Invest_in_the_UK_-_your_springboard_for_global_growth
Invest_in_the_UK_-_your_springboard_for_global_growth
Invest_in_the_UK_-_your_springboard_for_global_growth
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
<strong>Invest</strong> <strong>in</strong> <strong>the</strong> <strong>UK</strong>: <strong>your</strong> spr<strong>in</strong>gboard <strong>for</strong> <strong>global</strong> <strong>growth</strong>1<strong>Invest</strong> <strong>in</strong> <strong>the</strong> <strong>UK</strong>:<strong>your</strong> spr<strong>in</strong>gboard <strong>for</strong><strong>global</strong> <strong>growth</strong>
<strong>Invest</strong> <strong>in</strong> <strong>the</strong> <strong>UK</strong>: <strong>your</strong> spr<strong>in</strong>gboard <strong>for</strong> <strong>global</strong> <strong>growth</strong><strong>Invest</strong> <strong>in</strong> <strong>the</strong> <strong>UK</strong>: <strong>your</strong> spr<strong>in</strong>gboard <strong>for</strong> <strong>global</strong> <strong>growth</strong>1The <strong>UK</strong> is <strong>the</strong> number-one dest<strong>in</strong>ation<strong>for</strong> <strong>for</strong>eign direct <strong>in</strong>vestment <strong>in</strong> Europe –second <strong>in</strong> <strong>the</strong> world only to <strong>the</strong> USA.A recent survey of <strong>in</strong>ternationalbus<strong>in</strong>ess leaders found <strong>in</strong>vestorconfidence <strong>in</strong> <strong>the</strong> <strong>UK</strong> is <strong>the</strong> strongest<strong>in</strong> Europe, 1 while <strong>the</strong> World Bankhas said it is easier to do bus<strong>in</strong>esshere than any o<strong>the</strong>r major economy<strong>in</strong> <strong>the</strong> cont<strong>in</strong>ent. Put simply, if youare an overseas bus<strong>in</strong>ess want<strong>in</strong>gto drive up <strong>your</strong> profitability and<strong>in</strong>crease <strong>your</strong> competitiveness,Brita<strong>in</strong> is <strong>the</strong> place to be. And <strong>for</strong> me<strong>the</strong>re are several big reasons why.First, we are committed to mak<strong>in</strong>g this<strong>the</strong> most open, welcom<strong>in</strong>g, bus<strong>in</strong>essfriendlycountry <strong>in</strong> <strong>the</strong> world. We’vealready cut our corporation tax to 21per cent – <strong>the</strong> lowest of <strong>the</strong> six biggestEU economies. Next year we will cutit to 20 per cent, mak<strong>in</strong>g it <strong>the</strong> lowestrate <strong>in</strong> <strong>the</strong> G7 and <strong>the</strong> G20. For thosedevelop<strong>in</strong>g <strong>in</strong>tellectual property here,we are lower<strong>in</strong>g corporation tax fur<strong>the</strong>r;to those <strong>in</strong>vest<strong>in</strong>g <strong>in</strong> research anddevelopment, we are giv<strong>in</strong>g tax relief.What’s more, we are <strong>the</strong> sixth biggestexporter <strong>in</strong> <strong>the</strong> world, we have maderecord <strong>in</strong>vestment <strong>in</strong> <strong>in</strong>frastructure,and our world-class supply cha<strong>in</strong>sare help<strong>in</strong>g small bus<strong>in</strong>esses export<strong>the</strong>ir products to big <strong>in</strong>ternationalcompanies – all of which says toForewordDavid Cameron, Prime M<strong>in</strong>isterF<strong>in</strong>d out more about what makes <strong>the</strong> <strong>UK</strong> <strong>the</strong> first choice <strong>for</strong> <strong>in</strong>vestment.<strong>in</strong>vestors around <strong>the</strong> world: ‘if youwant to expand <strong>your</strong> bus<strong>in</strong>esses<strong>in</strong>ternationally, this is <strong>the</strong> place to do it’.Second, we have an <strong>in</strong>creas<strong>in</strong>gly strongeconomy – one which <strong>the</strong> InternationalMonetary Fund says is set to be <strong>the</strong>fastest grow<strong>in</strong>g <strong>in</strong> <strong>the</strong> G7 2 and, by2030, <strong>the</strong> largest <strong>in</strong> Europe. We arework<strong>in</strong>g to a long-term economic planwhich is back<strong>in</strong>g bus<strong>in</strong>ess, creat<strong>in</strong>gjobs, reduc<strong>in</strong>g <strong>the</strong> deficit, boost<strong>in</strong>g<strong>in</strong>frastructure and deliver<strong>in</strong>g <strong>the</strong> skills<strong>for</strong> our young people that bus<strong>in</strong>essesneed. So <strong>in</strong>vestors can be confident <strong>in</strong>our cont<strong>in</strong>ued economic strength andstability – and <strong>the</strong>y can be a part ofthis great <strong>global</strong> success story too.Third, we have one of <strong>the</strong> world’slead<strong>in</strong>g f<strong>in</strong>ancial centres, not jus<strong>the</strong>lp<strong>in</strong>g to f<strong>in</strong>ance bus<strong>in</strong>ess expansionbut also enabl<strong>in</strong>g London to becomeEurope’s premier centre <strong>for</strong> Islamicf<strong>in</strong>ance and <strong>the</strong> Western hub <strong>for</strong>offshore Renm<strong>in</strong>bi trad<strong>in</strong>g.Fourth, we have a large, highlyskilledlabour <strong>for</strong>ce: more adults havecompleted higher education thananywhere else <strong>in</strong> <strong>in</strong> Western Europe. 3F<strong>in</strong>ally, we have <strong>UK</strong>TI – <strong>the</strong> <strong>UK</strong>Government’s award-w<strong>in</strong>n<strong>in</strong>g trade and<strong>in</strong>vestment agency. Last year, <strong>UK</strong>TI hada hand <strong>in</strong> more than 80 percent of <strong>the</strong><strong>in</strong>ward <strong>in</strong>vestment projects land<strong>in</strong>g <strong>in</strong><strong>the</strong> <strong>UK</strong>. And <strong>the</strong>ir service doesn’t stoponce you are established <strong>in</strong> <strong>the</strong> <strong>UK</strong>; itcont<strong>in</strong>ues as <strong>your</strong> bus<strong>in</strong>ess expands<strong>in</strong>ternationally, support<strong>in</strong>g <strong>for</strong>eign<strong>in</strong>vestors with <strong>the</strong> same range ofservices as any o<strong>the</strong>r <strong>UK</strong>-based company– <strong>in</strong>clud<strong>in</strong>g support to export around<strong>the</strong> world. There is more <strong>in</strong><strong>for</strong>mationabout how you can work with <strong>UK</strong>TI <strong>in</strong><strong>the</strong> f<strong>in</strong>al section of this brochure.So our message is clear: ifyou want to <strong>in</strong>vest, if youwant to expand, if you wantgreat <strong>in</strong>centives and aneconomy that’s go<strong>in</strong>g fromstrength to strength, <strong>the</strong>ncome to <strong>the</strong> <strong>UK</strong> – our dooris firmly open <strong>for</strong> bus<strong>in</strong>ess.Contact <strong>UK</strong>TIWe are ready to make <strong>your</strong> <strong>UK</strong><strong>in</strong>vestment work. You can contactour <strong>Invest</strong>ment Services Team todiscuss <strong>your</strong> plans by telephone+44(0)20 7333 5442 or emailat enquiries@ukti-<strong>in</strong>vest.com.<strong>Invest</strong>ment staff at a Britishembassy, high commission or tradeoffice can also put you <strong>in</strong> touchwith <strong>the</strong> <strong>Invest</strong>ment Services Team.ContentsGateway to <strong>the</strong> World 2Centre <strong>for</strong> Global Trad<strong>in</strong>g 4Magnet <strong>for</strong> Talent 6Hub of Innovation 8Talent 10Skills <strong>for</strong> <strong>the</strong> 21 st Century 13Labour Market 16Tax 20F<strong>in</strong>ance and Bank<strong>in</strong>g 25Property and Plann<strong>in</strong>g 28Ease of Do<strong>in</strong>g Bus<strong>in</strong>ess 32Infrastructure 36Transport 36Digital 39Utilities 42Innovation Ecosystem 44Industrial Strategy & Capability 49<strong>UK</strong> Trade & <strong>Invest</strong>ment 52Sources:1. A.T. Kearney 201 4. Foreign Direct <strong>Invest</strong>ment Confidence Index: Ready <strong>for</strong> Takeoff2. International Monetary Fund 2014. World Economic Outlook April 20143. OECD 2013. Education at a glance (data refers to 2011)
4 <strong>Invest</strong> <strong>in</strong> <strong>the</strong> <strong>UK</strong>: <strong>your</strong> spr<strong>in</strong>gboard <strong>for</strong> <strong>global</strong> <strong>growth</strong><strong>Invest</strong> <strong>in</strong> <strong>the</strong> <strong>UK</strong>: <strong>your</strong> spr<strong>in</strong>gboard <strong>for</strong> <strong>global</strong> <strong>growth</strong>5Centre <strong>for</strong> Global Trad<strong>in</strong>g-8 -5-5 -4+1+3 +4.5 +7<strong>Invest</strong> <strong>in</strong> <strong>the</strong> <strong>UK</strong> as <strong>the</strong> number one location <strong>for</strong> Europeanheadquarters and hold<strong>in</strong>g companies.LosAngelesTorontoNew YorkSãoPauloLondonParisDubai Mumbai Hong KongLow tax burdenOur low corporate taxes andcompetitive rules <strong>for</strong> tax<strong>in</strong>g <strong>the</strong> profitsof mult<strong>in</strong>ationals attract <strong>the</strong> biggest<strong>global</strong> enterprises to <strong>the</strong> <strong>UK</strong>. The <strong>UK</strong>’s 21percent corporation tax rate is already<strong>the</strong> lowest of <strong>the</strong> EU’s big five economies.And it’s com<strong>in</strong>g down fur<strong>the</strong>r - to 20percent <strong>in</strong> 2015, by far <strong>the</strong> lowest <strong>in</strong> <strong>the</strong>G7 and <strong>the</strong> jo<strong>in</strong>t lowest <strong>in</strong> <strong>the</strong> G20.Transparent, flexible company law andcorporate governanceIt’s fast and simple to set up a company <strong>in</strong> <strong>the</strong> <strong>UK</strong> and<strong>the</strong>re is flexibility to choose and shape <strong>the</strong> corporatestructure to suit <strong>your</strong> needs. The <strong>UK</strong> provides companiesand <strong>the</strong>ir <strong>in</strong>vestors with a framework of law and bestpractice giv<strong>in</strong>g <strong>the</strong> certa<strong>in</strong>ty needed to support <strong>in</strong>vestment,<strong>in</strong>novation and trade.Time and placeTwo of our natural advantages help you reach outacross <strong>the</strong> world. Positioned between East andWest, our location and time zone make it easyto work across Asian, European and Americanmarkets. We are also <strong>the</strong> home of English, <strong>the</strong>world’s ma<strong>in</strong> bus<strong>in</strong>ess language. 4London - bus<strong>in</strong>ess capital of EuropeOur capital hosts 40 percent of <strong>the</strong> Europeanheadquarters of <strong>the</strong> world’s top 250 companies. Itsnearest rival is Paris, with only 8 percent. London’sdom<strong>in</strong>ance is even greater <strong>for</strong> <strong>the</strong> non-Europeangiants among <strong>the</strong>se 250 companies – three out offive have chosen London as <strong>the</strong>ir base. 5The World Bank rates ourtax system as morebus<strong>in</strong>ess-friendly than anyo<strong>the</strong>r major world economy,both <strong>in</strong> terms of rates andadm<strong>in</strong>istrative burdens.Stock market strengthList<strong>in</strong>g <strong>in</strong> London allows you to tap <strong>in</strong>to one of <strong>the</strong> deepestpools of <strong>in</strong>ternational equity assets anywhere. As well asbe<strong>in</strong>g <strong>the</strong> fourth-largest stock exchange <strong>in</strong> <strong>the</strong> world, <strong>the</strong>London Stock Exchange is <strong>the</strong> most <strong>in</strong>ternational, withalmost 3,100 companies from over 70 countries. 1VSOnly New Yorkcan rival London<strong>for</strong> <strong>the</strong> title ofworld’s lead<strong>in</strong>gf<strong>in</strong>ancial centreGlobal f<strong>in</strong>ancial hubNo o<strong>the</strong>r European centre comes close to <strong>the</strong> size and expertise ofour f<strong>in</strong>ancial services sector, and only New York can rival London<strong>for</strong> <strong>the</strong> title of world’s lead<strong>in</strong>g f<strong>in</strong>ancial centre. Our banks’ assets are<strong>the</strong> fourth largest after Ch<strong>in</strong>a, <strong>the</strong> USA and Japan, and we are <strong>the</strong>largest centre <strong>for</strong> cross-border bank<strong>in</strong>g <strong>in</strong> <strong>the</strong> world.Lowest corporationtax <strong>in</strong> <strong>the</strong> EU and G72014 21%2015 20%Professional strengthWe are world leaders <strong>in</strong> professional and bus<strong>in</strong>essservices such as accountancy, law and audit – servicesthat provide essential expertise to underp<strong>in</strong> <strong>your</strong><strong>in</strong>novation, export and expansion plans. Our shareof exports of professional and bus<strong>in</strong>ess services toOECD countries is second only to <strong>the</strong> US. 3 We host sixof <strong>the</strong> top ten <strong>in</strong>ternational networks of accountancyfirms, four of <strong>the</strong> ten biggest law firms and <strong>the</strong> world’slargest advertis<strong>in</strong>g company. The creative brilliance ofour advertis<strong>in</strong>g agencies can propel <strong>your</strong> brand around<strong>the</strong> world – only <strong>the</strong> USA and Australia won morecreative awards than us <strong>in</strong> 2013.Dynamic attractionOur bus<strong>in</strong>ess-friendly environment is boost<strong>in</strong>g <strong>in</strong>novationacross multiple sectors and generat<strong>in</strong>g a vibrancy that attracts<strong>the</strong> biggest and <strong>the</strong> best. This dynamism is creat<strong>in</strong>g faster<strong>growth</strong> <strong>in</strong> <strong>the</strong> f<strong>in</strong>ancial technology sector than anywhere else<strong>in</strong> <strong>the</strong> world; 2 br<strong>in</strong>g<strong>in</strong>g Hollywood’s biggest movie makers toour shores; and has persuaded Hitachi to move its <strong>global</strong> railheadquarters from Tokyo to London.4 of <strong>the</strong> top10 law firms6 of <strong>the</strong> top 10accountancy firmsWorld’s largestadvertis<strong>in</strong>g companyDigital <strong>UK</strong>We already have <strong>the</strong>best superfastbroadband service ofany major Europeaneconomy, 6 and we willkeep it this way. Our<strong>in</strong>vestment to deliver<strong>the</strong> best broadbandnetwork <strong>in</strong> Europemeans you can rely ona digital <strong>in</strong>frastructurethat will support <strong>the</strong>huge <strong>in</strong>crease <strong>in</strong> usageand <strong>the</strong> demand <strong>for</strong>lightn<strong>in</strong>g-fast speed,anywhere, anytime.Strong economy,soft powerWe are ranked second<strong>global</strong>ly <strong>for</strong> our ‘soft power’. 7It’s a reputational anddiplomatic <strong>in</strong>fluence basedon a rich mix of cultural,creative, bus<strong>in</strong>ess andpolitical strengths. It canbe a potent asset to <strong>your</strong><strong>UK</strong> bus<strong>in</strong>ess; we use this<strong>in</strong>fluence to shape outcomesand make deals that arebeyond o<strong>the</strong>r countries –deals that can free <strong>your</strong>bus<strong>in</strong>ess to expand <strong>global</strong>ly.Sources:1. world-stock-exchanges.net 2014. List of stock exchanges around <strong>the</strong> world2. Accenture 2012. The Boom <strong>in</strong> Global F<strong>in</strong>tech <strong>Invest</strong>ment: A new <strong>growth</strong> opportunity <strong>for</strong> London3. OECD Trade <strong>in</strong> Services data4. Ipsos 2012. English is <strong>the</strong> Common L<strong>in</strong>k <strong>for</strong> Employees Who Interact with People from O<strong>the</strong>r Countries (onl<strong>in</strong>e)5. Deloitte 2014. London Futures: London Crowned Bus<strong>in</strong>ess Capital of Europe6. Ofcom 2014. European Broadband Scorecard7. Monocle 2013. Soft Power Survey 2013Mak<strong>in</strong>g <strong>the</strong> EU work<strong>for</strong> <strong>UK</strong> bus<strong>in</strong>essWe are a strong voice <strong>in</strong><strong>the</strong> EU, and will cont<strong>in</strong>ue touse our <strong>in</strong>fluence to makeit more open, competitive,flexible and democraticallyaccountable. We reta<strong>in</strong>sovereignty over ourcurrency, allow<strong>in</strong>g <strong>your</strong><strong>UK</strong> bus<strong>in</strong>ess to reactflexibly to chang<strong>in</strong>g marketconditions.
6 <strong>Invest</strong> <strong>in</strong> <strong>the</strong> <strong>UK</strong>: <strong>your</strong> spr<strong>in</strong>gboard <strong>for</strong> <strong>global</strong> <strong>growth</strong><strong>Invest</strong> <strong>in</strong> <strong>the</strong> <strong>UK</strong>: <strong>your</strong> spr<strong>in</strong>gboard <strong>for</strong> <strong>global</strong> <strong>growth</strong>7Magnet <strong>for</strong> Talent<strong>Invest</strong> <strong>in</strong> <strong>the</strong> <strong>UK</strong> to access <strong>global</strong> talentand high-level skills.Global talent hubWe are <strong>the</strong> highest rated powerhouseeconomy <strong>in</strong> <strong>the</strong> Global Talent CompetitivenessIndex based on our success at attract<strong>in</strong>g,grow<strong>in</strong>g and reta<strong>in</strong><strong>in</strong>g talent, alongside <strong>the</strong>quality of our skills base. 1 Ranked 7th <strong>in</strong> <strong>the</strong>world, our population is bigger than <strong>the</strong>comb<strong>in</strong>ed total of <strong>the</strong> six countries rankedabove us. <strong>Invest</strong>ors choose <strong>the</strong> <strong>UK</strong> because of<strong>the</strong> breadth of skills across multiple <strong>in</strong>dustrysectors <strong>in</strong> a very large work<strong>for</strong>ce.No.rated major economy<strong>for</strong> <strong>global</strong> talentThe era of ‘talentism’Access to talent is now <strong>the</strong> driver of economic<strong>growth</strong>. While many parts of <strong>the</strong> world facelabour shortages, <strong>global</strong> migration trendsfavour <strong>the</strong> <strong>UK</strong>. Locate here and you’ll be <strong>in</strong>one of <strong>the</strong> few European countries expectedto experience labour supply <strong>growth</strong> <strong>in</strong> <strong>the</strong>next 15 years. 2The <strong>UK</strong> - workplace of choiceSkilled people from overseas want to work <strong>in</strong> <strong>the</strong> <strong>UK</strong>,and our visa system is set up to encourage <strong>the</strong>m. Of<strong>the</strong> one million employed people who moved to an EUMember State (ei<strong>the</strong>r from with<strong>in</strong> or outside <strong>the</strong> EU) <strong>in</strong>2011 and 2012, 415,000 (38 percent) took up residence<strong>in</strong> <strong>the</strong> <strong>UK</strong> – nearly 190,000 more than <strong>the</strong> second mostpopular dest<strong>in</strong>ation, Germany. 3 As talent becomes more<strong>in</strong>ternationally mobile, we cont<strong>in</strong>ue to attract <strong>the</strong> bestfrom overseas.Entrepreneurial hubOver half a million bus<strong>in</strong>esses started <strong>in</strong> <strong>the</strong> <strong>UK</strong> <strong>in</strong> 2013, 4helped by a bus<strong>in</strong>ess environment with <strong>the</strong> fewest barriersto entrepreneurship <strong>in</strong> <strong>the</strong> world. 5 <strong>UK</strong>TI has set upprogrammes such as Sirius (our graduate talent scheme)and <strong>the</strong> Global Entrepreneur Programme to encourage<strong>the</strong> brightest and best <strong>in</strong>ternational entrepreneurs to startand expand <strong>the</strong>ir enterprises <strong>in</strong> <strong>the</strong> <strong>UK</strong>. With our uniquepackage of bus<strong>in</strong>ess support, tax <strong>in</strong>centives and visaflexibility you can push <strong>your</strong> products and servicesquickly <strong>in</strong>to <strong>global</strong> markets.Bus<strong>in</strong>esssupport=£tax<strong>in</strong>centivesvisaflexibility<strong>your</strong> products and servicesmov<strong>in</strong>g quickly <strong>in</strong>to <strong>the</strong><strong>global</strong> marketThe mult<strong>in</strong>ationals’ choiceMany of <strong>the</strong> world’s biggest and most dynamiccompanies have analysed <strong>the</strong> pros and cons oflocat<strong>in</strong>g <strong>in</strong> different countries – and <strong>the</strong>n chosen<strong>the</strong> <strong>UK</strong>. Google, Facebook, Amazon, Coca-Cola,Motorola and Sony are just a few examples ofcompanies that have <strong>the</strong>ir European headquartershere. In 2012 <strong>the</strong> <strong>UK</strong> was <strong>the</strong> chosen location <strong>for</strong>43 percent of new <strong>in</strong>ward <strong>in</strong>vestment projects withheadquarters <strong>in</strong> Europe – three times more thanour nearest competitors.The <strong>UK</strong> was chosen <strong>for</strong>43 %of new <strong>in</strong>ward <strong>in</strong>vestmentprojects with HQoperations <strong>in</strong> Europe3xmore than <strong>the</strong> nearestcompetitorsSources:1. INSEAD, Human Capital Leadership Index & Adecco Group 2013.The Global Talent Competitiveness Index 20132. The Boston Consult<strong>in</strong>g Group/Ra<strong>in</strong>er Strack 2013. The Loom<strong>in</strong>g Global Talent Crisis – How to Counteract Work<strong>for</strong>ce Imbalances3. Eurostat 2013. European Union Labour Force Survey – annual results 20124. StartUp Brita<strong>in</strong> 2013. ‘Brita<strong>in</strong> hits record start-up rate <strong>in</strong> 2013’ (onl<strong>in</strong>e)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 <strong>the</strong> only large economy ranked above us<strong>in</strong> <strong>the</strong> Global Talent Competitiveness Index rat<strong>in</strong>g<strong>for</strong> <strong>the</strong> availability of both ‘labour and vocationalskills’ and ‘<strong>global</strong> knowledge skills’. It is strongevidence <strong>for</strong> <strong>the</strong> breadth of our skills base acrossmultiple sectors, concentrated <strong>in</strong> <strong>the</strong> second largestlabour <strong>for</strong>ce <strong>in</strong> <strong>the</strong> EU.Simple, fair personal taxationOur personal tax rates are highly competitive withthose <strong>in</strong> o<strong>the</strong>r European countries, particularlywhen <strong>the</strong> effects of <strong>in</strong>come tax and employee socialsecurity contributions are comb<strong>in</strong>ed. Our ‘all-<strong>in</strong>’wage tax rate is <strong>the</strong> lowest of <strong>the</strong> EU’s five majoreconomies.Equality <strong>UK</strong>You and <strong>your</strong> teams will discover <strong>the</strong> <strong>UK</strong> is morethan just a great place <strong>for</strong> bus<strong>in</strong>ess. You jo<strong>in</strong> adiverse and welcom<strong>in</strong>g country - <strong>the</strong> World ValuesSurvey identifies Britons as among <strong>the</strong> world’s mosttolerant people. 6 We are proud to have some of <strong>the</strong>strongest equality legislation <strong>in</strong> Europe. You can liveand work <strong>in</strong> <strong>the</strong> <strong>UK</strong> reassured by comprehensive lawsthat protect <strong>the</strong> rights of <strong>in</strong>dividuals and promoteequality of opportunity <strong>for</strong> all.
