the USA for plant and veterinary sciences.• Support from the industry-led Agri-TechOrganisation to help you invest, expand yourbusiness and export.• A £70 million Agri-Tech Catalyst supportingindustry-led ‘proof of concept’ development ofnear-market innovations. In the first phaseannounced in March 2014, 11 projects benefitedfrom £2.8 million from Government alongside £1.4million from industry.Information economyDigital technology is revolutionising the way theworld does business. Being left behind is not anoption. We are helping UK-based companies developand adopt new technologies to make them moreefficient and to drive faster economic growth.Action includes:• Supporting 1.6 million businesses to trade online.• Establishing the world’s first test facility for5G mobile technology.• Promoting online learning platforms for usein schools.AutomotiveOur automotive sector is thriving. It produced more than1.5 million cars in 2013, over 80 percent of which wereexported. Industry analysts predict that output will reachrecord levels of around two million units by 2017. 5 Ourpartnership with the automotive industry means you canbenefit from:• The creation of an Advanced Propulsion Centrewith an initial £75 million to develop next generationtechnologies.• Plans to create 7,600 apprenticeships and recruit 1,700university graduates over the next five years.• Support from the Automotive Organisation to help youinvest, grow and export. The organisation is led by JoeGreenwell (formerly Chair of Ford UK).International educationThe education sector is still in the early stages ofglobalisation and opportunities are growing. The appealof our world-class universities to international studentsis a big advantage. Areas for growth include educationtechnology and transnational education, where a highereducation institution in one country offers programmesof study in another. We have set up UKTI Education tohelp UK-based businesses win high-value opportunitiesin overseas markets.Life sciencesSeventeen of the 20 biggest pharmaceutical companiesin the world have research and development (R&D),manufacturing and sales sites in the UK. 6 Our lifesciences strategy is creating an unrivalled ecosystemthat brings together businesses, researchers, cliniciansand patients to translate discovery into clinical use.This ecosystem supports pioneers to bring innovationto market earlier and more easily, making the UK thelocation of choice for investment. Key actions include:• Major investment to support the commercialisation ofpromising research.• A new scheme to provide tax relief for smaller, earlystagecompanies.• An above the line R&D tax credit to encourage largescaleinvestment in innovation.• A new industry-led Life Science Organisationwhich can support your investment, growth andexport activity.Oil and gasOur world-class offshore oil and gas industrygives us a major natural advantage. The sector isBritain’s largest industrial investor (£11.5 billionin 2012) 7 and employs 450,000 people. 8 We areworking in partnership with industry to maximisethe value from these resources and supportinnovation, skills and growth in the supply chain.Steps taken to achieve this include:• Establishing a National Centre of Excellence foroil and gas technology.• Funding for an ‘extreme’ engineering centre thatwill develop technology to withstand the world’stoughest environments.NuclearThe UK was the first country to develop andoperate nuclear power stations successfully,and we are now at the forefront of the renewedglobal interest in this energy source. We areworking with industry to exploit the opportunitiesarising from the anticipated global investmentof £930 billion in new reactors in the next twodecades. 9 It is also forecast that £250 billionwill be spent on decommissioning reactors over thesame period. 10 Our investment includes:• Funding for the National Nuclear Users Facility tosupport research into nuclear technology.• Joining a test reactor programme in France todevelop advanced fuels.Offshore WindThe UK is the global leader in offshore wind power,with more capacity installed than the rest of theworld combined. We have the infrastructure andthe natural environment to maintain this position,with the fastest wind speeds in Europe and a largenumber of suitable port sites for supply chainmanufacturing and operation and maintenancefacilities. The industry has the potential to create30,000 jobs by 2030. Steps to achieve this include:• Funding to help UK-based companies takeadvantage of supply chain opportunities.• A new Offshore Renewable Catapult Centre tohelp take innovative products from developmentto market.• Dedicated support for investors.Professional and business servicesUK exports of professional business services (includinglaw, accountancy, architecture and advertising) havedoubled in the last decade 11 and are second only to theUSA in terms of volume sold to OECD countries. 12We are increasing our exports to emerging marketsand boosting the number of people qualified to work inthe sector by:• Recruiting 10,000 Higher Apprenticeships in areaslike law and accountancy by 2018.• Using trade delegations and a network of seniorbusiness envoys to promote these services overseas.Our industrial strategy will benefitall UK-based businesses byproviding long-term solutions tothe issues that have the greatestimpact on economic growth. Youcan invest in the UK safe in theknowledge that our businessenvironment is geared up to helpyou thrive and expand.UKTI is connected to, andinfluences, every aspect of thewhole of Government approachto the industrial strategy.This means we can make yourinvestment work by takingthe same long-term strategicapproach to your business needs.Find out how we can work togetheron page 52.Sources:1. Airbus 2013. Global Market Forecast 2013-20322. Construction Equipment Association 2009. The UK Construction Equipment Industry3. BIS analysis and Fuglie et al 2011. Research investments and Market Structure in the FoodProcessing, Agricultural Input, and Biofuel industries worldwide4. OECD 2009, The Bioeconomy to 2030: Designing a Policy Agenda5. SMMT 2014. UK car manufacturing hits six-year high (online)6. HM Government 2012. Strength and Opportunity – annual update December 20127. DECC. Income from and expenditure on UKCS exploration, development and operating activities:annually 1970-20128. Oil and Gas UK 2013. Economic Report 20139. World Nuclear Association 2012. The World Nuclear Supply Chain: Outlook 203010. Sherry, A.H. et al, Technology Strategy Board 2010. A Review of the UK’s Nuclear R&D Capability11. Office for National Statistics12. OECD Trade in Services data

52 Invest in the UK: your springboard for global growthInvest in the UK: your springboard for global growth53UK Trade & InvestmentWhether you are a start-up, a medium-sized or family business, a corporate or an institutional investor,UK Trade and Investment (UKTI) supports the realisation of your international business ambitions.UKTI offers flexible support packages for every aspect of your investment. Our servicedoesn’t stop once you are based in the UK – it continues as your business expandsinternationally. We have helped thousands of businesses locate and expand in the UK.We listen to their feedback to help strengthen and improve our services.Our services to international investors in the UK are free of charge and commercial-in-confidence. Youcan contact our Investment Services Team to discuss your plans via email at enquiries@ukti-invest.comor by telephone +44(0)20 7333 5442. Investment staff at a British embassy, high commissionor trade office can also put you in touch with the Investment Services Team.Investment servicesOur tailored service supports you with every aspect of starting and expanding a business.Some of our most frequently provided services are set out below.?Not sure which countryis best for your business?Comparing the benefits of locatingin different countries is complicated.It is our job to explain the businessenvironment in competitor countries.We provide the detailed factualinformation and market insights thatlet you draw meaningful conclusionsabout the UK’s competitiveness.No. 1We base our services aroundyou. UKTI may be big, butyou get our full attention. Adedicated account manager willact as a single point of contactand the gateway to a largenetwork of specialist advisersand policy influencers.We understand your businesssector. Whatever industry youwork in, we have people whohave worked in your industryand understand it. Our sectorspecialists know the marketopportunities and have thecontacts to help you succeed.Already decided to bringyour business to the UK?We help you set up business quicklyand efficiently, saving valuable timeand money by guiding you throughessential steps such as choosingthe right location, finding premises,recruiting staff and connecting withthe value chain. We have specialistscovering all the industry sectors,as well as key issues such as visas,taxation, skills, planning permissionand financial analysis.We know the UK businessenvironment inside out. We havespecialists on every aspect of thepolicies and procedures that affectbusiness – such as tax, planningpermission, employment law, visasand grant opportunities - giving youaccess to straightforward advicewhen you need it.We have a big, influential network.With UKTI offices operating in 107markets around the world you geteasy access to our pool of expertiseboth in your home market and whenbased in the UK. UKTI advisers andaccount managers throughoutthe UK offer expertise in everyAlready established here,but looking to expand yourbusiness?We can help you develop thenecessary relationships to expandyour business in the UK and exportinto European and global markets. Thiscould include: connecting you withinnovation support for new productsand services; using our overseasnetwork to increase your exports;or helping you access the finance tosupport your expansion plans.The UK is the number one destination for international business in Europe.UKTI makes your investment work because…aspect of setting up and expandinga business. Through our embassies,high commissions and trade andinvestment offices, we have dedicatedrepresentation at the major economicorganisations, including the EU, WorldBank, IMF and United Nations.Your long-term successmatters to us. It’s not just aboutbringing you here. Our service isbased on building an understandingof your long-term strategicobjectives and helping you achievethem. Once established you canbenefit from all the services andsupport that UK businesses get tosucceed in overseas markets.