8<strong>Invest</strong> <strong>in</strong> <strong>the</strong> <strong>UK</strong>: <strong>your</strong> spr<strong>in</strong>gboard <strong>for</strong> <strong>global</strong> <strong>growth</strong><strong>Invest</strong> <strong>in</strong> <strong>the</strong> <strong>UK</strong>: <strong>your</strong> spr<strong>in</strong>gboard <strong>for</strong> <strong>global</strong> <strong>growth</strong>9<strong>for</strong> <strong>in</strong>ternational cities that wantA nation of scientistssmarter ways to improve qualityEight greatOne <strong>in</strong> five work <strong>in</strong> science-basedof life, streng<strong>the</strong>n <strong>the</strong>ir economytechnologiesProtect <strong>your</strong>Big dataRegenerative roles – that’s 5.8 million people,and protect <strong>the</strong> environment.<strong>in</strong>tellectual propertyThe <strong>UK</strong> Government’smedic<strong>in</strong>eprojected to <strong>in</strong>crease to 7.1 millionIt’s our mission to unlock <strong>global</strong>Industrial Strategypeople by 2030.SatellitesWe are secondInternational <strong>in</strong>novators clearlyurban <strong>in</strong>novation markets <strong>for</strong>focuses on eightonly to <strong>the</strong> USA among OECDtrust our robust <strong>in</strong>tellectual<strong>UK</strong>-based bus<strong>in</strong>esses by help<strong>in</strong>gAgri-sciencetechnologies with <strong>the</strong>countries <strong>for</strong> <strong>the</strong> share of <strong>the</strong>property system. They own<strong>the</strong>m create <strong>the</strong> products andpotential to trans<strong>for</strong>m our Robotics andwork<strong>for</strong>ce work<strong>in</strong>g <strong>in</strong> R&D. 4 services that trans<strong>for</strong>m city life.lives – and areas <strong>in</strong> which autonomous Advanced<strong>UK</strong>, compared to 17.4 percentwe are set to lead <strong>the</strong> systemsmaterials<strong>in</strong> Germany, 12.6 percent <strong>in</strong> <strong>the</strong>Need support <strong>for</strong> <strong>your</strong> <strong>UK</strong>-based <strong>in</strong>novation?Hub of Innovation<strong>Invest</strong> <strong>in</strong> <strong>the</strong> <strong>UK</strong> to br<strong>in</strong>g <strong>in</strong>novative products and services to <strong>global</strong> markets.The Technology Strategy Board can help you to:www.<strong>in</strong>novateuk.org• Br<strong>in</strong>g products and services morequickly to market.• Access research & development (R&D) facilities.Dynamic• Connect with research or bus<strong>in</strong>ess partners.<strong>in</strong>novation• W<strong>in</strong> fund<strong>in</strong>g to reduce <strong>the</strong> risk fromagency <strong>in</strong>novation projects.World lead<strong>in</strong>g R&D InnovationNobel brilliance Global researchThe EuropeanDigital capitalTurn<strong>in</strong>g ideas <strong>in</strong>to Government<strong>in</strong>dustrypartnershipenvironment<strong>in</strong>centivesThe <strong>UK</strong> has produced <strong>in</strong>fluencedest<strong>in</strong>ation <strong>for</strong>of Europenew products andOur partnership withOur generous tax credits nearly 90 Nobel Prize The output of our research<strong>in</strong>novationEast London’s Tech City servicesTwo-thirds of R&D<strong>in</strong>dustry creates a thriv<strong>in</strong>g<strong>in</strong>novation ecosystem<strong>for</strong> turn<strong>in</strong>g ideas <strong>in</strong>tocommercial success. Weare <strong>the</strong> top rated majorworld economy <strong>in</strong> <strong>the</strong>Global Innovation Index,with particular strengthsidentified <strong>in</strong> <strong>the</strong> qualityof our universities, ourknowledge-<strong>in</strong>tensivelabour <strong>for</strong>ce and <strong>the</strong>impact of universitybus<strong>in</strong>esscollaboration. 1cut <strong>the</strong> cost of lead<strong>in</strong>gedgeresearch and hightechcommercialisationprocesses. The PatentBox lowers <strong>the</strong> rate ofcorporation tax you willpay on profits earnedfrom qualify<strong>in</strong>g patented<strong>in</strong>ventions to ten percent– half <strong>the</strong> headl<strong>in</strong>e tax ratethat will apply from 2015.The tax benefit from R&Dtax credits can amountto six percent of a largecompany’s qualify<strong>in</strong>g R&Dexpenditure, <strong>in</strong>creas<strong>in</strong>g to33 percent <strong>for</strong> a small ormedium sized company.w<strong>in</strong>ners <strong>in</strong> scientificdiscipl<strong>in</strong>es, more than anyo<strong>the</strong>r country apart from<strong>the</strong> USA. <strong>UK</strong> scientistswhose advances havechanged <strong>the</strong> world <strong>in</strong>cludeSir Robert Edwards who(along with surgeonPatrick Steptoe) pioneeredconception through IVF,Francis Crick and JamesWatson who discovered<strong>the</strong> structure of <strong>the</strong> DNAmolecule, and Peter Higgs<strong>in</strong> 2013 <strong>for</strong> his <strong>the</strong>oreticalwork on <strong>the</strong> existence of<strong>the</strong> subatomic particle wenow call <strong>the</strong> ‘Higgs boson’.community is prodigious.With less than one percentof <strong>the</strong> <strong>global</strong> population <strong>the</strong><strong>UK</strong> accounts <strong>for</strong> 6.4 percentof <strong>global</strong> journal articles,11.6 percent of citations and15.9 percent of <strong>the</strong> world’smost highly cited articles. 2Choose to <strong>in</strong>novate <strong>in</strong><strong>the</strong> <strong>UK</strong> and you’re <strong>in</strong>good company. In 2011we attracted almostUS$7 billion of overseasf<strong>in</strong>ancedR&D. This is <strong>the</strong>same as Canada, F<strong>in</strong>land,Japan, Ch<strong>in</strong>a and Russiacomb<strong>in</strong>ed, and more thanei<strong>the</strong>r France or Germany(US$4 billion each). 5symbolises <strong>the</strong> vibrantentrepreneurial spirit <strong>in</strong><strong>the</strong> <strong>UK</strong>. It is now Europe’slargest digital cluster anda hotbed of fast-<strong>growth</strong>start-ups and disruptivetechnologies. You don’thave to be <strong>in</strong> East Londonto benefit from this hubof <strong>in</strong>novation – Tech Cityworks with digital clustersacross <strong>the</strong> <strong>UK</strong>.Catapult Centres br<strong>in</strong>gtoge<strong>the</strong>r <strong>the</strong> very bestof <strong>the</strong> <strong>UK</strong>’s bus<strong>in</strong>esses,scientists and eng<strong>in</strong>eersto work side by side onlate-stage research anddevelopment. A widerange of support, facilitiesand opportunities <strong>for</strong>collaboration exist at over100 science parks and300 bus<strong>in</strong>ess <strong>in</strong>cubators.Smart citiesexpenditure <strong>in</strong> <strong>the</strong> <strong>UK</strong> iscontributed by <strong>in</strong>dustry, 6and half of bus<strong>in</strong>ess R&Dexpenditure is by <strong>for</strong>eignownedfirms – proof of<strong>the</strong> attraction of our<strong>in</strong>novation environment.By improv<strong>in</strong>g accessto f<strong>in</strong>ance, offer<strong>in</strong>ggenerous tax <strong>in</strong>centivesand <strong>in</strong>vest<strong>in</strong>g <strong>in</strong> R&D<strong>in</strong>frastructure we freecompanies to <strong>in</strong>novate<strong>in</strong> ways that might bebeyond <strong>the</strong>m o<strong>the</strong>rwise.Our London-based Future CitiesCatapult is develop<strong>in</strong>g solutionsworld. The technologiesUSA and 2.4 percent <strong>in</strong> Japan. 7we are commercialis<strong>in</strong>gSyn<strong>the</strong>ticEnergyat lead<strong>in</strong>g-edge R&Dbiologystoragefacilities are:Sources:1. Cornell University, INSEAD & World Intellectual Property Organisation 2013. Global Innovation Index 20132. Elsevier BV 2013. International Comparative Per<strong>for</strong>mance of <strong>the</strong> <strong>UK</strong> Research Base3. Science Council 2011. Shape of <strong>the</strong> <strong>UK</strong> Science Work<strong>for</strong>ce4. OECD 2013. STI Scoreboard5. OECD 2012. OECD Science, Technology & Industry Outlook 20126. Office <strong>for</strong> National Statistics 2013. Bus<strong>in</strong>ess Enterprise R&D - 20127. OECD 2014; International co-operation <strong>in</strong> patents: <strong>for</strong>eign ownership of domestic <strong>in</strong>ventions
10 <strong>Invest</strong> <strong>in</strong> <strong>the</strong> <strong>UK</strong>: <strong>your</strong> spr<strong>in</strong>gboard <strong>for</strong> <strong>global</strong> <strong>growth</strong><strong>Invest</strong> <strong>in</strong> <strong>the</strong> <strong>UK</strong>: <strong>your</strong> spr<strong>in</strong>gboard <strong>for</strong> <strong>global</strong> <strong>growth</strong>11TalentThe <strong>UK</strong> ranks first among <strong>the</strong> powerhouse economies <strong>for</strong> grow<strong>in</strong>g, reta<strong>in</strong><strong>in</strong>g and attract<strong>in</strong>g talent. 1It’s a vital asset <strong>in</strong> an era where human capital is <strong>the</strong> eng<strong>in</strong>e of economic <strong>growth</strong>. Talent, creativityand <strong>the</strong> ability to <strong>in</strong>novate are <strong>the</strong> game-changers.<strong>UK</strong> talent: <strong>the</strong> headl<strong>in</strong>esThe highest proportionof adults with tertiaryeducation <strong>in</strong> WesternEuropeTop rated <strong>for</strong> grow<strong>in</strong>g,reta<strong>in</strong><strong>in</strong>g and attract<strong>in</strong>gtalent among <strong>the</strong>powerhouse economiesThe only major Europeaneconomy expect<strong>in</strong>g an<strong>in</strong>crease <strong>in</strong> labour supplyup to 2030More employed peoplemoved to <strong>the</strong> <strong>UK</strong> <strong>in</strong> 2011and 2012 than any o<strong>the</strong>rEU Member StateHalf of Europe’sgraduates will<strong>in</strong>g torelocate to f<strong>in</strong>d workwould choose <strong>the</strong> <strong>UK</strong>Access to talent is more important thanever at a time when many parts of <strong>the</strong>world face shortages <strong>in</strong> labour supply.The Boston Consult<strong>in</strong>g Group estimatesthat Western Europe will need to<strong>in</strong>crease its work<strong>for</strong>ce over <strong>the</strong> next 15years by 45 million – equivalent to <strong>the</strong>work<strong>in</strong>g population of Germany. 2From culture, sport and enterta<strong>in</strong>mentto food, design and technology, <strong>the</strong>impact of our talent and entrepreneurialspirit is felt <strong>in</strong> every corner of <strong>the</strong> globe.This will cont<strong>in</strong>ue. We <strong>in</strong>vest heavily <strong>in</strong><strong>the</strong> strengths that comb<strong>in</strong>e to make<strong>the</strong> <strong>UK</strong> such a magnet <strong>for</strong> talent - areassuch as education, skills, management,research and <strong>in</strong>novation.The depth of our talent shows through<strong>in</strong> <strong>the</strong> broad range of <strong>in</strong>dicatorsdeveloped by INSEAD. 3 We rate fourth<strong>in</strong> <strong>the</strong> world <strong>for</strong> ‘qualified labour flow’based on our success at attract<strong>in</strong>gand reta<strong>in</strong><strong>in</strong>g talented people fromacross <strong>the</strong> world, shar<strong>in</strong>g <strong>the</strong> top tenlist with Switzerland, <strong>the</strong> USA and <strong>the</strong>Ne<strong>the</strong>rlands. The <strong>UK</strong>’s long-stand<strong>in</strong>gattraction 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 learn<strong>in</strong>g, bus<strong>in</strong>ess and<strong>in</strong>novation environment that attractsand keeps skilled people.2013 Global TalentCompetitiveness IndexTop seven plusselected rank<strong>in</strong>gsPopulation(millions)1 Switzerland 8.12 S<strong>in</strong>gapore 5.43 Denmark 5.64 Sweden 9.75 Luxembourg 0.56 Ne<strong>the</strong>rlands 16.87 <strong>UK</strong> 63.79 USA16 Germany30 France34 Spa<strong>in</strong>35 ItalyThe <strong>UK</strong>’s populationis greater than <strong>the</strong>comb<strong>in</strong>ed total of<strong>the</strong> six higher ratedcountries – giv<strong>in</strong>g youaccess to a biggerpool of talent.4 th 4 of <strong>the</strong> top 6The <strong>UK</strong>’s rank<strong>in</strong>g <strong>in</strong> <strong>the</strong> world<strong>for</strong> ‘qualified labour flow’ basedon our success at attract<strong>in</strong>gand reta<strong>in</strong><strong>in</strong>g talented peoplefrom across <strong>the</strong> worldbest universities <strong>in</strong> <strong>the</strong> world“Bas<strong>in</strong>g ourselves <strong>in</strong> <strong>the</strong> <strong>UK</strong> is a no-bra<strong>in</strong>er. As muchas anyth<strong>in</strong>g, it makes sense to be here <strong>for</strong> <strong>the</strong> sheerentrepreneurial spirit and sense of adventure.”- Gerry Sutton – CEO of Adstream (advertis<strong>in</strong>g services provider and part of <strong>the</strong> Paul Ramsay Group, Australia)Educational excellenceINSEAD rates <strong>the</strong> <strong>UK</strong> first <strong>global</strong>ly <strong>for</strong> <strong>the</strong> quality ofits management schools and university learn<strong>in</strong>g, third<strong>for</strong> lifelong learn<strong>in</strong>g and seventh <strong>for</strong> ‘higher skills andcompetencies’.Universities produce <strong>the</strong> creative and critical th<strong>in</strong>k<strong>in</strong>gskills that can trans<strong>for</strong>m bus<strong>in</strong>ess per<strong>for</strong>mance and <strong>the</strong><strong>UK</strong> has some of <strong>the</strong> very best, <strong>in</strong>clud<strong>in</strong>g four of <strong>the</strong>top six universities <strong>in</strong> <strong>the</strong> world - Ox<strong>for</strong>d, Cambridge,University College London and Imperial CollegeLondon. 4 Add this to <strong>the</strong> fact we have <strong>the</strong> highestnumber of lead<strong>in</strong>g MBA <strong>in</strong>stitutions <strong>in</strong> Europe, and it’s nosurprise that over 425,000 <strong>in</strong>ternational students came<strong>for</strong> higher education study <strong>in</strong> 2012/13 – more than anycountry apart from <strong>the</strong> USA. 5This focus on university excellence is a key reason whywe have <strong>the</strong> highest proportion of adults with tertiaryeducation <strong>in</strong> Western Europe, 6 creat<strong>in</strong>g a concentratedpool of people <strong>for</strong> professional and knowledge basedjobs. The <strong>UK</strong> is also a magnet <strong>for</strong> graduate talent – halfof Europe’s graduates who are will<strong>in</strong>g to relocate <strong>in</strong>search of <strong>the</strong>ir first professional role would prefer toemigrate to <strong>the</strong> <strong>UK</strong>. 7Research and <strong>in</strong>novation.International companies <strong>in</strong>vest billions of pounds eachyear <strong>in</strong> <strong>the</strong> <strong>UK</strong>’s science and <strong>in</strong>novation ecosystem. Halfof all <strong>UK</strong>-based bus<strong>in</strong>ess expenditure on researchand development (R&D) activity is undertaken by<strong>for</strong>eign-owned companies 8 - <strong>the</strong> highest proportionof overseas-funded research and development <strong>in</strong><strong>the</strong> OECD. 9 They are attracted by <strong>the</strong> expertise andlead<strong>in</strong>g-edge technologies available <strong>in</strong> our academic andresearch facilities – rated as <strong>the</strong> third best <strong>in</strong> <strong>the</strong> worldby <strong>the</strong> World Economic Forum, higher than any o<strong>the</strong>rmajor world economy. 10 Our world-class universitiesare <strong>the</strong> foundation <strong>for</strong> this expertise, supported by<strong>in</strong>vestment <strong>in</strong> new R&D facilities that focus on turn<strong>in</strong>gideas <strong>in</strong> to commercial success.INSEAD ranks us higher than any o<strong>the</strong>r major world economy <strong>for</strong><strong>in</strong>novation output, a reflection of our success at produc<strong>in</strong>g newproducts and services. 11 By improv<strong>in</strong>g access to f<strong>in</strong>ance, offer<strong>in</strong>ggenerous tax <strong>in</strong>centives and <strong>in</strong>vest<strong>in</strong>g <strong>in</strong> R&D <strong>in</strong>frastructure, <strong>the</strong><strong>UK</strong> opens up a whole range of new <strong>in</strong>novation possibilities <strong>for</strong> you.The <strong>UK</strong>’s life science discoveries havetrans<strong>for</strong>med scientific knowledge and cont<strong>in</strong>ueto unlock cl<strong>in</strong>ical and commercial opportunities.All of <strong>the</strong> world’s top ten pharmaceuticalscompanies have operations <strong>in</strong> <strong>the</strong> <strong>UK</strong>, <strong>in</strong>clud<strong>in</strong>gseveral with both R&D and manufactur<strong>in</strong>gcapabilities. The talent pipel<strong>in</strong>e cont<strong>in</strong>ues – wehave both <strong>the</strong> highest number of life sciencegraduates <strong>in</strong> Europe and three of <strong>the</strong> top fouruniversities <strong>for</strong> medic<strong>in</strong>e. 12Our universities research solutions to <strong>the</strong>biggest problems fac<strong>in</strong>g humank<strong>in</strong>d today. TheLondon Centre <strong>for</strong> Nanotechnology, a jo<strong>in</strong>tventure between two of <strong>the</strong> top universities<strong>in</strong> <strong>the</strong> world, University College London andImperial College London, is tackl<strong>in</strong>g <strong>global</strong>problems <strong>in</strong> <strong>in</strong><strong>for</strong>mation process<strong>in</strong>g, healthcare,energy and environment through <strong>the</strong>application of nanoscience and nanotechnology.“The London Innovation Centre will br<strong>in</strong>gtoge<strong>the</strong>r ‘<strong>the</strong> best talent.’ It will housescience and technology experts with boardexpertise <strong>in</strong> develop<strong>in</strong>g new solutions andproducts, and will have local deal-mak<strong>in</strong>gcapabilities to flexibly adapt deal structuresto match early-stage opportunities.”- Patrick Verheyen, Head of Johnson & Johnson’sInnovation Centre, London
12 <strong>Invest</strong> <strong>in</strong> <strong>the</strong> <strong>UK</strong>: <strong>your</strong> spr<strong>in</strong>gboard <strong>for</strong> <strong>global</strong> <strong>growth</strong><strong>Invest</strong> <strong>in</strong> <strong>the</strong> <strong>UK</strong>: <strong>your</strong> spr<strong>in</strong>gboard <strong>for</strong> <strong>global</strong> <strong>growth</strong>13Skills <strong>for</strong> <strong>the</strong> 21 st CenturyWelcom<strong>in</strong>g overseas talentGlobal migration flows tell you a lot about whichcountries are attractive to <strong>in</strong>ternationally mobile talent.More employed people moved to <strong>the</strong> <strong>UK</strong> <strong>in</strong> 2011 and2012 than any o<strong>the</strong>r EU Member State. 13 We also host<strong>the</strong> third largest number of highly skilled immigrantsseek<strong>in</strong>g employment <strong>in</strong> <strong>the</strong> world (after Ireland andCanada). 14 Our flexible visa system is set up to welcomeskilled workers, <strong>in</strong>ternational students, academics,entrepreneurs and <strong>in</strong>vestors. You can f<strong>in</strong>d out moreon page 18.EntrepreneurshipWe are a nation of entrepreneurs. A record 500,000bus<strong>in</strong>esses started up <strong>in</strong> <strong>the</strong> <strong>UK</strong> <strong>in</strong> 2013, 15 helped bya bus<strong>in</strong>ess environment with <strong>the</strong> fewest barriersto entrepreneurship <strong>in</strong> <strong>the</strong> world. 16 We want <strong>the</strong>brightest and best <strong>in</strong>ternational entrepreneurs tostart and expand <strong>the</strong>ir bus<strong>in</strong>ess ventures <strong>in</strong> <strong>the</strong><strong>UK</strong>, and programmes such as Sirius and <strong>the</strong> GlobalEntrepreneur Scheme are mak<strong>in</strong>g this happen.F<strong>in</strong>d out more on page 55.85 %of senior managers surveyedfrom <strong>UK</strong>-based <strong>in</strong>ternationalcompanies said <strong>the</strong> <strong>UK</strong>’sentrepreneurial culture madeit an attractive location <strong>for</strong>new activities 17Sources:1. INSEAD, Human Capital Leadership Index & Adecco Group 2013. The Global TalentCompetitiveness Index 20132. The Boston Consult<strong>in</strong>g 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 Rank<strong>in</strong>gs 20135. <strong>UK</strong> Council <strong>for</strong> 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 Bullet<strong>in</strong>: Bus<strong>in</strong>ess Enterprise Research and Development, 20129. OECD 2012. Ma<strong>in</strong> Science and Technology Indicators 201010. World Economic Forum 2013, Global Competitiveness Report 2013-14 (data from ExecutiveOp<strong>in</strong>ion Survey)11. INSEAD and World Intellectual Property Organization. The Global Innovation Index 201212. Times Higher Education 2013. The World University Rank<strong>in</strong>gs: Top 100 Universities <strong>for</strong> Cl<strong>in</strong>ical,Pre-cl<strong>in</strong>ical and Health 2013-1413. Eurostat 2013. European Union Labour Force Survey – annual results 201214. Gill and Raiser 2012. Golden <strong>growth</strong>: restor<strong>in</strong>g <strong>the</strong> lustre of <strong>the</strong> European mode. Wash<strong>in</strong>gton, DC:The World Bank15. StartUp Brita<strong>in</strong> 2013. ‘Brita<strong>in</strong> hits record start-up rate <strong>in</strong> 2013’ (onl<strong>in</strong>e)16. OECD 2012. OECD Science, Technology & Industry Outlook 201217. Ernst & Young 2014. <strong>UK</strong> Attractiveness Survey 201418. British Fashion Council 2012. London Fashion Week Facts & Figures SS13 (onl<strong>in</strong>e).19. TIGA 2014. <strong>UK</strong> Video Games Industry (onl<strong>in</strong>e)20. The Gunn Report 2013<strong>UK</strong> talent on <strong>the</strong> world stageThe <strong>UK</strong> television and film <strong>in</strong>dustry is a major<strong>in</strong>ternational success story. Our television programmesare watched around <strong>the</strong> world. The 50 th anniversaryDoctor Who special was broadcast <strong>in</strong> 94 countriesacross six cont<strong>in</strong>ents – <strong>the</strong> largest-ever simultaneousbroadcast of a television drama. Downton Abbey hasbeen sold <strong>in</strong> over 220 territories.The world’s six largest film studios - Disney, Paramount,Sony, Twentieth Century Fox, Universal and Warner Bros.- have a presence <strong>in</strong> London; and Warner Bros. also hasa state-of-<strong>the</strong>-art film production facility <strong>in</strong> Hert<strong>for</strong>dshireand a lead<strong>in</strong>g post-production house <strong>in</strong> London.British visual effects facilities have been Oscarnom<strong>in</strong>atedsix times <strong>in</strong> <strong>the</strong> last seven years and havewon three times <strong>for</strong> The Golden Compass, Inceptionand Life of Pi. British success cont<strong>in</strong>ued when <strong>the</strong> 2014Oscar <strong>for</strong> visual effects went to <strong>the</strong> film Gravity and its<strong>UK</strong> production team.“The amaz<strong>in</strong>g know-how, quality andsophistication of <strong>the</strong> British film<strong>in</strong>dustry made this film happen.”- Alfonso Cuaron, Director of GravitySome of <strong>the</strong> most iconic brands <strong>in</strong> contemporaryfashion hail from <strong>the</strong> <strong>UK</strong>. Designers such as StellaMcCartney, Jimmy Choo and Paul Smith help ensurethat fashion is one of our biggest export successes.<strong>UK</strong> designers export two-thirds of <strong>the</strong>ir output, and it’sestimated that orders of over £100 million are placeddur<strong>in</strong>g London Fashion Week each season. 18The <strong>UK</strong> video games development sector is <strong>the</strong> largest<strong>in</strong> Europe, 19 employ<strong>in</strong>g 26,000 people directly and<strong>in</strong>directly. <strong>UK</strong>-made games, such as Grand Theft Auto, aresome of <strong>the</strong> biggest gross<strong>in</strong>g sensations <strong>in</strong> <strong>the</strong> world. Weexcel at mobile content too. The most downloaded freeiPhone App <strong>in</strong> 2013 was Candy Crush Saga. Published by<strong>UK</strong> company K<strong>in</strong>g.com, <strong>the</strong> game is one of <strong>the</strong> largest<strong>in</strong>teractive enterta<strong>in</strong>ment franchises of all time.Our advertis<strong>in</strong>g sector punches above its weight –<strong>the</strong> <strong>UK</strong> is ranked third <strong>in</strong> <strong>the</strong> world <strong>for</strong> <strong>the</strong> number ofcreative awards won (beh<strong>in</strong>d <strong>the</strong> USA and Australia), butfirst as a percentage of campaigns run. 20A highly skilled work<strong>for</strong>ce is <strong>the</strong> foundation <strong>for</strong> a strong, dynamic economy. This is why skillsis one of <strong>the</strong> five central <strong>the</strong>mes of our <strong>in</strong>dustrial strategy, our whole-of-government approachto support<strong>in</strong>g economic <strong>growth</strong>. Our skills strategy is based on a strong, long-term partnershipbetween government and bus<strong>in</strong>ess. It focuses on <strong>the</strong> rigour needed to develop skills that createbus<strong>in</strong>ess <strong>in</strong>novation and expansion, and <strong>the</strong> responsiveness to adapt to employers’ needs.<strong>UK</strong> skills: <strong>the</strong> headl<strong>in</strong>esHome to four of <strong>the</strong>top six universities<strong>in</strong> <strong>the</strong> worldThe highest numberof lead<strong>in</strong>g MBA<strong>in</strong>stitutions <strong>in</strong> EuropeHighest proportionof <strong>the</strong> work<strong>for</strong>ce <strong>in</strong>professional occupationsof all <strong>the</strong> world’s majoreconomiesAn employer-ledApprenticeshipProgramme thattailors skills to <strong>your</strong>precise needs“We could outsource toRussia or India, but <strong>the</strong>quality of programmers<strong>in</strong> <strong>the</strong> <strong>UK</strong> is excellent,and we prefer to haveour contractors nearbyso we can work closelywith <strong>the</strong>m.”-Kate Lewis, Commercial Directorof Frog Trade, owned by Malaysia’sYTL Corporation.We build from a position of strength.Our higher education <strong>in</strong>stitutions areworld class; <strong>the</strong> <strong>UK</strong> is home to four of<strong>the</strong> top six universities <strong>global</strong>ly, with29 <strong>in</strong> <strong>the</strong> top 200 - more than anyo<strong>the</strong>r country apart from <strong>the</strong> USA. 1This quality attracts students from allover <strong>the</strong> world, an <strong>in</strong>flow of talent tha<strong>the</strong>lps us produce <strong>the</strong> highest number ofgraduates <strong>in</strong> Western Europe. 2 The <strong>UK</strong>is <strong>the</strong> second most popular dest<strong>in</strong>ationafter <strong>the</strong> USA <strong>for</strong> <strong>in</strong>ternational students,with an estimated 13 percent of <strong>the</strong><strong>in</strong>ternational student market share. 3We have 150 universities work<strong>in</strong>g withbus<strong>in</strong>ess on research and developmentprojects – expertise you too can benefitfrom. University capability feeds<strong>in</strong>to our network of prestigious anddynamic research <strong>in</strong>stitutions, rankedthird <strong>global</strong>ly <strong>for</strong> quality <strong>in</strong> a surveyof bus<strong>in</strong>esses. 4 Examples <strong>in</strong>clude <strong>the</strong>network of scientific researchers atOx<strong>for</strong>d Science Vale, <strong>the</strong> state-of-<strong>the</strong>artfacilities <strong>for</strong> advanced eng<strong>in</strong>eer<strong>in</strong>gtechnology at Sci-Tech Daresbury <strong>in</strong>Cheshire, and <strong>for</strong> transport systemstechnology at MIRA Technology Park<strong>in</strong> Leicestershire.Case studyBus<strong>in</strong>ess-university collaboration <strong>in</strong> actionLoughborough University and eng<strong>in</strong>eer<strong>in</strong>g company Caterpillarwork toge<strong>the</strong>r to <strong>in</strong>vestigate low-emissions technologies <strong>for</strong><strong>in</strong>ternal combustion eng<strong>in</strong>es. The Caterpillar Innovation andResearch Centre has developed new technologies to improveeng<strong>in</strong>e and mach<strong>in</strong>e per<strong>for</strong>mance, reduce exhaust emissions andimprove fuel efficiency.Liverpool University and Indi<strong>the</strong>rm plc collaborated <strong>in</strong> <strong>the</strong>design of an award-w<strong>in</strong>n<strong>in</strong>g trolley which enables <strong>the</strong> immediateresuscitation of newborns whilst <strong>the</strong> umbilical cord is still <strong>in</strong>tact– a product with <strong>the</strong> potential to save <strong>the</strong> lives of thousands ofvulnerable babies.A multi-million pound commitment from Siemens supported <strong>the</strong>University of L<strong>in</strong>coln’s new School of Eng<strong>in</strong>eer<strong>in</strong>g - <strong>the</strong> firstdedicated facility of its k<strong>in</strong>d to be built <strong>in</strong> <strong>the</strong> <strong>UK</strong> <strong>for</strong> more than20 years. Steve Middlebrough, Director of Eng<strong>in</strong>eer<strong>in</strong>g, Siemens(L<strong>in</strong>coln), said: ‘Our collaboration with <strong>the</strong> University is groundbreak<strong>in</strong>g<strong>in</strong> many ways. It represents a new model of <strong>in</strong>dustry/educational collaboration provid<strong>in</strong>g clear benefits <strong>for</strong> bothSiemens and <strong>the</strong> University. It’s a true partnership.’
14 <strong>Invest</strong> <strong>in</strong> <strong>the</strong> <strong>UK</strong>: <strong>your</strong> spr<strong>in</strong>gboard <strong>for</strong> <strong>global</strong> <strong>growth</strong><strong>Invest</strong> <strong>in</strong> <strong>the</strong> <strong>UK</strong>: <strong>your</strong> spr<strong>in</strong>gboard <strong>for</strong> <strong>global</strong> <strong>growth</strong>15Percentage of adults with tertiary education<strong>UK</strong>42%Ireland38%Switzerland35%Denmark34%Ne<strong>the</strong>rlands32%Spa<strong>in</strong>32%France30%Germany28%Italy 15%Percentage of <strong>the</strong> work<strong>for</strong>ce <strong>in</strong> professional occupationsDenmark25%<strong>UK</strong>24%Switzerland23%Ne<strong>the</strong>rlands 22.5%Ireland 22%Germany 17%France 16.5%Spa<strong>in</strong> 16%Italy 13%“The <strong>UK</strong> is now a real centre<strong>for</strong> technical <strong>in</strong>telligence.The high quality ofeducation and a significant<strong>in</strong>vestment <strong>in</strong> bus<strong>in</strong>esstechnology means <strong>the</strong>talent pool is very strong.”- Gerry Sutton – CEO of Adstream(advertis<strong>in</strong>g services provider and part of<strong>the</strong> Paul Ramsay Group, Australia)Source: OECD 2013. Education at a glance (data refers to 2011)Source: International Labour Organization 2011. KeyIndicators of <strong>the</strong> Labour Market, 7th editionThe <strong>UK</strong> is also home to 14 of <strong>the</strong> top 100 full-time MBArank<strong>in</strong>g <strong>in</strong>stitutions, <strong>in</strong>clud<strong>in</strong>g London Bus<strong>in</strong>ess School,University of Bath School of Management and Universityof Strathclyde Bus<strong>in</strong>ess School. The rest of Europe onlycontributes 19 <strong>in</strong>stitutions to this list. 5The quality of our higher education <strong>in</strong>stitutions and <strong>the</strong>irappeal to <strong>in</strong>ternational students means you get accessto a large, highly skilled labour <strong>for</strong>ce. The <strong>UK</strong> has <strong>the</strong>highest percentage of adults with tertiary education <strong>in</strong>western Europe. 6 We also have <strong>the</strong> highest proportion of<strong>the</strong> work<strong>for</strong>ce <strong>in</strong> professional occupations of all <strong>the</strong> world’smajor economies. 7The Global Talent Competitiveness Index (GTCI) illustrates<strong>the</strong> diversity of our skills base. <strong>Invest</strong>ors choose <strong>the</strong> <strong>UK</strong>because of <strong>the</strong> breadth of skills across multiple <strong>in</strong>dustrysectors <strong>in</strong> a very large work<strong>for</strong>ce. The USA is <strong>the</strong> onlylarge economy ranked above us <strong>in</strong> <strong>the</strong> GTCI rat<strong>in</strong>g <strong>for</strong> <strong>the</strong>availability of both ‘labour and vocational skills’ and ‘<strong>global</strong>knowledge skills’. We have a high concentration of skilledworkers <strong>in</strong> a population that is over ten times <strong>the</strong> size ofDenmark’s, and seven times larger than <strong>in</strong> Switzerland.With a highly mobile work<strong>in</strong>g population of over 30 millionbased with<strong>in</strong> a small geographical area, you can access <strong>the</strong>skills you need from any location <strong>in</strong> <strong>the</strong> <strong>UK</strong>.Re<strong>in</strong>vent<strong>in</strong>g apprenticeshipsApprenticeships are at <strong>the</strong> heart of our drive to provideworld-class vocational education. We are expand<strong>in</strong>g andstreng<strong>the</strong>n<strong>in</strong>g apprenticeships at all levels to standardsdesigned by employers, not government. We are alsorout<strong>in</strong>g more fund<strong>in</strong>g directly through employers, giv<strong>in</strong>g you<strong>the</strong> option to buy or develop apprenticeship tra<strong>in</strong><strong>in</strong>g tailoredto <strong>your</strong> needs. You can lead a partnership with an educationprovider and reap <strong>the</strong> benefits of a tra<strong>in</strong><strong>in</strong>g programmedesigned specifically to meet <strong>your</strong> skills needs.With every apprentice tra<strong>in</strong><strong>in</strong>g to an employer-designedstandard by 2017, you can take advantage of <strong>the</strong> grow<strong>in</strong>gtalent pool with <strong>the</strong> relevant skills and knowledge <strong>for</strong> <strong>your</strong>sector. The pool is grow<strong>in</strong>g fast – over 860,000 people were<strong>in</strong> apprenticeships <strong>in</strong> 2012/13, eight percent more than <strong>the</strong>previous year. In <strong>the</strong> first quarter of 2014, onl<strong>in</strong>e applicationsto vacancies were up by 48 percent over <strong>the</strong> same period<strong>in</strong> <strong>the</strong> previous year, with a big <strong>in</strong>crease <strong>in</strong> <strong>the</strong> number ofyoung women apply<strong>in</strong>g. 8Case studyEmployer-led fund<strong>in</strong>g - NissanNissan needed to recruit 2,000 additional staffto work on <strong>the</strong> launch of new car models at itsSunderland plant. They developed a skills programme<strong>in</strong> partnership with regional suppliers, GatesheadCollege and <strong>the</strong> University of Sunderland. Governmentfund<strong>in</strong>g of £2.7 million supported Nissan’s contributionof more than £4 million over two years. The outcome– tra<strong>in</strong><strong>in</strong>g <strong>for</strong> 3,650 new recruits, exist<strong>in</strong>g staff andsupply cha<strong>in</strong> workers <strong>in</strong> a programme that <strong>in</strong>cludedfour Apprenticeship Programmes, over 250 coursesand <strong>the</strong> award of nearly 2,500 <strong>for</strong>mal qualifications.Ready <strong>for</strong> new technologiesNew <strong>in</strong>dustries and technologies are open<strong>in</strong>g up <strong>global</strong>opportunities - but only <strong>for</strong> countries with <strong>the</strong> advanced skillsto lead <strong>the</strong> field. You can <strong>in</strong>vest <strong>in</strong> <strong>the</strong> <strong>UK</strong> confident that weare ready <strong>for</strong> <strong>the</strong>se opportunities. We are <strong>in</strong>vest<strong>in</strong>g <strong>in</strong> <strong>the</strong> skillsneeded <strong>for</strong> <strong>growth</strong> technologies, jo<strong>in</strong>t-funded with employersso that tra<strong>in</strong><strong>in</strong>g is directly tied to <strong>the</strong>ir needs <strong>in</strong> strategic,high-value <strong>in</strong>dustries.National collegesOur new generation of national colleges are produc<strong>in</strong>gspecialists <strong>in</strong> key technical sectors. Examples <strong>in</strong>clude <strong>the</strong>Manufactur<strong>in</strong>g Tra<strong>in</strong><strong>in</strong>g Centre <strong>in</strong> Coventry that developscutt<strong>in</strong>g-edge skills <strong>in</strong> advanced eng<strong>in</strong>eer<strong>in</strong>g, and a new HighSpeed Rail college to provide <strong>the</strong> very best tra<strong>in</strong><strong>in</strong>g <strong>in</strong> raileng<strong>in</strong>eer<strong>in</strong>g, environmental science and construction.Br<strong>in</strong>g<strong>in</strong>g <strong>the</strong> best talent to <strong>the</strong> <strong>UK</strong>Our cont<strong>in</strong>u<strong>in</strong>g appeal as a dest<strong>in</strong>ation <strong>for</strong> <strong>in</strong>ternationalworkers and a proactive migration policy will help youbr<strong>in</strong>g skilled staff <strong>in</strong> to <strong>the</strong> <strong>UK</strong>. Our visa system is set up towelcome skilled workers, <strong>in</strong>ternational students, academics,entrepreneurs and <strong>in</strong>vestors. In <strong>the</strong> year end<strong>in</strong>g March 2014,<strong>the</strong> number of work visas we issued <strong>in</strong>creased by ten percent,with skilled work visas up 18 percent. 9 You may be surprisedhow fast and straight<strong>for</strong>ward this system can be – f<strong>in</strong>d outmore on page 18.Improv<strong>in</strong>g skills <strong>in</strong> science, technology,eng<strong>in</strong>eer<strong>in</strong>g and maths (STEM)We are tak<strong>in</strong>g a range of action to help <strong>your</strong><strong>UK</strong>-based bus<strong>in</strong>ess access <strong>the</strong>se vital skills.Examples <strong>in</strong>clude:A £200 million capital<strong>in</strong>vestment <strong>in</strong> newteach<strong>in</strong>g facilities.A national programmeof bus<strong>in</strong>ess engagementwith schools to encouragechildren to considereng<strong>in</strong>eer<strong>in</strong>g careers.Fund<strong>in</strong>g of 500 Mastersleveldegree places <strong>in</strong>aerospace eng<strong>in</strong>eer<strong>in</strong>g,supported by n<strong>in</strong>e lead<strong>in</strong>gaerospace companies.Sources:1. QS Quacquarelli Symonds Limited 2014. QS World University Rank<strong>in</strong>gs 20132. OECD StatExtracts – Education and Tra<strong>in</strong><strong>in</strong>g – data from 20113. OECD 2013 – data from 20114. World Economic Forum 2011. Executive Op<strong>in</strong>ion 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 <strong>the</strong> Labour Market, 7th edition8. Skills Fund<strong>in</strong>g Agency and Department <strong>for</strong> Bus<strong>in</strong>ess, Innovation & Skills 2014. Apprenticeship vacancy report data9. ONS 2014. Migration Statistics Quarterly Report, May 2014
16 <strong>Invest</strong> <strong>in</strong> <strong>the</strong> <strong>UK</strong>: <strong>your</strong> spr<strong>in</strong>gboard <strong>for</strong> <strong>global</strong> <strong>growth</strong><strong>Invest</strong> <strong>in</strong> <strong>the</strong> <strong>UK</strong>: <strong>your</strong> spr<strong>in</strong>gboard <strong>for</strong> <strong>global</strong> <strong>growth</strong>17Labour MarketRigidity of employment <strong>in</strong>dex (2013)<strong>UK</strong>10Italy29Ne<strong>the</strong>rlands42The <strong>UK</strong>’s labour <strong>for</strong>ce of 32 million people is <strong>the</strong> second largest <strong>in</strong> <strong>the</strong> EU. The size and strength ofour skills base has attracted some of world’s largest mult<strong>in</strong>ational companies to locate <strong>in</strong> <strong>the</strong> <strong>UK</strong><strong>in</strong>clud<strong>in</strong>g Microsoft, Hitachi, Nissan, Coca-Cola, Motorola, Sony, Ford and Johnson & Johnson.1 100LeastrigidIreland10Germany28Spa<strong>in</strong>31France56Mostrigid<strong>UK</strong> labour: <strong>the</strong> headl<strong>in</strong>esNo.2The only majorEuropean economywith a grow<strong>in</strong>g labour<strong>for</strong>ce over <strong>the</strong> next15 yearsRated as <strong>the</strong> secondmost efficient labourmarket of <strong>the</strong> world’smajor economiesThe most competitivelabour costs <strong>in</strong>Western EuropeApplications <strong>for</strong> askilled worker visatake 30 m<strong>in</strong>utes,and 98 percent aregrantedThe World ValuesSurvey showsBritons to be among<strong>the</strong> world’s mosttolerant peopleUniquely among Europe’s majoreconomies, <strong>the</strong> <strong>UK</strong>’s labour <strong>for</strong>ce isexpected to grow over <strong>the</strong> next 15years. It’s an important consideration<strong>for</strong> <strong>in</strong>ternational <strong>in</strong>vestors when labourshortages and skills mismatches are<strong>for</strong>ecast <strong>in</strong> many parts of <strong>the</strong> world. TheUSA will need to <strong>in</strong>crease its work<strong>for</strong>ceby 35 million by 2030, and Europewill need to add 45 million. 1 Germany,France, Ne<strong>the</strong>rlands, Switzerland, Spa<strong>in</strong>and Italy are all projected to experiencea contraction of labour supply. 2Flexible labour <strong>for</strong><strong>the</strong> 21 st centuryYou can expand <strong>your</strong> <strong>UK</strong> bus<strong>in</strong>ess with<strong>the</strong> help of some of <strong>the</strong> most bus<strong>in</strong>essfriendlyemployment laws <strong>in</strong> Europe. Oursimple, flexible laws protect and promote<strong>the</strong> <strong>in</strong>terests of employees, while mak<strong>in</strong>git easy <strong>for</strong> you to hire and manage <strong>the</strong>right people with <strong>the</strong> right skills, as andwhen you need <strong>the</strong>m. Labour mobility iskey <strong>in</strong> <strong>the</strong> 21 st century – we are equipp<strong>in</strong>gour work<strong>for</strong>ce with skills that help <strong>the</strong>mmove to where <strong>the</strong>ir expertise is needed,and free<strong>in</strong>g employers to hire <strong>in</strong> <strong>the</strong> waythat suits <strong>the</strong>m.Labour supply <strong>for</strong>ecast 2A strong economy needs to empowerpeople to reach <strong>the</strong>ir full potentialwhatever <strong>the</strong>ir age, gender, race, religionor ability. This means flexible work<strong>in</strong>garrangements <strong>for</strong> employees too. Theproportion of women <strong>in</strong> managerialroles <strong>in</strong> <strong>the</strong> <strong>UK</strong> was nearly 35 percent<strong>in</strong> 2012, slightly higher than <strong>the</strong> EUaverage and higher than Ireland, Spa<strong>in</strong>,Germany and Italy. 3World Economic ForumGlobal Rank<strong>in</strong>gsCompetitiveness Report – labourmarket efficiency rank<strong>in</strong>gs (top fiveplus selected countries)1 S<strong>in</strong>gapore2 Switzerland3 Hong Kong4 USA5 <strong>UK</strong>13 Denmark16 Ireland21 Ne<strong>the</strong>rlands41 Germany71 France115 Spa<strong>in</strong>137 ItalyTalent is becom<strong>in</strong>g more <strong>in</strong>ternationally mobile. Our migrationpolicy attracts <strong>the</strong> best from overseas, and <strong>the</strong>n <strong>the</strong> quality ofour work<strong>in</strong>g conditions help persuade <strong>the</strong>m to stay here (seepages 10 to 12 <strong>for</strong> more <strong>in</strong><strong>for</strong>mation).Studies suggest we have <strong>the</strong> right balance between flexibility<strong>for</strong> employers and employees. We have <strong>the</strong> second mostefficient labour market of <strong>the</strong> world’s major economiesaccord<strong>in</strong>g to <strong>the</strong> World Economic Forum (WEF). 4WEF’s analysis covers a range of factors; we score highly<strong>in</strong> our ability to attract and reta<strong>in</strong> talent, and also <strong>in</strong> areasthat directly affect <strong>your</strong> freedom to manage people. Forexample, WEF’s data <strong>in</strong>dicates you will:• Get more flexibility to determ<strong>in</strong>e wages <strong>in</strong> <strong>the</strong><strong>UK</strong> than any o<strong>the</strong>r country <strong>in</strong> western Europe,and every country <strong>in</strong> <strong>the</strong> G7 apart from Japan.• Experience a more straight<strong>for</strong>ward process<strong>for</strong> recruit<strong>in</strong>g and dismiss<strong>in</strong>g staff here thanGermany, Ne<strong>the</strong>rlands and France.• Face lower redundancy costs <strong>in</strong> <strong>the</strong> <strong>UK</strong> than <strong>the</strong>Ne<strong>the</strong>rlands, Switzerland, France and Germany.Fur<strong>the</strong>r confirmation about our flexible labour market comesfrom <strong>the</strong> World Bank. 5 Its Rigidity of Employment Index(2013) measures <strong>the</strong> restrictions and costs <strong>in</strong>volved <strong>in</strong> hir<strong>in</strong>g,chang<strong>in</strong>g staff work<strong>in</strong>g hours and dismissals. Of our ma<strong>in</strong>European competitors, only Ireland can match us <strong>for</strong> <strong>the</strong> easeof per<strong>for</strong>m<strong>in</strong>g <strong>the</strong>se tasks.The <strong>UK</strong> also per<strong>for</strong>ms consistently well <strong>in</strong> <strong>the</strong> OECD’s<strong>in</strong>dicators of employment protection. In <strong>the</strong> 2013 <strong>in</strong>dicators,<strong>the</strong> <strong>UK</strong> had <strong>the</strong> least strict regulation <strong>in</strong> <strong>the</strong> EU, and <strong>the</strong>fourth lowest level with<strong>in</strong> <strong>the</strong> OECD. 6The <strong>UK</strong> is a relatively small country - less than half <strong>the</strong>size of France, <strong>for</strong> example, but with a similar populationsize. This creates a concentration of skilled labour that fewcountries can match. With <strong>the</strong> highest proportion of graduates<strong>in</strong> Western Europe, 7 you have ready access to <strong>the</strong> sort oftransferrable critical th<strong>in</strong>k<strong>in</strong>g skills that drive <strong>in</strong>novation andbus<strong>in</strong>ess <strong>growth</strong>.Labour costsLabour costs <strong>in</strong> <strong>the</strong> <strong>UK</strong> are <strong>the</strong> most competitive <strong>in</strong>Western Europe, 8 helped by low employer social securitycontributions. This makes <strong>the</strong> overall cost of labour lower thancountries such as France, Ireland, Ne<strong>the</strong>rlands and Germany.The <strong>UK</strong> operates a National M<strong>in</strong>imum Wage (NMW). We believethis encourages people to work, protects low paid workers andprevents bus<strong>in</strong>esses from us<strong>in</strong>g low wages to compete unfairly.Our NMW rates are lower than <strong>in</strong> France, Ireland and <strong>the</strong>Ne<strong>the</strong>rlands. 9 The rates are set to help <strong>the</strong> maximum numberof low-paid workers while encourag<strong>in</strong>g employers to recruit.Our NMW structure is simple <strong>for</strong> employers and staff alike.There are only four rates: three age-related rates, and a rate<strong>for</strong> apprentices. The rates are <strong>the</strong> same across <strong>the</strong> <strong>UK</strong> <strong>for</strong> all<strong>in</strong>dustries, occupations, sizes of firm and regions.Hourly labour costs <strong>in</strong> euros 2013Total hourly labour cost (exclud<strong>in</strong>g agriculture and public adm<strong>in</strong>istration)Industrial hourly labour costs<strong>UK</strong>Spa<strong>in</strong>20.922.521.123.3“London acts as areal magnet <strong>for</strong>top talent andas such is a realasset to <strong>the</strong> <strong>UK</strong>.”- Coface(France, f<strong>in</strong>ancial services)4294225918235432Labour supply<strong>in</strong> 2011 (millions)Labour Supply CompoundAnnual Growth 2011-2020Austria -0.01%FranceGermanyItalyNe<strong>the</strong>rlandsPolandSpa<strong>in</strong>SwedenSwitzerland<strong>UK</strong>-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 <strong>in</strong> <strong>the</strong> waythat suits <strong>your</strong> needs. Contract options vary from full-time,part-time and agency staff to freelancers, consultants andcontractors. Freedom to recruit quickly, and <strong>for</strong> as long asis needed, helps you to react to chang<strong>in</strong>g circumstances.Flexible hir<strong>in</strong>g terms and <strong>the</strong> ease of becom<strong>in</strong>g self-employedhave produced a thriv<strong>in</strong>g freelance and consultant market<strong>in</strong> <strong>the</strong> <strong>UK</strong>. The freelance market is particularly strong <strong>in</strong><strong>in</strong><strong>for</strong>mation technology, design and multimedia, sales andmarket<strong>in</strong>g and adm<strong>in</strong>istrative support.ItalyIrelandGermanyNe<strong>the</strong>rlandsFranceSwedenNot Available28.1282930.731.333.236.534.336.840.145.1
18 <strong>Invest</strong> <strong>in</strong> <strong>the</strong> <strong>UK</strong>: <strong>your</strong> spr<strong>in</strong>gboard <strong>for</strong> <strong>global</strong> <strong>growth</strong><strong>Invest</strong> <strong>in</strong> <strong>the</strong> <strong>UK</strong>: <strong>your</strong> spr<strong>in</strong>gboard <strong>for</strong> <strong>global</strong> <strong>growth</strong>19A visa system that works <strong>for</strong> bus<strong>in</strong>essWe have set up a visa system that welcomes skilled workers, <strong>in</strong>ternational students, academics,entrepreneurs and <strong>in</strong>vestors.The vast majority of visitors do not require a visato come to <strong>the</strong> <strong>UK</strong> – this applied to approximately96 percent of visitors <strong>in</strong> 2012. A number of mythssurround migration to <strong>the</strong> <strong>UK</strong>, but <strong>the</strong> facts speak<strong>for</strong> <strong>the</strong>mselves.<strong>UK</strong> Visas and Immigration run our visa service,manag<strong>in</strong>g around three million applications a yearfrom overseas nationals who wish to come to <strong>the</strong><strong>UK</strong> to visit, study or work. If you need a visa you willf<strong>in</strong>d one from <strong>the</strong> wide range available to suit <strong>your</strong><strong>in</strong>dividual needs, whe<strong>the</strong>r you are an entrepreneur,<strong>in</strong>vestor or company employee.We are constantly improv<strong>in</strong>g our visa service based oncustomer feedback. Recent enhancements <strong>in</strong>clude:38%of <strong>the</strong> one million employed people whomoved to an EU Member State (ei<strong>the</strong>r fromwith<strong>in</strong> or outside <strong>the</strong> EU) <strong>in</strong> 2011 and 2012took up residence <strong>in</strong> <strong>the</strong> <strong>UK</strong> – 415,000,nearly 190,000 more than <strong>the</strong> second mostpopular dest<strong>in</strong>ation, Germany 10“We feel very welcome <strong>in</strong> <strong>the</strong> <strong>UK</strong> as a <strong>for</strong>eign <strong>in</strong>vestor. It is a veryopen market and a great place to do bus<strong>in</strong>ess.”- Jaspal S<strong>in</strong>gh, Chief Executive of Com<strong>for</strong>tDelGro <strong>UK</strong> and Ireland(S<strong>in</strong>gapore-based transport services company)5Years• Allow<strong>in</strong>g skilled worker visas to be granted<strong>for</strong> up to five years ra<strong>the</strong>r than three.• Mak<strong>in</strong>g it easier to apply <strong>for</strong> a visa onl<strong>in</strong>e.• Sett<strong>in</strong>g up a bus<strong>in</strong>ess helpdesk to providea s<strong>in</strong>gle po<strong>in</strong>t of contact <strong>for</strong> employers’queries <strong>in</strong> <strong>the</strong> <strong>UK</strong>, and an <strong>in</strong>ternationalenquiry service <strong>for</strong> customers overseas,available <strong>in</strong> 20 languages.• Expand<strong>in</strong>g and improv<strong>in</strong>g <strong>the</strong> network ofvisa application centres; we now have over200 around <strong>the</strong> world, with 12 <strong>in</strong> each ofIndia and Ch<strong>in</strong>a alone.• Expand<strong>in</strong>g our 3-5 day priority visaservices to 100 countries.98%of skilled worker visa requests are granted,and <strong>the</strong> application takes only 30 m<strong>in</strong>utes96%of applications <strong>for</strong> visas o<strong>the</strong>r than <strong>for</strong>permanent residence (‘non-settlementvisas’) are processed with<strong>in</strong> 15 days7 daysaverage process<strong>in</strong>g time <strong>for</strong> a visit visaDiversity <strong>in</strong> <strong>the</strong> <strong>UK</strong>Your staff will f<strong>in</strong>d <strong>the</strong> <strong>UK</strong> is more than just a greatplace <strong>for</strong> bus<strong>in</strong>ess. They will jo<strong>in</strong> a diverse, welcom<strong>in</strong>gand tolerant country. In a survey of senior managers of<strong>in</strong>ternational companies already established here, 93percent said <strong>the</strong> <strong>UK</strong>’s quality of life, diversity, culture andlanguage make it an attractive location <strong>for</strong> new activities. 11At least 300 languages are spoken <strong>in</strong> London, mak<strong>in</strong>g itone of <strong>the</strong> most ethnically diverse cities <strong>in</strong> <strong>the</strong> world. 12We have comprehensive laws that protect <strong>the</strong> rights of<strong>in</strong>dividuals and promote equality of opportunity <strong>for</strong> all.The World Values Survey revealed <strong>the</strong> open nature ofour society, identify<strong>in</strong>g Britons as among <strong>the</strong> world’smost tolerant people. 13Sources:1. The Boston Consult<strong>in</strong>g Group/World Economic Forum 2011. Global Talent Risk – Seven Responses2. The Boston Consult<strong>in</strong>g Group 2013. $15 Trillion at Stake - <strong>the</strong> Loom<strong>in</strong>g Global Work<strong>for</strong>ce Crisis3. ONS 2013. Women <strong>in</strong> <strong>the</strong> Labour Market, 20134. World Economic Forum 2013. Global Competitiveness Report 2013-145. World Bank 2012. Do<strong>in</strong>g Bus<strong>in</strong>ess 2012: fDi Intelligence, from <strong>the</strong> F<strong>in</strong>ancial Times Ltd (2013)6. Department <strong>for</strong> Bus<strong>in</strong>ess, Innovation & Skills calculations based on established OECD methodology (OECD<strong>in</strong>dicators no longer provide an overall <strong>in</strong>dex)7. OECD 2013. Education at a glance (data refers to 2011)8. Eurostat 2014. News release: labour costs <strong>in</strong> <strong>the</strong> EU 289. Eurostat calculations 2014. M<strong>in</strong>imum wage statistics. For most countries, <strong>the</strong> m<strong>in</strong>imum wage is agreed <strong>in</strong>terms of a monthly rate. For Ireland, France, <strong>the</strong> <strong>UK</strong> and <strong>the</strong> USA, <strong>the</strong> m<strong>in</strong>imum wage is fixed at an hourlyrate. For purposes of comparison, <strong>the</strong>se hourly or weekly rates have been converted to a monthly rate, us<strong>in</strong>gfactors supplied by <strong>the</strong> countries concerned10. Eurostat 2013. European Union Labour Force Survey – annual results 201211. Ernst & Young 2014. <strong>UK</strong> Attractiveness Survey 201412. Von Ahn, N., Lupton, R., Greenwood, C. and Wigg<strong>in</strong>s, D., 2010. Languages, Ethnicity and Education <strong>in</strong> 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 <strong>for</strong> Bus<strong>in</strong>ess, Innovation and Skills, 2013Trade Union Membership 2012: Statistical Bullet<strong>in</strong>Industrial relationsOur flexible employment relations laws enable allparties to work toge<strong>the</strong>r towards long-term bus<strong>in</strong>essviability. Industrial action is at an historic low, comparedto <strong>the</strong> 1970s and 1980s, and more managers are nowrecognis<strong>in</strong>g <strong>the</strong> positive role that trade unions play <strong>in</strong> <strong>the</strong>workplace. 14The pay and conditions of most employees <strong>in</strong> <strong>the</strong> <strong>UK</strong>are not negotiated, as not all of <strong>the</strong> <strong>UK</strong>’s work<strong>for</strong>ce aresubject to collective barga<strong>in</strong><strong>in</strong>g. In fact, 29 percent are,fall<strong>in</strong>g to 17 percent <strong>in</strong> <strong>the</strong> private sector, 15 which is lowcompared to o<strong>the</strong>r European countries.