}}Accessing market opportunities.We can help you assess and quantifymarket opportunities in the UK andtarget the right channels for growth.}}Relationship building. We canintroduce you to the people andorganisations that can take yourbusiness forward, including industryleaders, service suppliers and centresof research and development (R&D)excellence.}}Setting up in the UK. We can helpyou to register your company andadvise on the type of structure thatsuits your needs.}}Finding/expanding your UK base.With access to detailed regionaland local information we can helpyou identify the right location foryour business, and even organisevisits so you can compare differentoptions. If you are thinking of buildingnew premises we can also advise onplanning procedures.}}Tax support. We will explain how ourtax system affects your business,and how to benefit from the variousincentives and allowances on offer. Ourtax specialists can also help you comparethe tax regimes of different countries.}}Visa applications. We will explainhow the UK visa system works, andprovide information and guidance onthe different visas available, whetheryou are an investor, entrepreneur,business visitor or company employee.Our visa specialist can also help you tounderstand how to bring skilled workersto the UK from overseas.Creating value value from from start start ups to ups corporates to corporatesUKTI develops bespoke programmes in support of each segment of theinward UKTI investor develops value bespoke chain programmes in support of each segmentof the inward investor value chain.High Growth PotentialUKTI ServicesSirius ProgrammeGlobal Entrepreneurs ProgrammeAccess to networks and theentrepreneur ecosystemInternational trade (export) adviceUK Product offerSeed Enterprise Investment SchemeEnterprise Investment SchemeR&D Tax Credit /Corporate Tax ReliefCatapult CentresMedium and LargeUKTI ServicesRelationship managementInternational trade (export) adviceSector Trade & InvestmentOrganisationsAccess to industry networks andsector ecosystemsUK Product offerEnterprise Investment SchemeR&D Tax Credit/Corporate Tax ReliefEnterprise ZonesCatapult CentresInnovation Gateway}}Recruiting skilled staff. We willadvise you on the most effectiverecruitment routes, using ourknowledge of recruitment agenciesand contacts with top universities.We will also direct you to governmentprogrammes and funding thatsupport workforce training andcan help maintain your long-termcompetitiveness.}}Accessing finance. We will guideyou through the many options forraising finance in the UK, includingbanks, business angels (high networth individuals who provide capitalfor businesses), private equity andventure capital and stock exchangelisting.Institutional InvestorsUKTI ServicesRelationship managementRegeneration InvestmentOrganisation/ online platformInfrastructure and regenerationpitch booksInfrastructure and regenerationpipelinesUK Product offerRegeneration Investment PlanUK Infrastructure GuaranteeEnterprise ZonesNational Infrastructure PlanInnovation Gateway

54 Invest in the UK: your springboard for global growthInvest in the UK: your springboard for global growth55UKTI: a platform for growthMarket opportunity and sectorspecialist support• UKTI can support your expansion into the UKfrom 51 markets• Market opportunity assessment• Supply chain and market introductions• Connection to service providersExport development• Access our UKTI global export expansionsupport in 107 markets• Market opportunity assessment• Tradeshow access• Export communications review• Overseas market introduction service• Market visit support• Export Finance GuaranteePeople and accessing Talent• Visa guidance• Locating workforce and accessing skills• Training and development guidance• Employment regulations guidance• Location identification and development• Site location supportPlanning Permission Process Guidance• Relocation support• Free access to serviced office whilst youestablish your operations*• Introduction to local government andbusiness authoritiesLocation identification anddevelopment• Site location support• Planning permission process guidance• Relocation support• Free access to serviced office whilst youestablish your operations*• Introduction to local government and businessauthorities* Conditions apply. Not available in all areas.For all new and existing UK-based businessesFinancial guidance• Sign post to grants• Taxation guidance and interpretation• Network to intermediaries• Financial modelling supportUK’s Innovation Gateway• Access to an exclusive pool of commercial UKinnovation projects and companies• Navigate UK research councils and universitiesState aid funding guidance•Signposting to state aid funding options availableincluding access to finance for start ups and SMEs• Research, development and innovation.