22 <strong>Invest</strong> <strong>in</strong> <strong>the</strong> <strong>UK</strong>: <strong>your</strong> spr<strong>in</strong>gboard <strong>for</strong> <strong>global</strong> <strong>growth</strong><strong>Invest</strong> <strong>in</strong> <strong>the</strong> <strong>UK</strong>: <strong>your</strong> spr<strong>in</strong>gboard <strong>for</strong> <strong>global</strong> <strong>growth</strong>23O<strong>the</strong>r taxesR&D tax credits are ano<strong>the</strong>r <strong>for</strong>m of corporation taxrelief that can reduce <strong>your</strong> tax bill if you undertakeR&D activity <strong>in</strong> <strong>the</strong> <strong>UK</strong>. There are different schemesaccord<strong>in</strong>g to company size. R&D credits reduce <strong>the</strong> costof qualify<strong>in</strong>g R&D expenditure by around 45 percent <strong>for</strong> aprofit-mak<strong>in</strong>g SME, 33 percent <strong>for</strong> a loss-mak<strong>in</strong>g SME andaround eight percent <strong>for</strong> a large company.We offer large companies an ‘above <strong>the</strong> l<strong>in</strong>e’ (ATL)credit giv<strong>in</strong>g a taxable ten percent credit <strong>for</strong> qualify<strong>in</strong>gR&D activity. The scheme also <strong>in</strong>cludes a ‘superdeduction’,which allows companies to reduce <strong>the</strong>irtaxable profits by 130 percent of <strong>the</strong>ir qualify<strong>in</strong>g R&Dexpenditure. This super-deduction will be withdrawnby 2016 and replaced by <strong>the</strong> ATL scheme.How <strong>the</strong> ‘above <strong>the</strong> l<strong>in</strong>e’ 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 <strong>in</strong>ward <strong>in</strong>vestment cont<strong>in</strong>ues <strong>in</strong> 2014 with <strong>the</strong>production of <strong>the</strong> new Star Wars film and <strong>the</strong> sequel toAlice <strong>in</strong> Wonderland.You can also get tax relief <strong>for</strong> animation programmesand high-end television productions – creative <strong>in</strong>dustriesthat <strong>the</strong> <strong>UK</strong> also excels at. The rate of relief is set at 25percent on qualify<strong>in</strong>g production expenditure, subject to acultural test. Over £276 million was <strong>in</strong>vested <strong>in</strong> <strong>UK</strong>-basedtelevision productions between April and December 2013,<strong>in</strong>clud<strong>in</strong>g <strong>in</strong>ternational series such as Game of Thrones,Outlander, Da V<strong>in</strong>ci’s Demons and Elementary.A similar scheme <strong>for</strong> corporate tax relief came <strong>in</strong>to<strong>for</strong>ce <strong>in</strong> 2014 <strong>for</strong> <strong>the</strong> video games sector. It’s an excit<strong>in</strong>gtime <strong>for</strong> <strong>UK</strong> video gam<strong>in</strong>g; we have over 500 gamesdevelopment studios produc<strong>in</strong>g some of <strong>the</strong> biggestsell<strong>in</strong>ggames <strong>in</strong> <strong>the</strong> world, such as Grand Theft Auto,Tomb Raider and Burnout. We estimate <strong>the</strong> sector willbenefit from around £35 million a year <strong>in</strong> tax relief. 4We are <strong>in</strong>troduc<strong>in</strong>g a fourth corporation tax relief<strong>for</strong> <strong>the</strong>atre <strong>in</strong> September 2014. This will support andencourage <strong>UK</strong> <strong>the</strong>atre producers by offer<strong>in</strong>g relief at 25percent of qualify<strong>in</strong>g production expenditure <strong>for</strong> tour<strong>in</strong>gproductions and 20 percent <strong>for</strong> o<strong>the</strong>r productions.Employer social security costsEmployers <strong>in</strong> <strong>the</strong> <strong>UK</strong> pay lower socialsecurity contributions - what wecall ‘national <strong>in</strong>surance’ - than mostcountries <strong>in</strong> Europe. Our rate of 13.8percent applies to earn<strong>in</strong>gs above £153per week (2014/15).Employer social securitycosts <strong>in</strong> selected Europeancountries 2013 5France 35–46%Italy 30–35%SwedenSpa<strong>in</strong> 30.15%*Germany 18.75%<strong>UK</strong> 13.8%Ireland 10.75%**Ne<strong>the</strong>rlands 10.15%31.42% (average)* 30.15% generally with a maximum of €12,394 per employee** Earn<strong>in</strong>gs cap at €51,000Personal taxesIncome tax rates <strong>in</strong> <strong>the</strong> <strong>UK</strong> arehighly competitive with those <strong>in</strong>o<strong>the</strong>r European countries.Top <strong>in</strong>come tax rates<strong>in</strong> selected Europeancountries 6Sweden 57%41.8%Denmark 55.56%Ne<strong>the</strong>rlands 52%Spa<strong>in</strong> 52%Ireland 48%FranceGermany 45%<strong>UK</strong>45%45%Our ma<strong>in</strong> <strong>in</strong>cometax rates <strong>in</strong> 2014 are20%<strong>the</strong> basic rate on£10,000 - £41,86540%<strong>the</strong> higher rate on£41,866 - £150,00045%<strong>the</strong> top rate over£150,000Outcome: cost of R&D expenditure is reduced by 8%Source: HMT 2014Tax relief <strong>for</strong> <strong>the</strong> creative sectorOur creative economy is <strong>the</strong> largest <strong>in</strong> Europe; worth over£71 billion, it generates over £8 million every hour. 2 Weuse tax relief to support <strong>the</strong>se thriv<strong>in</strong>g <strong>in</strong>dustries. Cultureand creativity is central to our identity and <strong>global</strong> appeal,and a flow of exceptional talent cont<strong>in</strong>ues to push <strong>the</strong> <strong>UK</strong>’sworldwide <strong>in</strong>fluence <strong>in</strong> enterta<strong>in</strong>ment, <strong>the</strong> arts and media.A tax relief or tax credit is available <strong>for</strong> <strong>the</strong> productionof qualify<strong>in</strong>g films, video games, animation and high-endtelevision. If you make a film <strong>in</strong> <strong>the</strong> <strong>UK</strong> that qualifies asculturally British, or is an official co-production, you canapply <strong>for</strong> film tax relief. This offers a corporation tax creditworth up to 25 percent on <strong>the</strong> first £20 million of qualify<strong>in</strong>gproduction expenditure, and 20 percent above this figure.International film makers are flock<strong>in</strong>g to <strong>the</strong> <strong>UK</strong> as a result.<strong>Invest</strong>ment <strong>in</strong> <strong>the</strong> <strong>UK</strong> film production exceeded £1 billion <strong>in</strong>2013, 14 percent higher than 2012. 3 Eighty-one percent ofthis figure was generated by 37 major <strong>in</strong>ternational filmsmak<strong>in</strong>g <strong>the</strong> <strong>UK</strong> <strong>the</strong>ir production base, <strong>in</strong>clud<strong>in</strong>g Disney’sMuppets Most Wanted and C<strong>in</strong>derella and 20 th Century Fox’sFrankenste<strong>in</strong>.£Our creative economy is <strong>the</strong>largest <strong>in</strong> Europe; worth over£71 billion, it generates over£8 million every hourOver £276 million was<strong>in</strong>vested <strong>in</strong> <strong>UK</strong>-based televisionproductions between April andDecember 2013Film tax relief offers acorporation tax credit worthup to 25 percent on <strong>the</strong> first£20 million of qualify<strong>in</strong>gproduction expenditure, and20 percent above this figurePensionsOur state pension provision is complemented by amodernised private workplace pension system, <strong>the</strong> largest<strong>in</strong> Europe and collectively worth <strong>in</strong> excess of £1.6 trillion. 7 Inresponse to longer life expectancy and a fall <strong>in</strong> <strong>the</strong> number ofpeople sav<strong>in</strong>g <strong>for</strong> retirement, we are <strong>in</strong>troduc<strong>in</strong>g automaticenrolment <strong>in</strong>to workplace pensions. Due <strong>for</strong> completion <strong>in</strong>2018, it will mean millions more people are sav<strong>in</strong>g privately<strong>for</strong> <strong>the</strong>ir retirement.We are also giv<strong>in</strong>g people more choice over <strong>the</strong> use of<strong>the</strong>ir pension sav<strong>in</strong>gs. From April 2015, savers will get totalfreedom over how <strong>the</strong>y withdraw pension money - <strong>for</strong>example <strong>the</strong>y could take it all as lump sum, draw it down overtime, or buy an annuity that guarantees an annual <strong>in</strong>come.You and <strong>your</strong> <strong>UK</strong>-based staff can enjoy this same flexibility,even if only based here <strong>for</strong> <strong>the</strong> short term.You’ll f<strong>in</strong>d this enrolment system simple to adm<strong>in</strong>ister.Bas<strong>in</strong>g <strong>your</strong> bus<strong>in</strong>ess <strong>in</strong> <strong>the</strong> <strong>UK</strong> does not mean hav<strong>in</strong>gto set up <strong>your</strong> own company pension scheme, althoughyou are free to do so. You can enrol employees <strong>in</strong>to anysuitable scheme, or use <strong>the</strong> National Employment Sav<strong>in</strong>gsTrust (NEST) – a low-cost pension provider designedspecifically to support automatic enrolment. Whileemployers must enrol eligible staff to an appropriatescheme, ongo<strong>in</strong>g membership is not compulsory <strong>for</strong>employees – <strong>the</strong>y can opt out if <strong>the</strong>y wish.£
24 <strong>Invest</strong> <strong>in</strong> <strong>the</strong> <strong>UK</strong>: <strong>your</strong> spr<strong>in</strong>gboard <strong>for</strong> <strong>global</strong> <strong>growth</strong><strong>Invest</strong> <strong>in</strong> <strong>the</strong> <strong>UK</strong>: <strong>your</strong> spr<strong>in</strong>gboard <strong>for</strong> <strong>global</strong> <strong>growth</strong>25Indirect taxesF<strong>in</strong>ance and Bank<strong>in</strong>gValue Added Tax (VAT)VAT is <strong>the</strong> pr<strong>in</strong>cipal <strong>in</strong>direct tax andapplies <strong>in</strong> all EU countries. The <strong>UK</strong> rateof 20 percent is <strong>in</strong> l<strong>in</strong>e with <strong>the</strong> averageEU standard rate and applies to bothgoods and services. VAT is primarilya tax on consumption, so as a generalrule it will not affect <strong>your</strong> bus<strong>in</strong>ess ifnot an end consumer. Bus<strong>in</strong>esses thatare taxable <strong>for</strong> VAT are normally able torecover any VAT <strong>in</strong>curred.The <strong>UK</strong> is unique <strong>in</strong> hav<strong>in</strong>g a broad rangeof zero-rate supplies, mean<strong>in</strong>g that VATon <strong>the</strong> supply is zero percent but <strong>in</strong>putVAT can still be reclaimed. Examples ofgoods and services that may be zerorated(depend<strong>in</strong>g on <strong>the</strong> product and<strong>the</strong> circumstances of <strong>the</strong> sale) are somefood categories, books and newspapers,children’s clo<strong>the</strong>s and shoes.The bigpictureOur highlycompetitiveoverall taxposition is clearwhen corporate,<strong>in</strong>come, socialsecurity and<strong>in</strong>direct taxesare comparedSources:1. The World Bank. Do<strong>in</strong>g Bus<strong>in</strong>ess 20142. Department <strong>for</strong> 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 GuideImport<strong>in</strong>g and export<strong>in</strong>gYour <strong>UK</strong>-based bus<strong>in</strong>ess can takeadvantage of <strong>the</strong> EU’s extensivesystem of Free Trade Agreementsand o<strong>the</strong>r preferential arrangements.There is no duty to pay if you importfrom or export to ano<strong>the</strong>r EUcountry. Regulations will vary if youare export<strong>in</strong>g to a non-EU country,but <strong>in</strong> many cases preferentialarrangements are <strong>in</strong> place that meanyou benefit from reduced or nil ratesof duty. If no such arrangementsexist, you might be eligible <strong>for</strong> oneof many duty relief schemes. Ourtax authority, HM Revenue andCustoms, provides an excise andcustoms telephone advice l<strong>in</strong>e andextensive onl<strong>in</strong>e guidance to helpyou understand <strong>the</strong>se issues.International Tax Comparison<strong>UK</strong> exportstrengthSpa<strong>in</strong> 30 21 52 30.15Italy 31.4 22 43 32.5Germany 29.61945 18.75Ne<strong>the</strong>rlands 25 21 52 10.15<strong>UK</strong> 21 20 45 13.8Ireland 12.52348 10.75United States 40 4 39.6 6.2Our EU trad<strong>in</strong>gadvantages help tomake <strong>the</strong> <strong>UK</strong> one of<strong>the</strong> top ten biggestexporters of goodsand services <strong>in</strong> <strong>the</strong>world. 8 Our exports<strong>in</strong>creased to a record£506 billion <strong>in</strong> 2013. 9We are also <strong>the</strong>second largest <strong>global</strong>onl<strong>in</strong>e retail exporterafter <strong>the</strong> USA. 10France 33.33 20 45 40.5S<strong>in</strong>gapore 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 o<strong>the</strong>r taxes not levied on <strong>in</strong>come.Income Tax Rate selected is <strong>the</strong> 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 <strong>in</strong> New York is used as a proxy. Employer social security rates <strong>for</strong> France and Italy are set at <strong>the</strong> mid-po<strong>in</strong>t of <strong>the</strong> exist<strong>in</strong>g range.Source: Data from Ernst & Young 2013-14 The Worldwide Personal Guide, KPMG Global Tax Rates Onl<strong>in</strong>e, KPMG 2014. Individual <strong>in</strong>come tax rates table (onl<strong>in</strong>e), HMRC data6. KPMG 2014. Individual <strong>in</strong>come tax rates table (onl<strong>in</strong>e). 2014 rates where available – o<strong>the</strong>rwise 20137. IMA 2013. Asset Management <strong>in</strong> <strong>the</strong> <strong>UK</strong> 2012-13: <strong>the</strong> IMA Annual Survey8. Central Intelligence Agency 2014. The World Factbook: country comparison – exports9. Office <strong>for</strong> National Statistics 2014. Statistical bullet<strong>in</strong>: <strong>UK</strong> Trade, April 201410. British Retail Consortium and Google 2014The <strong>UK</strong> is Europe’s lead<strong>in</strong>g f<strong>in</strong>ancial services hub. Secure, stable yet constantly <strong>in</strong>novat<strong>in</strong>g, <strong>the</strong> sectorcreates a wealth of new bus<strong>in</strong>ess opportunities. Foreign companies <strong>in</strong>vested a cumulative £40 billion <strong>in</strong>our f<strong>in</strong>ancial services sector between 2008 and 2011 - close to a third of total <strong>for</strong>eign direct <strong>in</strong>vestment,and more than any o<strong>the</strong>r sector <strong>in</strong> <strong>the</strong> <strong>UK</strong>.<strong>UK</strong> f<strong>in</strong>ance: <strong>the</strong> headl<strong>in</strong>esLondon competes withNew York <strong>for</strong> <strong>the</strong> title of<strong>the</strong> world’s number onef<strong>in</strong>ancial centreThe largest centre <strong>for</strong>cross-border bank<strong>in</strong>gAccounts <strong>for</strong> 41percent of <strong>global</strong><strong>for</strong>eign exchangeLargest exporter off<strong>in</strong>ancial and relatedprofessional services<strong>in</strong> <strong>the</strong> worldEurope’s premier centre<strong>for</strong> Islamic f<strong>in</strong>anceFastest-grow<strong>in</strong>gf<strong>in</strong>ancial technologysector <strong>in</strong> <strong>the</strong> world“It is <strong>in</strong>arguable thatLondon is <strong>the</strong> lead<strong>in</strong>goffshore renm<strong>in</strong>bi centre<strong>in</strong> Europe. The trendsare strong... it (London)is build<strong>in</strong>g on <strong>the</strong>strengths it has.”- Wenjian Fang, chief executiveof Bank of Ch<strong>in</strong>a <strong>UK</strong>F<strong>in</strong>ancial and related professionalservices contributed £174 billion to<strong>the</strong> <strong>UK</strong> economy <strong>in</strong> 2012, a third ofwhich came from exports. The sectorgenerated a record trade surplusof £61 billion <strong>in</strong> 2013, mak<strong>in</strong>g <strong>the</strong><strong>UK</strong> <strong>the</strong> world’s lead<strong>in</strong>g exporter of<strong>the</strong>se services. 1 This was double thatof <strong>the</strong> next largest trade surplusesrecorded by Switzerland, <strong>the</strong> USA andLuxembourg.London is <strong>the</strong> beat<strong>in</strong>g heart of ourthriv<strong>in</strong>g f<strong>in</strong>ance <strong>in</strong>dustry. Our capitalvies with New York <strong>for</strong> <strong>the</strong> status of<strong>the</strong> world’s lead<strong>in</strong>g f<strong>in</strong>ancial centre,with <strong>the</strong> Global F<strong>in</strong>ancial CentresIndex barely able to separate <strong>the</strong>two cities <strong>in</strong> its assessment of <strong>the</strong>ircompetitive strengths.Two centres that have pushed <strong>the</strong>irway up this <strong>in</strong>dex <strong>in</strong> recent years- Hong Kong and S<strong>in</strong>gapore – areexamples of f<strong>in</strong>ancial centres that havemodelled <strong>the</strong>mselves on <strong>UK</strong> practices.Global F<strong>in</strong>ancial CentresIndex 15 (March 2014)Rank<strong>in</strong>gF<strong>in</strong>ancial centreIndexscore/10001 New York 7862 London 7843 Hong Kong 7614 S<strong>in</strong>gapore 7515 Zurich 7306 Tokyo 7227 Seoul 7188 Boston 7159 Geneva 71310 San Francisco 711Bank<strong>in</strong>gThe <strong>UK</strong> is <strong>the</strong> largest centre <strong>for</strong>cross-border bank<strong>in</strong>g with 18percent of <strong>the</strong> outstand<strong>in</strong>g value of<strong>in</strong>ternational bank lend<strong>in</strong>g at <strong>the</strong>end of 2012. We are also <strong>the</strong> largestcentre <strong>for</strong> cross-border borrow<strong>in</strong>g.The <strong>UK</strong>’s bank<strong>in</strong>g sector is truly<strong>in</strong>ternational <strong>in</strong> nature. Over 250<strong>for</strong>eign banks operate <strong>in</strong> London.Our banks’ assets are <strong>the</strong> fourthlargest <strong>in</strong> <strong>the</strong> world beh<strong>in</strong>d Ch<strong>in</strong>a, <strong>the</strong>USA and Japan. International bankshold nearly half of <strong>the</strong> <strong>UK</strong>’s bank<strong>in</strong>gsector assets.The monetary and f<strong>in</strong>ancial stabilityof our system is ma<strong>in</strong>ta<strong>in</strong>ed by <strong>the</strong>Bank of England, <strong>the</strong> <strong>in</strong>dependentcentral bank of <strong>the</strong> <strong>UK</strong>.<strong>Invest</strong>ors can access a wide varietyof f<strong>in</strong>ance providers and options.The World Bank rates <strong>the</strong> <strong>UK</strong> as <strong>the</strong>jo<strong>in</strong>t easiest place <strong>in</strong> <strong>the</strong> world toget credit. 2Foreign currency trad<strong>in</strong>g is <strong>the</strong>cornerstone of <strong>in</strong>ternational trade.The <strong>UK</strong> accounted <strong>for</strong> 41 percentof <strong>global</strong> <strong>for</strong>eign exchange (<strong>for</strong>ex)trad<strong>in</strong>g <strong>in</strong> April 2013, well aheadof <strong>the</strong> USA (19 percent), Japan (6percent) and S<strong>in</strong>gapore (6 percent).Twice as many US dollars aretraded on <strong>the</strong> <strong>for</strong>ex market <strong>in</strong> <strong>the</strong><strong>UK</strong> than <strong>in</strong> <strong>the</strong> USA, and more thantwice as many euros are traded <strong>in</strong><strong>the</strong> <strong>UK</strong> than <strong>in</strong> all <strong>the</strong> euro-areacountries comb<strong>in</strong>ed. Internationalbus<strong>in</strong>esses are attracted by <strong>the</strong>stability that this huge marketprovides, and <strong>the</strong> diversity ofproviders to meet every need.
26 <strong>Invest</strong> <strong>in</strong> <strong>the</strong> <strong>UK</strong>: <strong>your</strong> spr<strong>in</strong>gboard <strong>for</strong> <strong>global</strong> <strong>growth</strong><strong>Invest</strong> <strong>in</strong> <strong>the</strong> <strong>UK</strong>: <strong>your</strong> spr<strong>in</strong>gboard <strong>for</strong> <strong>global</strong> <strong>growth</strong>27Largest bank<strong>in</strong>g centres (assets, $billion, 2011/12)International bank lend<strong>in</strong>g (% share of total, end-2012)Innovation <strong>in</strong> f<strong>in</strong>ancial servicesTechnology is trans<strong>for</strong>m<strong>in</strong>g <strong>the</strong> f<strong>in</strong>ancial services<strong>in</strong>dustry – and we lead <strong>the</strong> way. Our expertise <strong>in</strong> ‘f<strong>in</strong>tech’has helped make <strong>the</strong> <strong>UK</strong> <strong>the</strong> biggest e-commercemarket <strong>in</strong> Europe 5 and <strong>the</strong> second largest data centremarket <strong>in</strong> <strong>the</strong> world. Management consult<strong>in</strong>g firmAccenture reports that <strong>in</strong>vestment <strong>in</strong> f<strong>in</strong>tech is grow<strong>in</strong>gfaster <strong>in</strong> <strong>the</strong> <strong>UK</strong> and Ireland than anywhere else <strong>in</strong><strong>the</strong> world. The volume of deals, mostly connected toLondon, has grown at an annualised rate of 74 percents<strong>in</strong>ce 2008, compared with 27 percent <strong>global</strong>ly and 13percent <strong>in</strong> Silicon Valley. London alone accounts <strong>for</strong> 53percent of total European <strong>in</strong>vestment <strong>in</strong> <strong>the</strong> sector. 616,20014,33612,59310,9508,9425,1043,611Ch<strong>in</strong>a US Japan <strong>UK</strong> France Germany Canada* Total assets of commercial banks, <strong>in</strong>clud<strong>in</strong>g subsidiariesSource: IMF, TheCity<strong>UK</strong> estimates39Borrow<strong>in</strong>gLend<strong>in</strong>g19 <strong>UK</strong>1814US115Japan115 Germany88France8532Ne<strong>the</strong>rlandsHong KongLuxembourgO<strong>the</strong>rs43334Source: BIS“London has emerged as <strong>the</strong>f<strong>in</strong>tech capital of Europe.”- The Boom <strong>in</strong> Global F<strong>in</strong>tech <strong>Invest</strong>ment: A new<strong>growth</strong> opportunity <strong>for</strong> London, Accenture 2012Stock exchange list<strong>in</strong>gList<strong>in</strong>g <strong>in</strong> London allows you to tap <strong>in</strong>to one of<strong>the</strong> deepest pools of <strong>in</strong>ternational equity assets<strong>in</strong> <strong>the</strong> world.The London Stock Exchange (LSE) is <strong>the</strong> oldest and fourthlargeststock exchange <strong>in</strong> <strong>the</strong> world. It is also <strong>the</strong> most<strong>in</strong>ternational, 3 with almost 3,100 companies from over 70countries. You can list on a number of different stock exchangesdesigned to cater <strong>for</strong> different needs. Examples <strong>in</strong>clude:• The LSE’s Ma<strong>in</strong> Market, Europe’s largest list<strong>in</strong>gs market<strong>for</strong> established companies.• The LSE’s Alternative <strong>Invest</strong>ment Market (AIM), a lead<strong>in</strong>g<strong>growth</strong> market and popular choice <strong>for</strong> <strong>in</strong>ternationalcompanies <strong>for</strong> its capital-and profile-rais<strong>in</strong>g opportunities.• London Metal Exchange, where over 80 percent of <strong>the</strong>world’s non-ferrous metal futures are traded.• ICE Futures Europe, <strong>the</strong> largest regulated energy futuresexchange <strong>in</strong> Europe, and <strong>the</strong> second largest <strong>in</strong> <strong>the</strong> world.• techMARK and techMARK mediscience are speciallydeveloped segments of <strong>the</strong> Ma<strong>in</strong> Market designed <strong>for</strong>companies at <strong>the</strong> <strong>for</strong>efront of <strong>in</strong>novative technology.2013 was <strong>the</strong> London StockExchange’s best year <strong>for</strong> flotationss<strong>in</strong>ce 2007, with 105 companiesrais<strong>in</strong>g a comb<strong>in</strong>ed £15.7 billion from<strong>in</strong>itial public offer<strong>in</strong>gs (IPOs). This<strong>in</strong>cluded 36 technology IPOs, rais<strong>in</strong>ga comb<strong>in</strong>ed £1 billion.International <strong>in</strong>fluence:two examplesOur status as a lead<strong>in</strong>g <strong>global</strong> f<strong>in</strong>ancialcentre allows us to create <strong>in</strong>ternationalopportunities that o<strong>the</strong>rs cannot match.Islamic f<strong>in</strong>anceBy open<strong>in</strong>g up <strong>the</strong> market <strong>for</strong> Islamic products <strong>the</strong><strong>UK</strong> is <strong>the</strong> lead<strong>in</strong>g Western country and Europe’spremier centre <strong>for</strong> Islamic f<strong>in</strong>ance, with US$19billion of reported assets. 4 Six banks offer fullySharia compliant services and at least 20 o<strong>the</strong>rf<strong>in</strong>ancial firms offer Sharia compliant w<strong>in</strong>dows.In 2013 we announced plans to become <strong>the</strong> firstcountry outside <strong>the</strong> Islamic world to issue anIslamic bond. The launch of a £200 million Shariacompliant‘sukuk’ <strong>in</strong> 2014 opens up a fur<strong>the</strong>r route<strong>for</strong> <strong>in</strong>vestment <strong>in</strong> <strong>in</strong>frastructure projects.RMB bus<strong>in</strong>ess hubLondon is established as <strong>the</strong> Western hub <strong>for</strong>offshore renm<strong>in</strong>bi (RMB) trad<strong>in</strong>g, and agreementsare <strong>in</strong> place that lay <strong>the</strong> groundwork <strong>for</strong> London tobecome <strong>the</strong> Western hub <strong>for</strong> <strong>in</strong>vestment <strong>in</strong>to Ch<strong>in</strong>atoo. Not only is <strong>the</strong> flow of RMB funds throughLondon expected to <strong>in</strong>crease, but do<strong>in</strong>g bus<strong>in</strong>ess <strong>in</strong>Ch<strong>in</strong>a will become easier <strong>for</strong> <strong>UK</strong>-based companies.Almost two-thirds of all RMB payments outsideCh<strong>in</strong>a and Hong Kong now take place <strong>in</strong> London and28 percent of all <strong>in</strong>ternational RMB payments aremade <strong>in</strong> <strong>the</strong> <strong>UK</strong>, <strong>the</strong> most outside Hong Kong andma<strong>in</strong>land Ch<strong>in</strong>a.Access to f<strong>in</strong>anceA new bus<strong>in</strong>ess bank tosupport smaller bus<strong>in</strong>essesSmaller bus<strong>in</strong>esses need f<strong>in</strong>ance markets to work <strong>for</strong> <strong>the</strong>mif <strong>the</strong>y are to act as drivers of <strong>in</strong>novation and economicrecovery. Access to f<strong>in</strong>ance has not been easy <strong>for</strong> smallercompanies <strong>in</strong> recent years, with a lack of diversity off<strong>in</strong>anc<strong>in</strong>g options and a reluctance to lend to certa<strong>in</strong> typesof bus<strong>in</strong>esses.We have created a British Bus<strong>in</strong>ess Bank to tackle <strong>the</strong>seissues, a state-backed economic development bankmanag<strong>in</strong>g £3.9 billion of <strong>UK</strong> Government funds to createmore efficient and smaller bus<strong>in</strong>ess-friendly f<strong>in</strong>ancemarkets. Work<strong>in</strong>g on a commercial basis with over 70partners, <strong>the</strong> British Bus<strong>in</strong>ess Bank uses governmentfund<strong>in</strong>g and targeted guarantees to encourage <strong>the</strong> privatesector to <strong>in</strong>crease lend<strong>in</strong>g and <strong>in</strong>vestment. Twenty fivethousand <strong>UK</strong>-based bus<strong>in</strong>esses were benefit<strong>in</strong>g frombus<strong>in</strong>ess bank solutions at <strong>the</strong> end of 2013. 7The world’s oldest export credit agency.<strong>UK</strong> Export F<strong>in</strong>ance (<strong>UK</strong>EF) has supported export<strong>in</strong>g <strong>UK</strong>basedcompanies <strong>for</strong> nearly a century, offer<strong>in</strong>g solutions to<strong>the</strong> f<strong>in</strong>ancial risks of do<strong>in</strong>g bus<strong>in</strong>ess abroad <strong>for</strong> companiesof every size. Recent enhancements to this support <strong>in</strong>cludea £3 billion direct lend<strong>in</strong>g capability to make competitivef<strong>in</strong>ance available <strong>for</strong> buyers of <strong>UK</strong> goods and services, and abroaden<strong>in</strong>g of <strong>UK</strong>EF’s remit to allow it to support exports ofgoods sold on short credit terms.Sources:1. TheCity<strong>UK</strong> January 2014. Key Facts about <strong>UK</strong> F<strong>in</strong>ancial and Related Professional Services2. World Bank 2013. Do<strong>in</strong>g Bus<strong>in</strong>ess 2014: Understand<strong>in</strong>g Regulations <strong>for</strong> Small and Medium-Size Enterprises3. World Stock Exchanges.net 2014. List of stock exchanges around <strong>the</strong> world. Available fromhttp://www.world-stock-exchanges.net/4. TheCity<strong>UK</strong> 2013. Key facts about <strong>the</strong> <strong>UK</strong> as an <strong>in</strong>ternational f<strong>in</strong>ancial centre5. Ecommerce Europe 2013. The Europe B2C ecommerce report 20136. Accenture 2014. The Boom <strong>in</strong> Global F<strong>in</strong>tech <strong>Invest</strong>ment: a new <strong>growth</strong> opportunity <strong>for</strong> London7. British Bus<strong>in</strong>ess Bank 2014 (onl<strong>in</strong>e)The world’s first <strong>in</strong>vestment bankdedicated to green<strong>in</strong>g <strong>the</strong> economyWe have set up <strong>the</strong> <strong>UK</strong> Green <strong>Invest</strong>ment Bank (GIB) withfund<strong>in</strong>g of £3.8 billion to <strong>in</strong>vest <strong>in</strong> <strong>in</strong>novative, environmentallyfriendly projects that lack support from private markets. GIB<strong>in</strong>vests <strong>in</strong> <strong>UK</strong> projects which are both green and commercial <strong>in</strong>areas such as offshore w<strong>in</strong>d, energy efficiency and wasteand bioenergy.Improv<strong>in</strong>g <strong>the</strong> supply of bus<strong>in</strong>ess f<strong>in</strong>ance is one of <strong>the</strong> fivestrands of our Industrial Strategy - a long-term, whole-ofgovernmentapproach to support economic <strong>growth</strong>. You canf<strong>in</strong>d out more on page 49.<strong>UK</strong>TI F<strong>in</strong>ancialServices OrganisationThe <strong>UK</strong>TI F<strong>in</strong>ancial Services Organisation (FSO)is available to help you f<strong>in</strong>d <strong>the</strong> right <strong>in</strong>vestmentopportunities <strong>in</strong> <strong>the</strong> <strong>UK</strong> and expand <strong>your</strong>bus<strong>in</strong>ess <strong>in</strong>ternationally. You can draw on <strong>the</strong>ir<strong>in</strong>-depth <strong>in</strong>dustry expertise, teams of specialistsand extensive networks across <strong>the</strong> globe. TheFSO also focuses on key <strong>UK</strong> strengths, <strong>in</strong>clud<strong>in</strong>g<strong>in</strong>vestment management, <strong>in</strong>surance, f<strong>in</strong>ancialtechnology, Islamic f<strong>in</strong>ance and RMB trad<strong>in</strong>g.For more <strong>in</strong><strong>for</strong>mation contact FSO by email:enquiries@ukti-<strong>in</strong>vest.com or telephone:+44 (0)207 215 5152.
28 <strong>Invest</strong> <strong>in</strong> <strong>the</strong> <strong>UK</strong>: <strong>your</strong> spr<strong>in</strong>gboard <strong>for</strong> <strong>global</strong> <strong>growth</strong><strong>Invest</strong> <strong>in</strong> <strong>the</strong> <strong>UK</strong>: <strong>your</strong> spr<strong>in</strong>gboard <strong>for</strong> <strong>global</strong> <strong>growth</strong>29Property and Plann<strong>in</strong>gIf you need to build or extend premises, <strong>the</strong> simplicity of our plann<strong>in</strong>g process may surprise you.The World Bank rates our process <strong>for</strong> obta<strong>in</strong><strong>in</strong>g construction permits (<strong>in</strong>clud<strong>in</strong>g ga<strong>in</strong><strong>in</strong>g plann<strong>in</strong>gpermission) as one of <strong>the</strong> most efficient <strong>in</strong> <strong>the</strong> EU - higher than Switzerland, <strong>the</strong> Ne<strong>the</strong>rlands,France and Ireland. 1<strong>UK</strong> property: <strong>the</strong> headl<strong>in</strong>esA national plann<strong>in</strong>gpolicy with apresumption <strong>in</strong>favour of susta<strong>in</strong>abledevelopmentMore certa<strong>in</strong>ty overplann<strong>in</strong>g applications,less risk of wast<strong>in</strong>gtime and moneyChoose <strong>the</strong> <strong>UK</strong> as <strong>the</strong> place to startor expand <strong>your</strong> bus<strong>in</strong>ess and youwill f<strong>in</strong>d a great place to live andwork <strong>in</strong> our dynamic and transparentproperty market. The <strong>UK</strong> is a land ofcontrast<strong>in</strong>g landscapes. We have someof <strong>the</strong> world’s great metropolises,<strong>in</strong>clud<strong>in</strong>g three of Europe’s ten mostpopulated urban areas - London,Manchester and Birm<strong>in</strong>gham. Yet allFour iconic capital citiesof our cities lie with<strong>in</strong> easy reach ofbeautiful countryside - all with<strong>in</strong> an arealess than half that of France.A wide range of commercial propertyoptions exists across <strong>the</strong> countrywith stable rents and flexible leasearrangements. There are no restrictionson overseas companies ei<strong>the</strong>r buy<strong>in</strong>g orrent<strong>in</strong>g property <strong>in</strong> <strong>the</strong> <strong>UK</strong>.The National Plann<strong>in</strong>gPolicy FrameworkIn 2012 we <strong>in</strong>troduced a new s<strong>in</strong>gledocument sett<strong>in</strong>g out how <strong>the</strong>plann<strong>in</strong>g system <strong>in</strong> England shouldpromote susta<strong>in</strong>able development -<strong>the</strong> National Plann<strong>in</strong>g PolicyFramework. This framework is aradically simplified statement whichplaces emphasis on clear and up-todatelocal plans. These plans are drawnup by Local Plann<strong>in</strong>g Authorities andset clear frameworks <strong>for</strong> how <strong>the</strong>irareas will develop over time.Scotland, Wales and Nor<strong>the</strong>rn Irelandare responsible <strong>for</strong> <strong>the</strong>ir own land useplann<strong>in</strong>g and <strong>the</strong>ir systems operatealong similar l<strong>in</strong>es (Nor<strong>the</strong>rn Ireland’ss<strong>in</strong>gle plann<strong>in</strong>g document takes effectfrom April 2015).At <strong>the</strong> heart of <strong>the</strong> National Plann<strong>in</strong>gPolicy Framework is a presumption <strong>in</strong>favour of susta<strong>in</strong>able development.This means if <strong>your</strong> build<strong>in</strong>g plans fitwith <strong>the</strong> Local Plan, permission shouldbe granted without delay. This plan-ledapproach has two major advantages:• A clear steer on <strong>the</strong> sort ofdevelopments likely to beapproved gives you morecerta<strong>in</strong>ty over <strong>the</strong> outcomeand less risk of wast<strong>in</strong>g timeand money on lengthy orunsuccessful applications.• Faster decision-mak<strong>in</strong>g.You might also benefit from ‘permitteddevelopment rights’ that allow <strong>the</strong>conversion of exist<strong>in</strong>g agricultural, retailand commercial build<strong>in</strong>gs without <strong>the</strong>need to submit a plann<strong>in</strong>g application.This new process isalready mak<strong>in</strong>g an impact:> 3/4of major projects are now decidedon time (with<strong>in</strong> 13 weeks) and <strong>the</strong>majority of smaller projects aredecided with<strong>in</strong> eight weeks withapproval rates at 88 percent 6> 178,000new homes were approved onmajor residential schemes <strong>in</strong>England dur<strong>in</strong>g 2013/14, 23percent up on <strong>the</strong> previous year 7A more efficientplann<strong>in</strong>g processthan Switzerland, <strong>the</strong>Ne<strong>the</strong>rlands, Franceand Ireland76 percent of majorbuild<strong>in</strong>g projectsdecided with<strong>in</strong> 13 weeksFaster applicationprocess <strong>for</strong> major<strong>in</strong>frastructureprojects with a 94percent consent rateDesignated areaswith simpler andmore flexible plann<strong>in</strong>gprocessesLondon is <strong>the</strong> <strong>UK</strong>’s capital city and<strong>the</strong> largest <strong>in</strong> Europe, a world with<strong>in</strong>a city where around 230 languagesare spoken. With four UNESCOWorld Heritage Sites and <strong>the</strong> crownas <strong>the</strong> shopp<strong>in</strong>g capital of <strong>the</strong>world, 2 London attracted a record16.8 million <strong>in</strong>ternational visitors <strong>in</strong>2013, a 43 percent <strong>in</strong>crease over tenyears. 3 It competes with New York<strong>for</strong> <strong>the</strong> status as <strong>the</strong> world’s lead<strong>in</strong>gf<strong>in</strong>ancial centre, and hosts Tech City,<strong>the</strong> technology cluster that <strong>in</strong>cludesgiants such as Facebook, Google,Intel and Cisco.Belfast is <strong>the</strong> capital city ofNor<strong>the</strong>rn Ireland. It was named asone of <strong>the</strong> ‘Best of <strong>the</strong> World Must-See Places’ <strong>for</strong> 2012, 4 and describedas ‘a capital that is redef<strong>in</strong><strong>in</strong>g itself<strong>in</strong> <strong>the</strong> eyes of <strong>the</strong> world’. The city is<strong>the</strong> gateway to Nor<strong>the</strong>rn Ireland’sbeautiful scenery and attractionsthat <strong>in</strong>clude <strong>the</strong> world famousGiant’s Causeway. Belfast’s economyis dom<strong>in</strong>ated by hi-tech, servicesector companies, and has a fastgrow<strong>in</strong>gcreative <strong>in</strong>dustries sector.The capital of Wales, Cardiff, has arich cultural and sport<strong>in</strong>g heritagethat helped National GeographicMagaz<strong>in</strong>e chose it as one of <strong>the</strong> tenbest places <strong>in</strong> <strong>the</strong> world to visit. 5It has more green space than anyo<strong>the</strong>r major city <strong>in</strong> <strong>the</strong> <strong>UK</strong> and ishome to Cardiff Bay, Europe’s largestwaterfront regeneration project. Thecity has a grow<strong>in</strong>g reputation <strong>in</strong> <strong>the</strong>professional and f<strong>in</strong>ancial servicessector, and has a strong biosciencescluster l<strong>in</strong>ked with Cardiff University.Ed<strong>in</strong>burgh is Scotland’s capital,and <strong>the</strong> <strong>UK</strong>’s second most populardest<strong>in</strong>ation <strong>for</strong> <strong>in</strong>ternational visitorsafter London. Ed<strong>in</strong>burgh can claimto be one of <strong>the</strong> cultural capitalsof <strong>the</strong> world – it is UNESCO’s firstCity of Literature, and hosts <strong>the</strong>world’s largest book and per<strong>for</strong>m<strong>in</strong>garts festivals. It is <strong>the</strong> <strong>UK</strong>’s secondlargest f<strong>in</strong>ancial centre and isrenowned <strong>for</strong> <strong>the</strong> quality of itsresearch base <strong>in</strong> areas that <strong>in</strong>cludestem cell research and regenerativemedic<strong>in</strong>e, biotechnology, genomicsand renewable energy.Buy<strong>in</strong>g land and propertyThe <strong>UK</strong> has one of <strong>the</strong> most active property and mortgage markets <strong>in</strong> <strong>the</strong> world. Her Majesty’sLand Registry provides <strong>the</strong> assurances you need if you <strong>in</strong>vest <strong>in</strong> property <strong>in</strong> England and Wales.Elsewhere <strong>in</strong> <strong>the</strong> <strong>UK</strong> this service is provided by Registers of Scotland and by Land and PropertyServices <strong>in</strong> Nor<strong>the</strong>rn Ireland.Land Registry has over 150 years’ experience <strong>in</strong> register<strong>in</strong>gland and property, manag<strong>in</strong>g over 23 million titles (<strong>the</strong>evidence of ownership). Its expertise is recognised worldwideand called upon to help develop registration systems <strong>in</strong>o<strong>the</strong>r countries. Land Registry’s drive to become a leader <strong>in</strong>digitised land and property services means you benefit from:• Reduced costs and process<strong>in</strong>g times as <strong>the</strong>irservices move onl<strong>in</strong>e.• More user-friendly services, <strong>in</strong>clud<strong>in</strong>g a centralisedaccess po<strong>in</strong>t <strong>for</strong> local land charge searches.Mak<strong>in</strong>g major <strong>in</strong>frastructure projects happenWe take a more centralised approach to plann<strong>in</strong>g applications<strong>for</strong> critical <strong>in</strong>frastructure developments. Decisions onprojects of national significance (<strong>in</strong>clud<strong>in</strong>g energy, transport,water and waste proposals) are made by governmentm<strong>in</strong>isters <strong>in</strong> l<strong>in</strong>e with official policy after exam<strong>in</strong>ation by ourPlann<strong>in</strong>g Inspectorate. Time limits <strong>for</strong> <strong>the</strong> whole processenable <strong>in</strong>vestors and developers to plan more effectively.We have given plann<strong>in</strong>g consent <strong>for</strong> 94 percent ofapplications <strong>for</strong> major <strong>in</strong>frastructure projects under thisprocess and <strong>in</strong> shorter timescales. 8Our new Specialist Plann<strong>in</strong>g Court also speeds up <strong>the</strong>handl<strong>in</strong>g of legal challenges to major <strong>in</strong>frastructure consents,remov<strong>in</strong>g some of <strong>the</strong> risk and uncerta<strong>in</strong>ty that can threatena m<strong>in</strong>ority of <strong>in</strong>vestment decisions.