• Training• Di minimis aid• Business expansion into assisted areas• Environmental protection and remediationSpecialist servicesand programmesWe offer specific types of support for thebiggest investment opportunities, or wheretargeted action helps to remove barriers tonew business investment.Industry-led sector organisationsAs part of our partnership approach to our industrialstrategy we have set up industry-led organisations for fivesectors: agricultural technology, automotive, financial andprofessional services, life science and offshore wind. Theseorganisations are led by figures with a wealth of industryexperience, and can provide hands-on support to help youinvest, expand your business in the UK and export.The infrastructure and regeneration pipelinesWe can direct you to credible, UK industry-backeddevelopment infrastructure and regenerationopportunities throughout the country. To help investorsplan ahead we publish a ‘pipeline’ of current and futureinvestment opportunities in our regeneration andinfrastructure sectors - a schedule that sets out the valueand development stages of the various projects.The regeneration andinfrastructure pipelineRegenerationThe vast majority of large regeneration schemes areprivate-sector led, with financial returns generatedthrough new residential, commercial, retail or officedevelopments. We encourage investment by pushingdecision-making to the appropriate local level,providing financial incentives, removing barriers todevelopment and investing in the infrastructure vitalto regeneration projects.Key investment opportunities in the pipeline include:• Titanic Quarter, Belfast – £1 billion mixed usewaterfront project.• Paramount London, Ebbsfleet - £1.9 billionleisure resort with studio-based theme park.• Clyde Gateway, Glasgow - £5.9 billioncommercial, residential and leisure development.• Circuit of Wales – £300 million automotivecentredproject including internationalmotorsports track.InfrastructureUK infrastructure (including energy, water andtransport projects) has proved an attractivemarket for global investors, with foreign ownershipstanding at about 40 percent. There are hugeopportunities in the pipeline, supported by a stableregulatory environment and a range of marketsupport mechanisms. We have published plans tocomplete projects and programmes worth over£375 billion over the next 20 years.Key investment opportunities in the pipeline include:• Offshore wind - a potential investmentprogramme of up to £75 billion.• Nuclear – up to eight individual sites with acapital value per project of £8-9 billion.• High Speed 2 – a high speed rail line fromLondon to the North of England with a potentialinvestment value estimated at £32 billion.• Airports – upgrades at Heathrow and Gatwickworth £5.5 billion and £900 million respectively,as well as Manchester International Airport andBirmingham.Manufacturing Advisory Service –bringing production back to the UKOur Manufacturing Advisory Service (MAS) is opening upnew business opportunities. Instead of outsourcing workoverseas, companies are bringing production and serviceprovision back to the UK. Manufacturing, textiles, softwareproduction and call centre work are just some examples ofthe activity attracted by our healthy and stable economyand strong business environment. If you are looking tobring supply chain activity to the UK, or to take advantageof contracts in the UK created by reshoring, MAS is yourone-stop service.Considering bringing your supply chain activityto the UK? MAS can:• Help you develop the business case for reshoring.• Match you with UK-based suppliers who meetyour needs.Based in the UK and ready to take advantage of supplychain contracts created by reshoring? MAS can:• Evaluate your capability to meet contractors’ needs.• Help you overcome barriers to exploiting reshoringopportunities.• Tell you about appropriate reshoring opportunities.A dedicated MAS adviser will co-ordinate the support youneed, when you need it. Advice and expertise is availablein areas such as new market opportunities, product andprocess innovation, technology and skills developmentand financing options.The UK - home of innovative start-upsIf you are an entrepreneur leading an early-stagetechnology company overseas, we have a great offer foryou. Come and set up your global headquarters in theUK. In return, UKTI’s Global Entrepreneur Programme(GEP) will help you accelerate your products and servicesinto global markets. This support is provided by a groupof internationally successful entrepreneurs – ‘dealmakers’with expertise and a network of contacts to make thingshappen. Our GEP companies have raised approximately£1 billion of venture capital since the programme beganeight years ago.The UK also welcomes the world’s most talentedgraduate entrepreneurs. Under UKTI’s pioneering SiriusProgramme, students and recent graduates with anearly-stage business idea can apply to relocate to theUK and get support to fast-track their business fromidea to reality. The package includes funding, a placeon a programme to speed up commercialisation andmentoring support.