30 <strong>Invest</strong> <strong>in</strong> <strong>the</strong> <strong>UK</strong>: <strong>your</strong> spr<strong>in</strong>gboard <strong>for</strong> <strong>global</strong> <strong>growth</strong><strong>Invest</strong> <strong>in</strong> <strong>the</strong> <strong>UK</strong>: <strong>your</strong> spr<strong>in</strong>gboard <strong>for</strong> <strong>global</strong> <strong>growth</strong>31“Receiv<strong>in</strong>g permission to construct a new nuclear power station at H<strong>in</strong>kleyPo<strong>in</strong>t C is a huge achievement… it reflects an extraord<strong>in</strong>ary level ofprofessionalism and work from EDF Energy’s plann<strong>in</strong>g team, <strong>the</strong> Plann<strong>in</strong>gInspectorate, local authorities and a wide range of stakeholders.”- V<strong>in</strong>cent de Rivaz, EDF Energy Chief Executive, at <strong>the</strong> time EDF Energy ga<strong>in</strong>ed plann<strong>in</strong>g consent <strong>for</strong>a new Nuclear Power Station at H<strong>in</strong>kley Po<strong>in</strong>t C with<strong>in</strong> 17 months of submitt<strong>in</strong>g application to <strong>the</strong>Plann<strong>in</strong>g Inspectorate.Growth-boost<strong>in</strong>g areasWe have given certa<strong>in</strong> areas of <strong>the</strong> <strong>UK</strong> greater flexibility to take action needed to create jobsand economic <strong>growth</strong>. These are great places to locate a bus<strong>in</strong>ess – you benefit from a range ofpractical support, <strong>in</strong>clud<strong>in</strong>g simplified plann<strong>in</strong>g procedures.Local Enterprise Partnerships(LEPs) are partnerships betweenlocal authorities and bus<strong>in</strong>esses thatdecide on local economic prioritiesand <strong>in</strong>frastructure needs. Thereare 39 LEPs across England, allwith different offers to <strong>in</strong>vestorsdepend<strong>in</strong>g on local <strong>in</strong>dustry sectorstrengths.Enterprise Zones offer a widerange of support to help establishand expand <strong>your</strong> bus<strong>in</strong>ess andcreate jobs. Their simplified plann<strong>in</strong>gapplication process <strong>in</strong>cludes LocalDevelopment Orders, used to grantautomatic plann<strong>in</strong>g permission <strong>for</strong>specified types of development.You can access similar benefits <strong>in</strong>Scotland’s four Enterprise Areas.These are focused on specificsectors (<strong>in</strong>clud<strong>in</strong>g life sciences, lowcarbon/renewables and generalmanufactur<strong>in</strong>g) and based <strong>in</strong> 14strategic locations across <strong>the</strong> country.City Deals empower cities to takelocal control of <strong>the</strong>ir economicopportunities and challenges. Thereare 28 cities <strong>in</strong> England with dealsplanned or <strong>in</strong> place, giv<strong>in</strong>g <strong>the</strong>mnew powers <strong>in</strong> exchange <strong>for</strong> greaterresponsibility to stimulate and supporteconomic <strong>growth</strong> <strong>in</strong> <strong>the</strong>ir area.By locat<strong>in</strong>g <strong>in</strong> one of <strong>the</strong> 31Enterprise Zones <strong>in</strong> England andWales you can also benefit from:F<strong>in</strong>ancial benefitsYou could claim up to 100 percentbus<strong>in</strong>ess rates relief (worth up to£275,000 over a five-year period).A bus<strong>in</strong>ess-ready<strong>in</strong>frastructureThe zones have access to goodtransport l<strong>in</strong>ks and superfastbroadband.An on-site customerand supply baseMany bus<strong>in</strong>esses chooseEnterprise Zones that can provide<strong>the</strong> goods and services <strong>the</strong>y need,mean<strong>in</strong>g <strong>in</strong>creased sales andreduced distribution costs.Long-term local<strong>in</strong>vestmentAll bus<strong>in</strong>ess rates <strong>growth</strong>generated with<strong>in</strong> a zone <strong>for</strong> aperiod of at least 25 years willbe re<strong>in</strong>vested to support localeconomic <strong>growth</strong>.Case studiesEnterprise Zones<strong>in</strong> actionAt Alconbury Enterprise Zonea jo<strong>in</strong>ed-up approach to plann<strong>in</strong>gmeant that <strong>the</strong> Local Plann<strong>in</strong>gAuthority was able to approve<strong>the</strong> Zone’s award-w<strong>in</strong>n<strong>in</strong>g smallbus<strong>in</strong>ess <strong>in</strong>cubator <strong>in</strong> just 37days, giv<strong>in</strong>g a major boost to<strong>in</strong>novation <strong>in</strong> <strong>the</strong> area.City Deals <strong>in</strong> actionLeeds City Region Deal <strong>in</strong>cludes:• £1.4 billion to improve publictransport, roads and o<strong>the</strong>r<strong>in</strong>frastructure.• A new 14-24 apprenticeshipsacademy to meet <strong>the</strong> skillsneeds of local young peopleand employers.• Creat<strong>in</strong>g 15,000 newapprenticeships.• Ultra-fast broadband <strong>for</strong>88,000 homes and over16,000 bus<strong>in</strong>esses.Jo<strong>in</strong> a clusterClusters of bus<strong>in</strong>esses from <strong>the</strong> same orcomplementary <strong>in</strong>dustry sectors havecome toge<strong>the</strong>r as centres of excellenceand <strong>in</strong>novation across <strong>the</strong> <strong>UK</strong>.Locat<strong>in</strong>g <strong>your</strong> bus<strong>in</strong>ess <strong>in</strong> a relevant<strong>in</strong>dustry cluster could help you to:Access a larger poolof skilled labourImprove <strong>your</strong>supply cha<strong>in</strong>sReduce research anddevelopment (R&D) costsby shar<strong>in</strong>g facilitiesExchange knowledgeand ideas with specialists<strong>in</strong> <strong>your</strong> sectorSources:1. World Bank 2013. Do<strong>in</strong>g Bus<strong>in</strong>ess 2014: Understand<strong>in</strong>g Regulations <strong>for</strong> Small and Medium-SizeEnterprises2. Centre <strong>for</strong> Retail Research 2011. World Shopp<strong>in</strong>g Capitals 2011 Survey3. ONS 2013. Travel Trends, 2013 release4. National Geographic Traveler5. National Geographic 20116. Department <strong>for</strong> Communities and Local Government June 2014. Plann<strong>in</strong>g Applications:January to March 2014, England7. Home Builders Federation New Hous<strong>in</strong>g Pipel<strong>in</strong>e Report June 2014: January to March 20148. Figure correct and end April 2014; 17 out of 18 applications <strong>for</strong> Nationally SignificantInfrastructure projects that have reached <strong>the</strong> decision stage have been approved9. ADS Group 2014Examples of our thriv<strong>in</strong>gbus<strong>in</strong>ess clustersDigital technologyThere are centres ofexcellence <strong>in</strong> digitaltechnology <strong>in</strong> areas suchas Cambridge, East London(Tech City), Manchester,Glasgow, Bristol, Malvernand Sunderland.BiomedicalIn <strong>the</strong> biomedical sector,<strong>the</strong> Ox<strong>for</strong>d, Cambridge andLondon ‘triangle’ houses<strong>the</strong> <strong>UK</strong>’s largest cluster of<strong>in</strong>novation and <strong>in</strong>dustryexpertise.AutomotiveThe lead<strong>in</strong>g automotivecluster <strong>in</strong> <strong>the</strong> <strong>UK</strong> is <strong>in</strong> <strong>the</strong>West Midlands, but <strong>the</strong>rehas also been major <strong>for</strong>eign<strong>in</strong>vestment <strong>in</strong> o<strong>the</strong>r areas<strong>in</strong>clud<strong>in</strong>g Sunderland,Ellesmere Port <strong>in</strong> Merseyside,Burnaston <strong>in</strong> Derbyshire,Sw<strong>in</strong>don, Wolverhamptonand <strong>the</strong> Sheffield City RegionEnterprise Zone.AerospaceOur aerospace <strong>in</strong>dustry is<strong>the</strong> second largest <strong>in</strong> <strong>the</strong>world. 9 There are importantclusters <strong>in</strong> several regions ofEngland but also <strong>in</strong> Prestwickand Glasgow <strong>in</strong> Scotland,Broughton <strong>in</strong> Wales andBelfast <strong>in</strong> Nor<strong>the</strong>rn Ireland.Agri-techA thriv<strong>in</strong>g agri-tech cluster <strong>in</strong><strong>the</strong> Norwich and Cambridgeareas takes advantage ofsome of <strong>the</strong> most fertilegrow<strong>in</strong>g land <strong>in</strong> <strong>the</strong> country,side-by-side with world-classuniversities and multiplescience and research centresspecialis<strong>in</strong>g <strong>in</strong> crop scienceand agronomy.R&DCutt<strong>in</strong>g-edge R&Dcapabilities serv<strong>in</strong>g arange of <strong>in</strong>dustry sectorsare harnessed at severalEnterprise Zones. Examples<strong>in</strong>clude <strong>the</strong> network ofscientific researchers atOx<strong>for</strong>d Science Vale, <strong>the</strong>state-of-<strong>the</strong>-art facilities<strong>for</strong> advanced eng<strong>in</strong>eer<strong>in</strong>gtechnology at Sci-TechDaresbury, and <strong>the</strong> transportsystems R&D capability atMIRA Technology Park <strong>in</strong>Leicestershire.
32 <strong>Invest</strong> <strong>in</strong> <strong>the</strong> <strong>UK</strong>: <strong>your</strong> spr<strong>in</strong>gboard <strong>for</strong> <strong>global</strong> <strong>growth</strong><strong>Invest</strong> <strong>in</strong> <strong>the</strong> <strong>UK</strong>: <strong>your</strong> spr<strong>in</strong>gboard <strong>for</strong> <strong>global</strong> <strong>growth</strong>33Ease of Do<strong>in</strong>g Bus<strong>in</strong>essSett<strong>in</strong>g up a bus<strong>in</strong>ess <strong>in</strong> <strong>the</strong> <strong>UK</strong>The entrepreneurial spirit is stronger than ever <strong>in</strong> <strong>the</strong> <strong>UK</strong>. New bus<strong>in</strong>esses are be<strong>in</strong>g set up<strong>in</strong> record numbers – over half a million <strong>in</strong> 2013. 1 Many factors come toge<strong>the</strong>r to create ourbus<strong>in</strong>ess-friendly environment.An <strong>in</strong>dividual can set up a bus<strong>in</strong>ess very easily <strong>in</strong> <strong>the</strong> <strong>UK</strong> without <strong>for</strong>mal registration or regulation.Most bus<strong>in</strong>esses however, choose to ‘<strong>in</strong>corporate’ and adopt one of a number of legal <strong>for</strong>ms whichgive <strong>the</strong> bus<strong>in</strong>ess a separate legal personality.<strong>UK</strong> ease of do<strong>in</strong>gbus<strong>in</strong>ess: <strong>the</strong> headl<strong>in</strong>esEasiest major economy<strong>in</strong> Europe to dobus<strong>in</strong>ess <strong>in</strong>Economy grow<strong>in</strong>g at<strong>the</strong> fastest rate <strong>in</strong> <strong>the</strong>G7 <strong>in</strong> 2014Largest deficitreduction of any majoradvanced economyFlexibility to choosea company structurethat suits <strong>your</strong> needsCorporate governancebased on pr<strong>in</strong>ciples, notburdensome regulationFair and openpublic procurementproceduresLondon is <strong>the</strong> world’slead<strong>in</strong>g centre <strong>for</strong>commercial litigationand arbitrationGround-break<strong>in</strong>gapproach to reduc<strong>in</strong>gregulatory burdens issav<strong>in</strong>g bus<strong>in</strong>ess timeand moneyThe World Bank reports thatit’s easier to do bus<strong>in</strong>ess <strong>in</strong><strong>the</strong> <strong>UK</strong> than any o<strong>the</strong>r majorEuropean economy. 2 Theirassessment <strong>in</strong>cludes factors suchas a regulatory environmentconducive to start<strong>in</strong>g a bus<strong>in</strong>ess,<strong>the</strong> ability to en<strong>for</strong>ce contractsand general legal protection.We are constantly improv<strong>in</strong>g ourbus<strong>in</strong>ess environment, adapt<strong>in</strong>g<strong>the</strong> market frameworks thatprotect <strong>your</strong> bus<strong>in</strong>ess and free itfrom unnecessary regulation andadm<strong>in</strong>istrative burdens.Company lawThe <strong>UK</strong> is an <strong>in</strong>ternational standardsetter <strong>for</strong> company law. We developedsome of <strong>the</strong> key features of ourcurrent legal framework over 150years ago, and <strong>the</strong> <strong>in</strong>fluence of thisfirst modern company law can beseen all around <strong>the</strong> world.Ultimately our legal and regulatoryframework is about enabl<strong>in</strong>g bus<strong>in</strong>essto succeed; it provides <strong>the</strong> certa<strong>in</strong>tyneeded to facilitate trade and attract<strong>in</strong>vestment to <strong>the</strong> <strong>UK</strong>.The core pr<strong>in</strong>ciples ofour legal and regulatoryframework are:FlexibilityYou can decide <strong>the</strong>ownership, f<strong>in</strong>anceand decision-mak<strong>in</strong>gstructures that workbest <strong>for</strong> you.Transparencyand accountabilityRequirements to ma<strong>in</strong>ta<strong>in</strong>public records and report<strong>in</strong><strong>for</strong>mation are based on<strong>the</strong> pr<strong>in</strong>ciple that trust iskey to bus<strong>in</strong>ess success.ProportionalityThese requirements areappropriate to <strong>the</strong> size of<strong>the</strong> bus<strong>in</strong>ess and natureof ownership.In a survey of senior managers from<strong>UK</strong>-based <strong>in</strong>ternational companies,90 percent said <strong>the</strong> stability andtransparency of our political, legal andregulatory environment make <strong>the</strong> <strong>UK</strong>an attractive location <strong>for</strong> new activities. 3This means <strong>the</strong> organisation can do bus<strong>in</strong>ess and enter <strong>in</strong>tocontracts <strong>in</strong> its own name. Incorporat<strong>in</strong>g makes it easier toraise f<strong>in</strong>ance, <strong>in</strong> particular because <strong>in</strong>vestors enjoy limitedliability. The company’s f<strong>in</strong>ances are separate from <strong>the</strong>ir own,so personal assets are not at risk. The limited company is <strong>the</strong>most commonly used <strong>in</strong>corporated legal <strong>for</strong>m, but <strong>UK</strong>TI canadvise on o<strong>the</strong>r options (see page 52).The process of <strong>in</strong>corporat<strong>in</strong>g a company <strong>in</strong> <strong>the</strong> <strong>UK</strong> is quick,easy and can be done electronically. For a small additional feethis process can be completed on <strong>the</strong> same day. CompaniesHouse, our registrar of <strong>UK</strong> companies, also now offers<strong>in</strong>corporation onl<strong>in</strong>e.One of <strong>the</strong> advantages of <strong>the</strong> company model is <strong>the</strong> freedom toagree <strong>your</strong> own rules and structures, provided <strong>the</strong>se are with<strong>in</strong><strong>the</strong> law. <strong>UK</strong> legislation provides model ‘articles’ <strong>for</strong> differenttypes of company which you can adopt or modify as needed.If you run an <strong>in</strong>corporated company you will need to providef<strong>in</strong>ancial and o<strong>the</strong>r <strong>in</strong><strong>for</strong>mation each year. The process <strong>for</strong>fil<strong>in</strong>g <strong>the</strong>se documents is simple and can be completedelectronically, sav<strong>in</strong>g you time and money.The <strong>UK</strong> Corporate Governance CodeOur legal and regulatory framework is supplemented by <strong>the</strong> <strong>UK</strong>Corporate Governance Code. The Code is not a rigid set of rules;it sets out good practice <strong>for</strong> companies on issues such as boardleadership and effectiveness, pay, accountability and relationswith shareholders. At <strong>the</strong> heart of its flexibility is <strong>the</strong> trademark‘comply or expla<strong>in</strong>’ approach. <strong>UK</strong> listed companies are requiredei<strong>the</strong>r to comply with <strong>the</strong> provisions of <strong>the</strong> Code, or expla<strong>in</strong> to<strong>in</strong>vestors <strong>in</strong> <strong>the</strong>ir next annual report why <strong>the</strong>y have not done so.This approach, widely admired and imitated <strong>in</strong>ternationally, givesyou flexibility to adopt a governance framework that fits <strong>your</strong>specific circumstances.Competition lawOur competition regime has a strong <strong>global</strong> reputation, and <strong>the</strong><strong>UK</strong> is seen as hav<strong>in</strong>g open and fair markets which work well.If you are look<strong>in</strong>g to start or expand <strong>your</strong> bus<strong>in</strong>ess <strong>in</strong> <strong>the</strong> <strong>UK</strong>,competition law protects you from anti-competitive practice<strong>in</strong> <strong>the</strong> market. We want <strong>the</strong> best and most efficient bus<strong>in</strong>essesto thrive, and <strong>for</strong> consumers to feel <strong>the</strong> benefit <strong>in</strong> <strong>the</strong> process.<strong>UK</strong> competition law is a flexible <strong>in</strong>strument. In most areas <strong>the</strong>legislation is based on <strong>the</strong> premise that each case should bejudged by <strong>the</strong> actual effect that a practice has on competitionand whe<strong>the</strong>r it is aga<strong>in</strong>st <strong>the</strong> public <strong>in</strong>terest.If you are an entrepreneur or <strong>in</strong>novator <strong>in</strong> <strong>the</strong> <strong>UK</strong>, our robust<strong>in</strong>tellectual property system will help you protect <strong>your</strong><strong>in</strong>novations and creativity. F<strong>in</strong>d out more on page 46.Procurement policyWhen you come to <strong>the</strong> <strong>UK</strong> you can be sure that public sectorprocurement is open, fair and transparent. You can bid toprovide goods or services ei<strong>the</strong>r through a direct contract orby becom<strong>in</strong>g a subcontractor. Public procurement <strong>in</strong> <strong>the</strong> <strong>UK</strong> isgoverned by EU Procurement Directives. This legal frameworkhelps to make public procurement a fair and open processacross <strong>the</strong> EU.We are mak<strong>in</strong>g this process even more transparent, giv<strong>in</strong>gyou <strong>the</strong> confidence and time to <strong>in</strong>vest <strong>in</strong> <strong>the</strong> resources tow<strong>in</strong> contracts. In England a free onl<strong>in</strong>e tool called ‘ContractsF<strong>in</strong>der’ will help you f<strong>in</strong>d <strong>in</strong><strong>for</strong>mation about current, futureand past contracts with government and its agencies, aswell as sub-contract<strong>in</strong>g opportunities. Scotland, Wales andNor<strong>the</strong>rn Ireland also have <strong>the</strong>ir own dedicated public sectorprocurement websites.Contract notices and bid documents expla<strong>in</strong> <strong>the</strong> bidd<strong>in</strong>gprocess and <strong>the</strong> support<strong>in</strong>g documentation needed, and aguide is available <strong>for</strong> small bus<strong>in</strong>esses on tender<strong>in</strong>g <strong>for</strong> publicsector contracts.In<strong>for</strong>mation about contracts is subject to <strong>the</strong> Freedom ofIn<strong>for</strong>mation Act 2000. You have a right to ask <strong>for</strong> detailed<strong>in</strong><strong>for</strong>mation about <strong>the</strong> bidd<strong>in</strong>g process. If <strong>your</strong> bid isunsuccessful, public sector organisations must give youfeedback if requested.Under <strong>the</strong> Freedom of In<strong>for</strong>mation Act, <strong>in</strong><strong>for</strong>mation <strong>in</strong> <strong>your</strong>tender can be disclosed to anyone who asks <strong>for</strong> it unless it isexempt. Guidance is available on exemptions. If any <strong>in</strong><strong>for</strong>mation<strong>in</strong> <strong>your</strong> tender is commercially confidential you can ask <strong>for</strong> anon-disclosure agreement.Our Department <strong>for</strong> Bus<strong>in</strong>ess runs a ‘Mystery Shopper’ servicethat provides a direct route <strong>for</strong> suppliers to feedback on publicprocurement practice and spot-checks public bodies to makesure that <strong>the</strong>ir procurement is small-bus<strong>in</strong>ess friendly.
34 <strong>Invest</strong> <strong>in</strong> <strong>the</strong> <strong>UK</strong>: <strong>your</strong> spr<strong>in</strong>gboard <strong>for</strong> <strong>global</strong> <strong>growth</strong><strong>Invest</strong> <strong>in</strong> <strong>the</strong> <strong>UK</strong>: <strong>your</strong> spr<strong>in</strong>gboard <strong>for</strong> <strong>global</strong> <strong>growth</strong>35Legal frameworkThe <strong>UK</strong> has an <strong>in</strong>ternational reputation <strong>for</strong> stability and consistency <strong>in</strong> its common law andgovernance. The rule of law is <strong>the</strong> foundation of a prosperous economy and free society.Property rights, <strong>the</strong> en<strong>for</strong>ceability of contracts, <strong>the</strong> polic<strong>in</strong>g of crim<strong>in</strong>al activities and protectionaga<strong>in</strong>st <strong>the</strong> arbitrary use of state power give <strong>in</strong>ternational bus<strong>in</strong>esses confidence <strong>in</strong> <strong>the</strong> <strong>UK</strong>as a trusted <strong>in</strong>vestment dest<strong>in</strong>ation.O<strong>the</strong>r countries are seek<strong>in</strong>g to emulate <strong>the</strong> <strong>UK</strong>’s pioneer<strong>in</strong>g approach;France, Italy and Spa<strong>in</strong> are <strong>in</strong>troduc<strong>in</strong>g a ‘One-In, One-Out’ scheme toboost <strong>the</strong>ir competitiveness.<strong>UK</strong> lawLondon has long been recognised as a primary centre <strong>for</strong><strong>in</strong>ternational 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 o<strong>the</strong>r govern<strong>in</strong>g laws <strong>for</strong> arbitrations,<strong>for</strong> example. 4 Over 4,300 <strong>in</strong>ternational arbitration andmediation disputes were resolved <strong>in</strong> <strong>the</strong> <strong>UK</strong> <strong>in</strong> 2011. 5 ScotsLaw, while different <strong>in</strong> many important aspects from Englishlaw, is closely aligned when it comes to commercial law ando<strong>the</strong>r areas affect<strong>in</strong>g bus<strong>in</strong>ess. Wherever you choose tolocate <strong>your</strong> bus<strong>in</strong>ess <strong>in</strong> <strong>the</strong> <strong>UK</strong>, you can be sure of hav<strong>in</strong>g awide choice of world-class legal advice.The strength of our law lies <strong>in</strong> <strong>the</strong> ideal comb<strong>in</strong>ation ofpredictability and flexibility. Courts follow <strong>the</strong>ir earlierdecisions, provid<strong>in</strong>g cont<strong>in</strong>uity and certa<strong>in</strong>ty – but will adaptpast rul<strong>in</strong>gs to meet modern bus<strong>in</strong>ess needs where needed.Monetary policyOur economic policy objective is to achieve strong,susta<strong>in</strong>able and balanced <strong>growth</strong> that is more evenly sharedacross <strong>the</strong> country and between <strong>in</strong>dustries. Price stability iscentral to this objective – this means target<strong>in</strong>g a low, stable<strong>in</strong>flation rate. Our <strong>in</strong>flation target of two percent is critical<strong>for</strong> creat<strong>in</strong>g certa<strong>in</strong>ty <strong>for</strong> bus<strong>in</strong>esses and consumers aboutmedium-term price changes. It means you can predict <strong>your</strong>future costs and <strong>in</strong>come with more confidence and <strong>in</strong>vestsecurely <strong>for</strong> optimal long-term <strong>growth</strong>.The Monetary Policy Committee (MPC) of <strong>the</strong> Bank ofEngland has full operational <strong>in</strong>dependence to set policiesto meet <strong>the</strong> <strong>in</strong>flation target. The separation of fiscal andInternational arbitrationand mediation disputes wereresolved <strong>in</strong> <strong>the</strong> <strong>UK</strong> <strong>in</strong> 2011The InternationalMonetary Fund predictsthat <strong>the</strong> <strong>UK</strong> economywill cont<strong>in</strong>ue to grow at<strong>the</strong> fastest rate <strong>in</strong> <strong>the</strong>G7 <strong>in</strong> 2014monetary policy is a key feature of <strong>the</strong> <strong>UK</strong>’s economic policy.Our commitment to price stability pushed <strong>in</strong>flation down toour target of two percent <strong>in</strong> December 2013 and it has fallenbelow this rate <strong>in</strong> <strong>the</strong> first quarter of 2014.Low <strong>in</strong>flation has helped to drive <strong>the</strong> <strong>UK</strong>’s strong economic<strong>growth</strong>. In <strong>the</strong> fourth quarter of 2013 <strong>the</strong> <strong>UK</strong> experienced<strong>the</strong> fastest <strong>growth</strong> of <strong>the</strong> G7 economies, jo<strong>in</strong>t with Canada. 6The International Monetary Fund (IMF) predicts that <strong>the</strong> <strong>UK</strong>economy will cont<strong>in</strong>ue to grow at <strong>the</strong> fastest rate <strong>in</strong> <strong>the</strong> G7 <strong>in</strong>2014. The recovery is balanced across all <strong>the</strong> ma<strong>in</strong> sectors of<strong>the</strong> economy, with manufactur<strong>in</strong>g, services and constructionall grow<strong>in</strong>g by over three percent <strong>in</strong> <strong>the</strong> year to March 2014.Fiscal policyS<strong>in</strong>ce <strong>the</strong> coalition government came to power <strong>in</strong> May 2010we have been resolute <strong>in</strong> our action to br<strong>in</strong>g about stable,balanced economic <strong>growth</strong> based on susta<strong>in</strong>able levels ofpublic and private sector borrow<strong>in</strong>g. Restor<strong>in</strong>g tight control ofpublic f<strong>in</strong>ances is essential <strong>for</strong> economic security - by reduc<strong>in</strong>g<strong>the</strong> gap between what we spend and what we raise <strong>in</strong> taxes wehave created <strong>the</strong> conditions <strong>for</strong> long-term <strong>growth</strong>.In 2010, <strong>the</strong> IMF <strong>for</strong>ecast that <strong>the</strong> <strong>UK</strong> would have <strong>the</strong> larges<strong>the</strong>adl<strong>in</strong>e and structural deficit of any G7 economy. Our fiscalpolicy has trans<strong>for</strong>med this situation and <strong>the</strong> deficit is <strong>for</strong>ecastto have halved from its peak by <strong>the</strong> end of this f<strong>in</strong>ancial year.In spr<strong>in</strong>g 2014, <strong>the</strong> IMF reported that <strong>the</strong> reduction <strong>in</strong> bothour headl<strong>in</strong>e and structural deficits was <strong>the</strong> largest of anymajor advanced world economy. By 2018-19 <strong>the</strong> <strong>in</strong>dependentOffice of Budget Responsibility predicts we will run our firstsurplus <strong>for</strong> 18 years. Reduc<strong>in</strong>g and <strong>the</strong>n elim<strong>in</strong>at<strong>in</strong>g <strong>the</strong> deficit<strong>in</strong> this way means lower <strong>in</strong>terest payments <strong>for</strong> consumersand bus<strong>in</strong>ess, more jobs, greater prosperity – and <strong>the</strong> ideal> 4,300 > 2 millionPrivate sector jobs have been createds<strong>in</strong>ce early 2010, and employmentreached its highest ever level <strong>in</strong> 2014environment <strong>for</strong> <strong>your</strong> bus<strong>in</strong>ess to thrive <strong>in</strong>. Over twomillion private sector jobs have been created s<strong>in</strong>ceearly 2010, and employment reached its highestever level <strong>in</strong> <strong>the</strong> first quarter of 2014.Regulatory policyGett<strong>in</strong>g rid of unnecessary regulations is centralto our drive to make <strong>the</strong> <strong>UK</strong> <strong>the</strong> best place <strong>for</strong><strong>in</strong>vestors to start, f<strong>in</strong>ance and expand <strong>the</strong>irbus<strong>in</strong>esses. We consider regulation to be a lastresort, an approach that will save <strong>your</strong> bus<strong>in</strong>esstime and money. We will keep or <strong>in</strong>troduceregulations that help markets function effectively,and remove those that impose unnecessary costsand h<strong>in</strong>der competitiveness.Our ground-break<strong>in</strong>g approach toreduc<strong>in</strong>g regulatory burdens is <strong>the</strong>‘One-In, Two-Out’ rule. Any <strong>in</strong>crease<strong>in</strong> <strong>the</strong> cost of regulation requires usto save twice this amount through<strong>the</strong> removal of regulations elsewhere.We have cut <strong>the</strong> annual cost ofregulation by over £1 billion per yearthrough this approach.Our review of exist<strong>in</strong>g regulations has identifiedover 3,000 that can be removed or improved.These changes will deliver sav<strong>in</strong>gs to bus<strong>in</strong>ess ofover £850 million per year once all <strong>the</strong> re<strong>for</strong>ms areimplemented.Sources:1. Start Up Brita<strong>in</strong> 2014. Press release: New Figures Reveal Entrepreneurial Hotspots, 26January 20142. World Bank 2014. Do<strong>in</strong>g Bus<strong>in</strong>ess 20143. Ernst & Young 2014. <strong>UK</strong> Attractiveness Survey 20144. TheCity<strong>UK</strong> 2014. Professional Services Series: Legal Services January 20145. TheCity<strong>UK</strong> 2013. Key Facts about <strong>the</strong> <strong>UK</strong> as an International F<strong>in</strong>ancial Centre6. OECD 2014. Quarterly National Accounts: Quarterly Growth Rates of Real GDP, change overprevious quarter (March 2014)Sav<strong>in</strong>g you time and moneyJust a few examples from thousands ofmeasures that benefit bus<strong>in</strong>ess.Company lawWe are giv<strong>in</strong>g 100,000 more bus<strong>in</strong>esses flexibility todecide whe<strong>the</strong>r <strong>the</strong>ir accounts should be audited.From 2015 small companies can file <strong>the</strong>ir companyaccounts and annual returns toge<strong>the</strong>r, onl<strong>in</strong>e andjust <strong>the</strong> once.Employment lawWe <strong>in</strong>creased <strong>the</strong> qualification period <strong>for</strong> <strong>the</strong> right toclaim unfair dismissal from one to two years. Bus<strong>in</strong>essesget more flexibility to make difficult decisions whilefundamental employee protections are reta<strong>in</strong>ed.Our Employer’s Charter dispels <strong>the</strong> myths aboutwhat employers can and can’t do when manag<strong>in</strong>g<strong>the</strong>ir work<strong>for</strong>ce.Medic<strong>in</strong>esMovement towards a ‘one stop’ pr<strong>in</strong>ciple <strong>for</strong> approv<strong>in</strong>gchanges to medic<strong>in</strong>e licences should save bus<strong>in</strong>ess atleast £25 million per year.AviationBetter use of <strong>UK</strong> airspace will enable more directflight routes, br<strong>in</strong>g<strong>in</strong>g benefits to airl<strong>in</strong>es, airports andpassengers.Health and safetyNearly 90 percent of health and safety regulationswill be scrapped or improved.
36 <strong>Invest</strong> <strong>in</strong> <strong>the</strong> <strong>UK</strong>: <strong>your</strong> spr<strong>in</strong>gboard <strong>for</strong> <strong>global</strong> <strong>growth</strong><strong>Invest</strong> <strong>in</strong> <strong>the</strong> <strong>UK</strong>: <strong>your</strong> spr<strong>in</strong>gboard <strong>for</strong> <strong>global</strong> <strong>growth</strong>37InfrastructureTransportAirThe <strong>UK</strong> – small nation, big work<strong>for</strong>ce, fast transport. The perfect comb<strong>in</strong>ation to help you movegoods and people quickly around <strong>the</strong> country. With over 70 airports, 40 major ports, excellent raill<strong>in</strong>ks and toll-free motorways, gett<strong>in</strong>g to, from and around <strong>the</strong> <strong>UK</strong> is both simple and af<strong>for</strong>dable.The <strong>UK</strong> has excellent <strong>in</strong>ternational connectivity from major airports distributed across <strong>the</strong> country.We have <strong>the</strong> largest air transport system <strong>in</strong> Europe, handl<strong>in</strong>g 228 million passengers <strong>in</strong> 2013. 7<strong>UK</strong> transport: <strong>the</strong> headl<strong>in</strong>es£120 billion <strong>in</strong>vestmentis trans<strong>for</strong>m<strong>in</strong>g <strong>the</strong>speed and reliability ofour transport systemsThe largest airtransport system <strong>in</strong>EuropeThe second largestports <strong>in</strong>dustry <strong>in</strong>EuropeThe most improved railnetwork <strong>in</strong> <strong>the</strong> EULondon ranked top<strong>global</strong>ly <strong>for</strong> <strong>the</strong>efficiency, reliabilityand safety of itstransport networkKeep<strong>in</strong>g <strong>your</strong> bus<strong>in</strong>ess mov<strong>in</strong>gWe are <strong>in</strong>vest<strong>in</strong>g record amounts of money to enhance a transport systemthat supports 21st century bus<strong>in</strong>ess. A huge pipel<strong>in</strong>e of transportimprovements worth over £120 billion is ei<strong>the</strong>r underway or planned. 1 Nearly200 projects are scheduled <strong>for</strong> completion <strong>in</strong> 2014-15, with ano<strong>the</strong>r 150 dueto start over <strong>the</strong> same period. 2 It’s already easier to get around; London, <strong>for</strong>example, has even better transport connections after a £6.5 billion upgradewas completed be<strong>for</strong>e <strong>the</strong> 2012 Olympic and Paralympic Games. Our capitalis ranked top <strong>for</strong> <strong>the</strong> efficiency, reliability and safety of its public transportnetwork <strong>in</strong> a study of 30 of <strong>the</strong> world’s greatest cities. 3SeaWe have a vibrant port <strong>in</strong>frastructure, just as you’d expect <strong>for</strong> anisland country with our long and proud maritime heritage.• 95 percent of <strong>the</strong> volume of all<strong>the</strong> <strong>UK</strong>’s import/export tradetravels through our ports. 4• The <strong>UK</strong> ports <strong>in</strong>dustry is <strong>the</strong>second largest <strong>in</strong> Europe <strong>in</strong>terms of total tonnage handled. 5• The <strong>UK</strong> hosts four of <strong>the</strong>twenty biggest ports <strong>in</strong> <strong>the</strong>EU by tonnage handled. 6We have over 100 commercialports <strong>in</strong> <strong>the</strong> <strong>UK</strong>, with 40 majorports provid<strong>in</strong>g <strong>the</strong> capacity tohandle cargo of every size andtype. There are large all-purposeports such as Liverpool, ferryports such as Dover, specialisedconta<strong>in</strong>er ports such as Felixstowe,and ports cater<strong>in</strong>g <strong>for</strong> bulk trafficsuch as coal or oil.<strong>UK</strong> deep water ports –three examplesLondon Gateway is comb<strong>in</strong>edwith 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 conta<strong>in</strong>er term<strong>in</strong>al(‘Liverpool 2’, open <strong>in</strong> 2015)will attract some of <strong>the</strong> world’slargest conta<strong>in</strong>er vessels to adistribution hub with a populationof 35 million consumers with<strong>in</strong> a150 mile radius.Port of Mil<strong>for</strong>d Haven <strong>in</strong> Walesis a natural deep water port thathandles 20 percent of Brita<strong>in</strong>’sseaborne traffic of oil and gas.The <strong>UK</strong> aviation sector has more seats availableand serves more dest<strong>in</strong>ations on a daily basisthan any o<strong>the</strong>r European country. 9 You canenjoy <strong>the</strong> flexibility of multiple daily directflights to <strong>the</strong> world’s major cities. 10London is a better connected city than Paris,Frankfurt and Amsterdam. The comb<strong>in</strong>eddirect weekly services from London’s fiveairports go to more dest<strong>in</strong>ations than fromParis (two airports), Frankfurt (two airports)and Amsterdam. London Heathrow has moreflights to many major <strong>in</strong>ternational cities than<strong>the</strong>se three major EU hubs. Heathrow had overtwice as many direct scheduled flights <strong>in</strong> 2013to New York, Chicago, Los Angeles, Wash<strong>in</strong>gton,Boston, Toronto, Dubai, Hong Kong, Mumbai,Delhi and Johannesburg.Average journey times by air from <strong>the</strong><strong>UK</strong> to key European dest<strong>in</strong>ations 8London toAmsterdamBerl<strong>in</strong>ZurichPragueRomeMadridIstanbulSource: skyscanner.netDaily direct flights to <strong>the</strong> world’s major citiesBus<strong>in</strong>ess aviationYou can enjoy <strong>the</strong> flexibility of private bus<strong>in</strong>essCity London London Manchester Birm<strong>in</strong>gham Glasgow/from our capital than any o<strong>the</strong>r European city. 11flights from a network of airports across <strong>the</strong>Heathrow City Ed<strong>in</strong>burgh<strong>UK</strong>. There are over 3,000 airports <strong>in</strong> Europewhich private jets can use, ten times <strong>the</strong>Paris 17 4 7 5 7number available to airl<strong>in</strong>ers. Three of <strong>the</strong>Amsterdam 18 9 7 7 12busiest 25 private bus<strong>in</strong>ess airports <strong>in</strong> EuropeFrankfurt 17 5 4 4 3are <strong>in</strong> 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 - - - -Beij<strong>in</strong>g 6 - - - -Shanghai 2 - - - -(Average number of direct passenger flight departures per day <strong>in</strong> 2014)Source: skyscanner.net plus <strong>in</strong><strong>for</strong>mation from <strong>UK</strong> airportsDuration by air (hours and m<strong>in</strong>utes)55 m<strong>in</strong>utes1 hour, 40 m<strong>in</strong>utes1 hour, 30 m<strong>in</strong>utes1 hour, 45 m<strong>in</strong>utes2 hours, 20 m<strong>in</strong>utes2 hours, 15 m<strong>in</strong>utes3 hours, 40 m<strong>in</strong>utes
38 <strong>Invest</strong> <strong>in</strong> <strong>the</strong> <strong>UK</strong>: <strong>your</strong> spr<strong>in</strong>gboard <strong>for</strong> <strong>global</strong> <strong>growth</strong><strong>Invest</strong> <strong>in</strong> <strong>the</strong> <strong>UK</strong>: <strong>your</strong> spr<strong>in</strong>gboard <strong>for</strong> <strong>global</strong> <strong>growth</strong>39RailInfrastructureDigitalWherever you need to go <strong>in</strong> <strong>the</strong> <strong>UK</strong>, <strong>the</strong> chances are a tra<strong>in</strong> can take you <strong>the</strong>re. Rail coverage isone of <strong>the</strong> most <strong>in</strong>tensive <strong>in</strong> <strong>the</strong> EU – while only <strong>the</strong> eighth largest member state by area we have<strong>the</strong> fourth longest rail network.We already have <strong>the</strong> best superfast broadband service of any major European economy - but ourfocus is not on today. We are build<strong>in</strong>g a digital <strong>in</strong>frastructure <strong>for</strong> a super-connected future, capableof support<strong>in</strong>g <strong>the</strong> huge <strong>in</strong>crease <strong>in</strong> usage and <strong>the</strong> demand <strong>for</strong> lightn<strong>in</strong>g-fast speed.Our re<strong>for</strong>med rail <strong>in</strong>dustry is deliver<strong>in</strong>g. The EuropeanCommission found <strong>the</strong> <strong>UK</strong> network to be <strong>the</strong> most improved<strong>in</strong> <strong>the</strong> EU, com<strong>in</strong>g top <strong>in</strong> four of <strong>the</strong> 14 factors considered(<strong>in</strong>clud<strong>in</strong>g <strong>growth</strong> of overall customer satisfaction andsafety). 12 Our railways also rank as one of <strong>the</strong> best majornetworks <strong>in</strong> <strong>the</strong> EU accord<strong>in</strong>g to a major passenger surveyconducted by <strong>the</strong> European Commission <strong>in</strong> 2013. We toppedEurope’s seven major railways <strong>in</strong> punctuality and reliability,<strong>in</strong><strong>for</strong>mation dur<strong>in</strong>g journeys and accessibility.The Eurostar connection provides a fast route to ma<strong>in</strong>landEurope. You can be <strong>in</strong> Brussels or Paris <strong>in</strong> just over twohours after leav<strong>in</strong>g London – a similar journey time asLondon to Manchester.You can connect easily with <strong>the</strong> Eurostar from most major<strong>UK</strong> towns. Onward travel from <strong>the</strong> direct Eurostardest<strong>in</strong>ations enables you to reach up to 100 towns andcities throughout Europe.We are spend<strong>in</strong>g £38 billion from 2014 to 2019 to make ourrailways even better – <strong>the</strong> biggest modernisation programmes<strong>in</strong>ce Victorian times. This means capacity <strong>for</strong> more tra<strong>in</strong>s,more seats, faster journeys and bigger, better stations.Major projects <strong>in</strong>clude:• The Nor<strong>the</strong>rn Hub - major upgrades across <strong>the</strong> north ofEngland with capacity <strong>for</strong> hundreds more tra<strong>in</strong>s and 44million more passengers.• Crossrail - <strong>the</strong> new high frequency railway that will br<strong>in</strong>gan extra 1.5 million people to with<strong>in</strong> a 45 m<strong>in</strong>ute commut<strong>in</strong>gdistance of central London.• High Speed 2 - a high-speed railway that will l<strong>in</strong>k eight ofBrita<strong>in</strong>’s ten largest cities, serv<strong>in</strong>g one <strong>in</strong> five of <strong>the</strong> population.Sources:1. House of Commons Library 2013. Infrastructure Policy: Standard Note SN/EP/65942. HM Treasury 2014. Projected <strong>in</strong>frastructure starts and completions <strong>in</strong> 2014-153. PwC 2014. Cities of Opportunity 64. United K<strong>in</strong>gdom Major Ports Group Ltd 2014. The <strong>UK</strong> ports <strong>in</strong>dustry – a profile (onl<strong>in</strong>e)5. Eurostat 2013. Maritime ports freight and passenger statistics 2011: gross weight of seaborne goodshandled by ma<strong>in</strong> ports by type of cargo6. Eurostat 2013. Maritime ports freight and passenger statistics 2011: top 20 cargo ports <strong>in</strong> 2012Fastest current journey times by rail fromLondon to key dest<strong>in</strong>ationsLondon toBirm<strong>in</strong>ghamManchesterEd<strong>in</strong>burghBrusselsParisAmsterdamSource: National Rail and Eurostar 2014RoadDuration by rail (hours and m<strong>in</strong>utes)1 hour, 22 m<strong>in</strong>utes2 hours, 7 m<strong>in</strong>utes4 hours, 21 m<strong>in</strong>utes2 hours, 1 m<strong>in</strong>ute2 hours, 16 m<strong>in</strong>utes4 hours, 38 m<strong>in</strong>utesWith 64 million people liv<strong>in</strong>g <strong>in</strong> a relativelysmall country, you’d expect our roads to be busy.But we are tak<strong>in</strong>g unprecedented action to keeptraffic flow<strong>in</strong>g.<strong>Invest</strong>ment <strong>in</strong> major projects will triple between 2013 and2020 to upgrade our roads to an entirely new standard. Andit’s not just major projects – we are carry<strong>in</strong>g out hundreds ofsmaller improvements that will help to stimulate <strong>growth</strong> <strong>in</strong> <strong>the</strong>local economy, relieve congestion and improve safety. Safetyis someth<strong>in</strong>g we take very seriously – only Sweden and Icelandhave safer roads than us <strong>in</strong> 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 <strong>in</strong> 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 population<strong>UK</strong> digital <strong>in</strong>frastructure:<strong>the</strong> headl<strong>in</strong>esThe best superfastbroadband service ofany major EuropeaneconomyMore ‘network ready’than any o<strong>the</strong>r majorEuropean economyHost<strong>in</strong>g <strong>the</strong> world’sfirst test bed <strong>for</strong> 5Gtechnologies andservicesOpen and competitivebroadband andtelecoms marketsmeans lower pricesand more choiceBiggest e-commercemarket <strong>in</strong> EuropeEricsson predicts <strong>the</strong>re will be some 50 billion ‘connected devices’ <strong>in</strong> use <strong>global</strong>lyby 2020 1 – an ‘<strong>in</strong>ternet of th<strong>in</strong>gs’ that will drive <strong>in</strong>novation, productivity andeconomic <strong>growth</strong>. It is a vision we are ready <strong>for</strong>.The World Economic Forum (WEF) confirms <strong>the</strong> strength of our foundations. Weare ranked ahead of all <strong>the</strong> o<strong>the</strong>r major European economies <strong>in</strong> <strong>the</strong> NetworkedRead<strong>in</strong>ess Index, a measure of capacity to use <strong>in</strong><strong>for</strong>mation and communicationtechnology to promote <strong>growth</strong> and social wellbe<strong>in</strong>g. 2World Economic Forum NetworkedRead<strong>in</strong>ess Index 2014…F<strong>in</strong>land 1S<strong>in</strong>gapore 2Sweden 3USA 7<strong>UK</strong> 9South Korea 10Germany 12France 25Ireland 26Spa<strong>in</strong> 34Italy 58…with <strong>the</strong> <strong>UK</strong> <strong>in</strong> <strong>the</strong> top five <strong>for</strong>eleven WEF <strong>in</strong>dicators, <strong>in</strong>clud<strong>in</strong>gWEF Indicator“The <strong>UK</strong> cont<strong>in</strong>ues to exhibit a very strong per<strong>for</strong>mance. Thecountry recognised <strong>the</strong> importance of ICT to support <strong>in</strong>novationand competitiveness early. As a result, it has a well-developed ICT<strong>in</strong>frastructure, with one of <strong>the</strong> highest population uptakes and welldevelopede-commerce.” - World Economic ForumOur broadband commitmentOur commitment to ma<strong>in</strong>ta<strong>in</strong><strong>in</strong>g ourstatus as a lead<strong>in</strong>g digital nation meansthat 95 percent of <strong>UK</strong> homes andbus<strong>in</strong>esses will have access to superfastbroadband by 2017. This coverage isalready surg<strong>in</strong>g ahead, <strong>in</strong>creas<strong>in</strong>g fromaround 60 percent at <strong>the</strong> end of 2011 to73 percent by mid-2013 – higher thanFrance, Germany, Italy and Spa<strong>in</strong>. 3We are ranked tenth overall <strong>in</strong> <strong>the</strong> EU<strong>for</strong> superfast broadband coverage – aposition that speaks volumes about <strong>the</strong>scale of our <strong>in</strong>frastructure <strong>in</strong>vestment.The number of people <strong>in</strong> <strong>the</strong> <strong>UK</strong> <strong>in</strong> areasRankBus<strong>in</strong>ess to consumer <strong>in</strong>ternet use 1Use of virtual social networks 2Accessibility of digital content 4Availability of latest technologies 5Bus<strong>in</strong>ess-to-bus<strong>in</strong>ess <strong>in</strong>ternet use 5Population e-participation 5served by superfast broadband is almost<strong>the</strong> size of <strong>the</strong> comb<strong>in</strong>ed populations of<strong>the</strong> n<strong>in</strong>e countries ranked above us. This<strong>in</strong>frastructure also connects bus<strong>in</strong>essesand communities over an area more thantwice <strong>the</strong> size of Portugal, <strong>the</strong> largestcountry <strong>in</strong> <strong>the</strong> top n<strong>in</strong>e.London’s digital status illustrates <strong>the</strong>pace of change <strong>in</strong> <strong>the</strong> <strong>UK</strong>. It is rated top<strong>for</strong> ‘technology read<strong>in</strong>ess’ <strong>in</strong> a study of30 of <strong>the</strong> world’s most dynamic cities. 4This puts our capital above cities suchas Seoul, Stockholm and Hong Kong <strong>for</strong><strong>the</strong> strength of its digital economy and<strong>in</strong>frastructure.