56 Invest in the UK: your springboard for global growthCase studyCarbon Clean SolutionsOriginally based in Mumbai,Carbon Clean Solutions usedthe GEP to set up the strategicheadquarters for its carboncapture technology business inthe UK. The support receivedresulted in the companybeing awarded a £3.6 milliongovernment innovation grant.The funding has enabled themto work with two universitiesand an engineering firm tocommercialise their technology.Export servicesOnce established in the UK we canhelp you make the most of your exportopportunities. Whatever the size ofyour company, our trade advisers canhelp you sell successfully to overseasmarkets for the first time, or expandinto new markets.Services you can access to boost yourexports include:• Bespoke market and sector research.• The latest intelligence on businessopportunities, including tailoredemail alerts from the thousands ofleads we identify every month.• A ‘High Value OpportunitiesProgramme’ to help you win largecontracts.• Advice and support from ourinternational trade advisers.• Opportunities to take part inoverseas trade missions, visitsand trade shows.You can also access support fromUK Export Finance, our export creditagency. UK Export Finance can provideguarantees and insurance policies inchallenging or high-growth marketswhere private insurers and banks lackthe capacity to take on the risks.UK Export Finance works closely withexporters, banks, buyers and projectsponsors to support exports worldwide.They can:• Insure exporters against nonpaymentby overseas buyerswhere private sector insurance isunavailable.• Share credit risks with banksto help exporters raise tenderand contract bonds, workingcapital finance and securingconfirmations of letters ofcredit from overseas banks.• Support loans to overseas buyersto purchase capital/semi-capitalgoods and services from exporters.You can discuss any eligibilityrequirements for these services directlywith UK Export Finance: https://www.gov.uk/government/publications/uk-regional-export-finance-advisors.Alternatively, UKTI internationaltrade advisers in the UK, or trade andinvestment staff at your nearest Britishembassy, high commission or tradeoffice can put you in touch.With a 10% corporate tax rate onpatented inventions, the UK is theperfect location to develop new ideasand drive your business.Advice on grants and other incentivesUK-based businesses can access awide range of grant funding and othersupport from different organisations,often depending on the nature andlocation of their investment. We can helpyou understand your eligibility for thissupport and target your applicationseffectively. Three well-establishedexamples of grants and incentivesinclude:Regional Growth Fund. Invest in certainareas of England and you could beeligible for a grant from the RegionalGrowth Fund. The fund’s aim is to createjobs, re-balancing the economy in areasthat have relied on high levels of publicsector employment. It’s a competitiveapplication process, with the level ofgrant available dependent on the size ofyour business, the investment locationand the number of jobs you create.Advanced Manufacturing SupplyChain Initiative (AMSCI). We set upAMSCI as a funding scheme to enhancethe global competitiveness of ouradvanced manufacturing supply chains.If you locate in the UK as a supplier tothe manufacturing industry you canapply for funding to support researchand development, skills training and thepurchase of capital equipment.The Manufacturing Advisory Service.If you’re bringing a manufacturingbusiness to the UK, the ManufacturingAdvisory Service (MAS) is ready to help.MAS has a team of specialist advisersto support you with business planning,innovation, manufacturing processesand supply chains.Contact UKTIWe are ready to makeyour UK investment work.You can contact ourInvestment Services Team todiscuss your plans via email atenquiries@ukti-invest.comor by telephone+44(0)20 7333 5442.Investment staff at a Britishembassy, high commission ortrade office can also put youin touch with the InvestmentServices Team.

Invest in the UK: your springboard for global growth1gov.uk/uktiUKTIUK Trade & Investment is the Government Department that helps UK-basedcompanies succeed in the global economy. We also help overseas companiesbring their high-quality investment to the UK’s dynamic economy, acknowledgedas Europe’s best place from which to succeed in global business.DisclaimerWhereas every effort has been made to ensure that the information inthis document is accurate, neither UK Trade & Investment nor its parentdepartments (the Department for Business, Innovation and Skills, and theForeign and Commonwealth Office) accept liability for any errors, omissions ormisleading statements, and no warranty is given or responsibility accepted as tothe standing of any individual, firm, company or other organisation mentioned.To find out more,scan this code withyour smartphonewww.gov.uk/ukti© Crown copyright 2014You may re-use this information free of charge in any format or medium, strictlyin accordance with the terms of the Open Government Licence.To view this licence, visit:www.nationalarchives.gov.uk/doc/open-government-licence or email:psi@nationalarchives.gsi.gov.uk. Where we have identified any third partycopyright information in the material that you wish to use, you will need toobtain permission from the copyright holder(s) concerned.Any enquiries regarding this material should be sent to us atenquiries@ukti.gsi.gov.uk or telephone +44 (0)20 7215 5000.This document is also available on our website at www.gov.uk/uktiProduction detailsThe paper in this document is made of 50 percent recycled waste pulp with50 percent pulp from well-managed forests. This is a combination of TotallyChlorine Free and Elemental Chlorine Free. The inks are vegetable oil-based andcontain resins from plants/trees, and the laminate on the cover is sustainable,compostable and can be recycled.Published August 2014by UK Trade & InvestmentURN UKTI/14/968Image Credits: Front cover: © Felix Mackel / Getty Images, Inside front cover: JustinLightley / Getty Images, p.7: © Hero Images / Getty Images, p.15: Tom Merton /Getty Images, p.19: David Lees / Getty Images, p.31: Blend Images/John Fedele /Getty Images, p. 41: AMV Photo / Getty Images, p. 46: Sturti / Getty Images