40 <strong>Invest</strong> <strong>in</strong> <strong>the</strong> <strong>UK</strong>: <strong>your</strong> spr<strong>in</strong>gboard <strong>for</strong> <strong>global</strong> <strong>growth</strong><strong>Invest</strong> <strong>in</strong> <strong>the</strong> <strong>UK</strong>: <strong>your</strong> spr<strong>in</strong>gboard <strong>for</strong> <strong>global</strong> <strong>growth</strong>41Percentage of households <strong>in</strong> 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 comput<strong>in</strong>gWork more efficiently by access<strong>in</strong>g data orsoftware from any <strong>in</strong>ternet enabled device.Large filesEasier, faster handl<strong>in</strong>g.SlovakiaA survey of managers from <strong>UK</strong>-based <strong>in</strong>ternational companies found that 90percent feel our technology and telecommunications <strong>in</strong>frastructure makes <strong>the</strong> <strong>UK</strong> anattractive location <strong>for</strong> undertak<strong>in</strong>g new activities. 5What does high speedconnectivity mean <strong>for</strong> me?SwedenHungaryBulgariaEstoniaRomaniaSpa<strong>in</strong>SloveniaF<strong>in</strong>landGermanyAustria<strong>UK</strong>CyprusDenmarkSuper-connected citiesPortugalBus<strong>in</strong>esses get an additional onl<strong>in</strong>e boost <strong>in</strong> 22 ‘superconnectedcities’ across <strong>the</strong> <strong>UK</strong> where extra fast and reliablebroadband and wireless connectivity is available. You willalso f<strong>in</strong>d superfast broadband <strong>in</strong>creas<strong>in</strong>gly available onplanes, tra<strong>in</strong>s and ferries <strong>in</strong> <strong>the</strong> <strong>UK</strong> as travel operators takeadvantage of new antenna technology that makes broadbandspeeds up to ten times faster.LatviaLithuaniaLuxembourgBelgiumNe<strong>the</strong>rlandsMaltaSource: Ofcom 2014. European Broadband Scorecard.Keep<strong>in</strong>g ahead <strong>in</strong> mobileA survey of managers from <strong>UK</strong>-based <strong>in</strong>ternationalcompanies found that 90 percent feel our technology andtelecommunications <strong>in</strong>frastructure makes <strong>the</strong> <strong>UK</strong> an attractivelocation <strong>for</strong> undertak<strong>in</strong>g new activities. 54G <strong>in</strong>ternet is now widely available <strong>in</strong> <strong>the</strong> <strong>UK</strong>. Networkoperators are expect<strong>in</strong>g to cover 98 percent of <strong>the</strong> <strong>UK</strong>population by <strong>the</strong> end of 2015.To prepare <strong>for</strong> even faster mobile coverage we are support<strong>in</strong>ga university/<strong>in</strong>dustry partnership to develop <strong>the</strong> world’s firsttest bed <strong>for</strong> 5G technologies and services. This paves <strong>the</strong> way<strong>for</strong> ‘always sufficient’ bandwidth that gives <strong>the</strong> perception of<strong>in</strong>f<strong>in</strong>ite capacity. 5G is predicted to be 1,000 times faster than4G, mak<strong>in</strong>g it possible to download a feature-length film to awireless device <strong>in</strong> one second. This is <strong>the</strong> sort of connectivitywe expect <strong>UK</strong>-based bus<strong>in</strong>ess to benefit from be<strong>for</strong>e <strong>the</strong>iroverseas competitors. It will give you <strong>the</strong> plat<strong>for</strong>m 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 <strong>your</strong> needs. Effectivederegulation has also set <strong>in</strong>dustry free to <strong>in</strong>novate as ourdigital <strong>in</strong>frastructure opens up new possibilities.In a comparison of <strong>the</strong> average of <strong>the</strong> three lowest availableprices <strong>for</strong> standalone fixed broadband and fixed voiceservices, costs <strong>in</strong> <strong>the</strong> <strong>UK</strong> were <strong>the</strong> cheapest of <strong>the</strong> fivelargest EU economies at three different levels of broadbandspeed and data use. 6Flexible work<strong>in</strong>gWork where and when you want.Wide Area Network connectivityFaster file shar<strong>in</strong>g and data transferacross multiple sites.Internet Protocol (IP) telephonyBetter <strong>in</strong>tegration of voicecommunications.Real time <strong>in</strong><strong>for</strong>mation shar<strong>in</strong>g.Social mediaNew opportunities to communicatewith customers and suppliers.Software as a service applicationReliability and reduced cost.Onl<strong>in</strong>e salesNew service opportunities andhandl<strong>in</strong>g high-volume traffic.Derry/LondonderryBelfastBrad<strong>for</strong>dSal<strong>for</strong>dPerthPortsmouthAberdeenEd<strong>in</strong>burghNewcastleYorkLeedsManchesterDerbyBirm<strong>in</strong>ghamCoventryOx<strong>for</strong>d CambridgeNewportLondonCardiffBristolBrighton & HoveWeighted average s<strong>in</strong>gle-service pric<strong>in</strong>g <strong>for</strong> fixedbroadband and fixed voice services0 10 20 30 40 50 60 708Mbit/s, 10GB and350 m<strong>in</strong>s (Basket 1)£30£30£39£45£4816Mbit/s, 20GB and350 m<strong>in</strong>s (Basket 2)£45£55£59£53£53£6730Mbit/s, 30GB and50 m<strong>in</strong>s (Basket 3)£48£50£46<strong>UK</strong> France Germany Spa<strong>in</strong> ItalySource: Ofcom, us<strong>in</strong>g data supplied by TeligenThe <strong>UK</strong> onl<strong>in</strong>eWe are enthusiastic adopters of <strong>in</strong>ternettechnologies <strong>in</strong> <strong>the</strong> <strong>UK</strong>. The take-up of both fixedand mobile broadband is <strong>the</strong> fourth highest <strong>in</strong> <strong>the</strong> EU– and take-up of superfast broadband is <strong>the</strong> highest<strong>in</strong> <strong>the</strong> five largest economies <strong>in</strong> <strong>the</strong> EU. 7 This loveof onl<strong>in</strong>e technology, comb<strong>in</strong>ed with huge marketdemand, makes <strong>the</strong> <strong>UK</strong> <strong>the</strong> biggest e-commercemarket <strong>in</strong> Europe – with Europe be<strong>in</strong>g <strong>the</strong> biggeste-commerce market <strong>in</strong> <strong>the</strong> world. 8Sources:1. Ericsson 2011. White Paper: More than 50 Billion Connected Devices2. World Economic Forum 2014. Global In<strong>for</strong>mation Technology Report3. Ofcom 2014. European Broadband Scorecard4. PwC 2014. Cities of Opportunity5. Ernst & Young 20146. Ofcom 2014. European Broadband Scorecard. For detailed notes accompany<strong>in</strong>g this data, see page 23 of thisreport at: http://stakeholders.ofcom.org.uk/b<strong>in</strong>aries/research/broadband-research/scorecard/European_Broadband_Scorecard_2014.pdf . While Ofcom note that none of <strong>the</strong> available pric<strong>in</strong>g metrics is perfect <strong>in</strong>isolation, <strong>the</strong>y state that weighted average pric<strong>in</strong>g measures generally offer a more accurate reflection of <strong>the</strong>prices consumers are pay<strong>in</strong>g <strong>in</strong> a given market7. Ofcom 2014. European Broadband Scorecard8. Ecommerce Europe 2013. Europe B2C Ecommerce Report
42 <strong>Invest</strong> <strong>in</strong> <strong>the</strong> <strong>UK</strong>: <strong>your</strong> spr<strong>in</strong>gboard <strong>for</strong> <strong>global</strong> <strong>growth</strong><strong>Invest</strong> <strong>in</strong> <strong>the</strong> <strong>UK</strong>: <strong>your</strong> spr<strong>in</strong>gboard <strong>for</strong> <strong>global</strong> <strong>growth</strong>43InfrastructureUtilitiesThe <strong>UK</strong> is one of <strong>the</strong> most energy secure countries <strong>in</strong> <strong>the</strong> world. We ma<strong>in</strong>ta<strong>in</strong> this status thanks to<strong>the</strong> comb<strong>in</strong>ation of our own reserves, effective regulation of competitive markets, diverse sourcesof imported energy and our focus on <strong>in</strong>creas<strong>in</strong>g clean energy – which <strong>in</strong>cludes nuclear, renewablesand carbon capture and storage.<strong>UK</strong> utilities: <strong>the</strong> headl<strong>in</strong>esOne of only fivecountries worldwidewith a World EnergyCouncil ‘AAA’ rat<strong>in</strong>gPrivatisation of <strong>the</strong>major utilities meansgreater choice andlower prices <strong>for</strong><strong>in</strong>dustrial energyconsumers<strong>Invest</strong>ment <strong>in</strong> ‘smartgrid’ technology willsupport <strong>the</strong> securityof our energy supply<strong>for</strong> future decadesLike many countries, we facechallenges <strong>in</strong> <strong>the</strong> shape of b<strong>in</strong>d<strong>in</strong>glow-carbon targets and decl<strong>in</strong><strong>in</strong>gfossil fuel reserves. Our responsehas been one of <strong>the</strong> most radicaloverhauls of <strong>the</strong> <strong>UK</strong>’s energy<strong>in</strong>frastructure and markets s<strong>in</strong>ce <strong>the</strong>1980s. The re<strong>for</strong>ms we have put <strong>in</strong>place are driv<strong>in</strong>g <strong>the</strong> huge amountof <strong>in</strong>vestment required, giv<strong>in</strong>g youcont<strong>in</strong>ued access to <strong>the</strong> energy youneed at stable, competitive prices.The <strong>UK</strong> is one of only five countriesto receive a World Energy Council(WEC) ‘AAA’ rat<strong>in</strong>g. This assessmentis based on <strong>the</strong> security andreliability of energy <strong>in</strong>frastructure;<strong>the</strong> accessibility and af<strong>for</strong>dabilityof supply; and environmentalsusta<strong>in</strong>ability. WEC report that: ‘<strong>the</strong><strong>UK</strong> rema<strong>in</strong>s a “pack leader” wi<strong>the</strong>xcellent per<strong>for</strong>mance on all threeenergy dimensions’.World Energy Council Energy Susta<strong>in</strong>ability Index 2013Smart gridOur <strong>in</strong>vestment <strong>in</strong> ‘smart grid’technology helps to safeguard<strong>the</strong> security of our energysupply <strong>for</strong> decades to come.With better monitor<strong>in</strong>g andcontrol of <strong>the</strong> power network,electricity companies will identifyfluctuations <strong>in</strong> demand and routepower to where it is neededmost. You get <strong>the</strong> reassuranceof a reliable energy supply, andcheaper prices through sav<strong>in</strong>gs onnetwork costs.Energy costsPrivatisation of <strong>the</strong> major utilitieshas led to greater choice andlower prices <strong>for</strong> <strong>in</strong>dustrial energyconsumers. Our energy costsare competitive with those <strong>in</strong>o<strong>the</strong>r major economies <strong>in</strong> <strong>the</strong> EU,particularly <strong>for</strong> gas prices.Gas prices <strong>for</strong> <strong>in</strong>dustrialconsumers 2013 2CountryElectricity prices <strong>for</strong> <strong>in</strong>dustrialconsumers 2013 3CountryCost (€/gigajoule)Ne<strong>the</strong>rlands 8.43<strong>UK</strong> 9.36Italy 10.43Spa<strong>in</strong> 10.65Denmark 10.74Ireland 10.81France 11.03Germany 12.16Cost (€/kWh)France 0.0771Ne<strong>the</strong>rlands 0.0789Denmark 0.0898Germany 0.0860Italy 0.1122<strong>UK</strong> 0.1124Spa<strong>in</strong> 0.1165Ireland 0.1331Average national price without taxesElectricity generation<strong>in</strong> <strong>the</strong> <strong>UK</strong>The security of our powersupply is aided by a healthymix of energy sources. Lowcarbon electricity’s share ofgeneration <strong>in</strong>creased by 13percent <strong>in</strong> 2013, pushed by<strong>in</strong>creases <strong>in</strong> renewables andnuclear generation. 1Renewables14.8%Gas26.8%Nuclear19.8%Coal36.3%O<strong>the</strong>r 1.5%Oil 0.7%Source: DECC April 2014. Energy Trends section 5: electricity<strong>in</strong>crease <strong>in</strong> low carbon electricity’s13% share of generation <strong>in</strong> 2013Cutt<strong>in</strong>g energy costs <strong>for</strong> <strong>UK</strong>-based manufacturersIn March 2014 we brought <strong>in</strong> a £7 billion package to cut energy bills <strong>for</strong>manufacturers, with benefits <strong>for</strong> o<strong>the</strong>r bus<strong>in</strong>esses too.• We have capped <strong>for</strong> <strong>the</strong> rest of <strong>the</strong> decade <strong>the</strong> m<strong>in</strong>imum price acompany must pay <strong>for</strong> each tonne of carbon dioxide emitted. If you’rerunn<strong>in</strong>g a mid-sized manufactur<strong>in</strong>g bus<strong>in</strong>ess <strong>in</strong> <strong>the</strong> <strong>UK</strong> this will save almost£50,000 on <strong>your</strong> annual energy bill.• We have also extended our compensation scheme <strong>for</strong> energy <strong>in</strong>tensive<strong>in</strong>dustries <strong>for</strong> a fur<strong>the</strong>r four years to 2019-20, protect<strong>in</strong>g <strong>the</strong>competitiveness of steel makers, chemical plants, paper mills ando<strong>the</strong>r heavy energy users.• Users of energy from Comb<strong>in</strong>ed Heat and Power plants are exemptfrom <strong>the</strong> tax on fossil fuels used to generate electricity.Energy securityThe effective management of primaryenergy supply, <strong>the</strong> reliability of energy<strong>in</strong>frastructure, and <strong>the</strong> ability to meetcurrent and future demandEnergy equityThe accessibility and af<strong>for</strong>dability ofenergy supply across <strong>the</strong> populationEnvironmental susta<strong>in</strong>abilityThe impact of supply and demand-sideenergy efficiencies and <strong>the</strong> developmentof energy supply from renewable ando<strong>the</strong>r low-carbon sources.Switzerland 1Denmark 3<strong>UK</strong> 5Spa<strong>in</strong> 9France 10Germany 11Ne<strong>the</strong>rlands 12United States 15Ireland 20Italy 28S<strong>in</strong>gapore 47Denmark 3<strong>UK</strong> 11United States 12Switzerland 19Spa<strong>in</strong> 22Germany 31Ne<strong>the</strong>rlands 42France 44Italy 69Ireland 82S<strong>in</strong>gapore 124Switzerland 1France 9Denmark 10Ireland 15<strong>UK</strong> 19Spa<strong>in</strong> 23Italy 24Germany 30Ne<strong>the</strong>rlands 35S<strong>in</strong>gapore 51United States 86Sources:1. DECC April 2014. Energy Trends section 5: electricity2. Eurostat 2013. Gas prices <strong>for</strong> <strong>in</strong>dustrial consumers3. Eurostat 2013. Electricity prices <strong>for</strong> <strong>in</strong>dustrial consumers
44 <strong>Invest</strong> <strong>in</strong> <strong>the</strong> <strong>UK</strong>: <strong>your</strong> spr<strong>in</strong>gboard <strong>for</strong> <strong>global</strong> <strong>growth</strong><strong>Invest</strong> <strong>in</strong> <strong>the</strong> <strong>UK</strong>: <strong>your</strong> spr<strong>in</strong>gboard <strong>for</strong> <strong>global</strong> <strong>growth</strong>45Innovation EcosystemThe <strong>UK</strong> has a rich heritage of discovery and <strong>in</strong>novation – <strong>the</strong> <strong>UK</strong> has produced 88 Nobel Prizew<strong>in</strong>ners <strong>in</strong> scientific discipl<strong>in</strong>es, more than any o<strong>the</strong>r country apart from <strong>the</strong> USA. But we are notsimply a nation of <strong>in</strong>ventors. We cont<strong>in</strong>ue to <strong>in</strong>vest heavily <strong>in</strong> an <strong>in</strong>novation system that turnsideas <strong>in</strong>to commercial success.Figure 1. Ownership of R&D per<strong>for</strong>med by bus<strong>in</strong>esses <strong>in</strong> <strong>the</strong> <strong>UK</strong> (1993-2012) 380%70%<strong>UK</strong>Rest of <strong>the</strong> world60%<strong>UK</strong> <strong>in</strong>novation: <strong>the</strong> headl<strong>in</strong>esThe highest rated majoreconomy <strong>in</strong> <strong>the</strong> GlobalInnovation IndexOver half of bus<strong>in</strong>essR&D expenditure <strong>in</strong> <strong>the</strong><strong>UK</strong> is by <strong>for</strong>eign-ownedbus<strong>in</strong>essesCollaboration betweenuniversities andbus<strong>in</strong>ess rated as<strong>the</strong> most effectiveamong Europe’s majoreconomiesHighest researchproductivity among <strong>the</strong>top research nationsSecond only to <strong>the</strong>USA among OECDcountries <strong>for</strong> <strong>the</strong> shareof <strong>the</strong> labour <strong>for</strong>cework<strong>in</strong>g <strong>in</strong> R&DRanked ahead ofall of our majorcompetitors <strong>for</strong> <strong>the</strong>quality and securityof our <strong>in</strong>tellectualproperty systemInnovation makes bus<strong>in</strong>ess moreproductive – which <strong>in</strong> turn makesour economy more competitive andmore responsive to change. Fromrobotics to life sciences, and fromaerospace to <strong>the</strong> creative <strong>in</strong>dustries,<strong>in</strong>ternational companies use thisenvironment to develop marketlead<strong>in</strong>gproducts and services.Innovation per<strong>for</strong>manceInternational benchmark<strong>in</strong>gstudies confirm <strong>the</strong> strength of our<strong>in</strong>novation environment. We are <strong>the</strong>top-rated major world economy <strong>in</strong><strong>the</strong> Global Innovation Index. 1 This<strong>in</strong>dex highlights particular strengths<strong>in</strong> our higher education sector, <strong>the</strong>ease with which firms can accesscredit, <strong>the</strong> proportion of knowledge<strong>in</strong>tensiveemployment anduniversity-bus<strong>in</strong>ess collaboration.The level of <strong>in</strong>vestment <strong>in</strong> <strong>UK</strong>-basedresearch and development (R&D) by<strong>for</strong>eign-owned companies shows justhow competitive our offer is.In 2011 <strong>the</strong> <strong>UK</strong> attracted almostUS$7 billion of overseas-f<strong>in</strong>ancedR&D. This is:• The same as Canada, F<strong>in</strong>land,Japan, Ch<strong>in</strong>a and Russia comb<strong>in</strong>ed.• More than ei<strong>the</strong>r France orGermany (US$4 billion each).• Just under half that of <strong>the</strong> USA. 251%298Global Innovation Index2014 – top five andselected rank<strong>in</strong>gs1 Switzerland2 <strong>UK</strong>3 Sweden4 F<strong>in</strong>land5 Ne<strong>the</strong>rlands6 USA7 S<strong>in</strong>gapore8 Denmark11 Ireland13 Germany22 France27 Spa<strong>in</strong>31 ItalySource: Cornell University/INSEAD/WIPO“The R&D landscape<strong>in</strong> <strong>the</strong> <strong>UK</strong> is good andgett<strong>in</strong>g stronger. Wehave great l<strong>in</strong>kages withR&D <strong>in</strong>stitutions andnetworks.”- Airbus, world lead<strong>in</strong>gcommercial aircraftmanufacturerIn 2011 and 2012 just over half of bus<strong>in</strong>essR&D expenditure <strong>in</strong> <strong>the</strong> <strong>UK</strong> was by <strong>for</strong>eignownedbus<strong>in</strong>esses 3<strong>Invest</strong>ments <strong>in</strong> <strong>UK</strong>-based R&D made by<strong>in</strong>ternational companies <strong>in</strong> 2012/13 – <strong>the</strong>highest 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,<strong>the</strong> University of Liverpooland Unilever are develop<strong>in</strong>ga state-of-<strong>the</strong>-art materialschemistry research hub withopen-access facilities. Thehub will accelerate researchand reduce new productdiscovery times <strong>in</strong> sectorssuch as susta<strong>in</strong>able energy,pharmaceutical and pa<strong>in</strong>tand coat<strong>in</strong>gs.The Research Councils <strong>UK</strong>’sonl<strong>in</strong>e gateway to publiclyfunded research enables youto search <strong>for</strong> and analyse<strong>in</strong><strong>for</strong>mation on <strong>the</strong> latest<strong>in</strong>novative research <strong>in</strong> <strong>the</strong> <strong>UK</strong>(http://gtr.rcuk.ac.uk/).Access to a world-classacademic and researchenvironment…Our science and research <strong>in</strong>stitutionsgenerate <strong>the</strong> knowledge that drives<strong>in</strong>novation, us<strong>in</strong>g talent from all over<strong>the</strong> world.• The <strong>UK</strong> has over 170 universitiesand <strong>in</strong>stitutes of higher educationcarry<strong>in</strong>g out different comb<strong>in</strong>ationsof teach<strong>in</strong>g and research.• Our universities <strong>in</strong>clude some of <strong>the</strong>very best <strong>in</strong> <strong>the</strong> world – four of <strong>the</strong>top six accord<strong>in</strong>g to <strong>the</strong> QS WorldUniversities Rank<strong>in</strong>gs. 5You can benefit from <strong>the</strong> <strong>UK</strong>’suniversity expertise through accessto lead<strong>in</strong>g scientists, designers andnext generation technologies. In 2012-13 <strong>UK</strong> universities earned nearly £3.6billion from services to bus<strong>in</strong>ess ando<strong>the</strong>rs, <strong>in</strong>clud<strong>in</strong>g <strong>the</strong> commercialisationof new technology. 6 The WorldEconomic Forum rate <strong>the</strong> collaborationbetween universities and bus<strong>in</strong>ess<strong>in</strong> <strong>the</strong> <strong>UK</strong> as <strong>the</strong> most effective ofEurope’s major economies. 7… and a labour <strong>for</strong>ce gearedup <strong>for</strong> R&DThe <strong>UK</strong> has 250,000 active researcherswork<strong>in</strong>g ei<strong>the</strong>r <strong>in</strong> higher educationor bus<strong>in</strong>ess. 8 Science has become<strong>in</strong>creas<strong>in</strong>gly important across all sectorsof our economy; 5.8 million people work<strong>in</strong> science-based roles, one <strong>in</strong> five of<strong>the</strong> labour <strong>for</strong>ce. This is projected to<strong>in</strong>crease to 7.1 million people by 2030. 9We are second only to <strong>the</strong> USA amongOECD countries <strong>for</strong> <strong>the</strong> share of <strong>the</strong>labour <strong>for</strong>ce work<strong>in</strong>g <strong>in</strong> R&D, <strong>in</strong>clud<strong>in</strong>gdesign, software and database activitiesand build<strong>in</strong>g organisational knowledge. 10Our <strong>in</strong>fluence <strong>in</strong> <strong>the</strong> research world isdisproportionate to our size. With lessthan one percent of <strong>the</strong> <strong>global</strong> population,<strong>the</strong> <strong>UK</strong> accounts <strong>for</strong>:• 6.4 percent of <strong>global</strong> journal articles.• 11.6 percent of citations.• 15.9 percent of <strong>the</strong> world’s mosthighly cited articles.Our research productivity is <strong>the</strong> highestand ris<strong>in</strong>g among top research nationsboth <strong>in</strong> terms of publications andcitations per unit of spend. 11
46 <strong>Invest</strong> <strong>in</strong> <strong>the</strong> <strong>UK</strong>: <strong>your</strong> spr<strong>in</strong>gboard <strong>for</strong> <strong>global</strong> <strong>growth</strong><strong>Invest</strong> <strong>in</strong> <strong>the</strong> <strong>UK</strong>: <strong>your</strong> spr<strong>in</strong>gboard <strong>for</strong> <strong>global</strong> <strong>growth</strong>47Our Catapult Centres• High Value Manufactur<strong>in</strong>g• Cell Therapy• Offshore Renewable Energy• Satellite Applications• Connected Digital Economy• Future Cities• Transport SystemsOpen<strong>in</strong>g <strong>in</strong> 2015• Energy Systems• Precision Medic<strong>in</strong>eThe quality <strong>in</strong>frastructureThe <strong>UK</strong> is a world leader <strong>in</strong> <strong>the</strong> scientific measurementand standards that underp<strong>in</strong> <strong>in</strong>novation and technologydevelopment. The British Standards Institution (BSI) is <strong>the</strong>market lead<strong>in</strong>g <strong>global</strong> standards body. Con<strong>for</strong>m<strong>in</strong>g 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 excellence<strong>in</strong> develop<strong>in</strong>g and apply<strong>in</strong>g <strong>the</strong> most accurate measurementstandards available. NPL works directly with over 2,400companies every year, br<strong>in</strong>g<strong>in</strong>g more than £630 million off<strong>in</strong>ancial benefits to bus<strong>in</strong>ess through measurement <strong>in</strong>novation.The eight great technologiesCase studyBSI <strong>in</strong>fluenceBSI operates around <strong>the</strong> world toencourage <strong>the</strong> use of British andEuropean standards. In December 2013<strong>the</strong> <strong>UK</strong> and Ch<strong>in</strong>a signed an agreementto recognise each o<strong>the</strong>r’s standards – <strong>the</strong>first agreement of its type entered <strong>in</strong>to bya Ch<strong>in</strong>ese standards authority.Help<strong>in</strong>g you turnideas <strong>in</strong>to productsThe Technology Strategy Board(TSB) is <strong>the</strong> <strong>UK</strong>’s <strong>in</strong>novation agencyand our ma<strong>in</strong> way of support<strong>in</strong>gbus<strong>in</strong>ess-led technology <strong>in</strong>novation.TSB can help you to:• Br<strong>in</strong>g products and servicesmore quickly to market.• Access R&D facilities.• Connect with research orbus<strong>in</strong>ess partners.• Access fund<strong>in</strong>g throughcompetitions to reduce <strong>the</strong> riskfrom <strong>in</strong>novation projects.TSB’s network of Catapult Centres helpbus<strong>in</strong>esses access advice and cutt<strong>in</strong>gedgefacilities – allow<strong>in</strong>g you to takeTax <strong>in</strong>centivesDon’t let concerns about <strong>the</strong> cost and riskof R&D threaten <strong>the</strong> commercialisationof <strong>your</strong> <strong>in</strong>novations. Our tax <strong>in</strong>centivesencourage <strong>in</strong>novation <strong>in</strong> bus<strong>in</strong>essesof every size, from start-ups to <strong>global</strong>enterprises. You can f<strong>in</strong>d out more about<strong>the</strong>se <strong>in</strong>centives on page 21.Protect<strong>in</strong>g <strong>your</strong><strong>in</strong>tellectual propertyThe <strong>UK</strong> Intellectual Property Office(IPO) helps bus<strong>in</strong>esses, <strong>in</strong>novatorsand entrepreneurs understand how<strong>in</strong>tellectual property (IP) can createvalue from <strong>the</strong>ir ideas, turn<strong>in</strong>g<strong>in</strong>spiration <strong>in</strong>to susta<strong>in</strong>able bus<strong>in</strong>essadvantage of equipment and expertisethat might o<strong>the</strong>rwise be out of reach.Our two national science and <strong>in</strong>novationcampuses (Harwell Ox<strong>for</strong>d and Sci-TechDaresbury) are world-lead<strong>in</strong>g centres<strong>for</strong> science, technology and <strong>in</strong>novation.They are home to a large and diverserange of science and technology-basedorganisations, <strong>in</strong>clud<strong>in</strong>g large-scaleresearch organisations and <strong>in</strong>novativecommercial companies and start-ups.They also give <strong>UK</strong>-based researchersand bus<strong>in</strong>esses access to lead<strong>in</strong>g-edgetechnology facilities that support allscientific discipl<strong>in</strong>es.You can also get support <strong>for</strong> R&Dactivity at a range of o<strong>the</strong>r facilitiesacross <strong>the</strong> <strong>UK</strong>.success. In addition to grant<strong>in</strong>g patents,register<strong>in</strong>g trade marks and designs, <strong>the</strong>IPO can help you to use, manage anden<strong>for</strong>ce <strong>your</strong> IP to achieve its full potential.We are ranked first <strong>in</strong> a comparison of36 country IP systems that assessescost, speed, quality of judges/tribunals,quality of advice and <strong>the</strong> fairness andpredictability of decisions. 12International <strong>in</strong>novators clearly trustour <strong>in</strong>tellectual property system. Theyown 41.5 percent of patents <strong>in</strong> <strong>the</strong> <strong>UK</strong>,compared to 17.4 percent <strong>in</strong> Germany,12.6 percent <strong>in</strong> <strong>the</strong> USA and 2.4 percent<strong>in</strong> Japan. 13 1 <strong>UK</strong>• More than 100 science parks give over3,100 companies access to lead<strong>in</strong>gedgetechnology and research skills ata nearby university or research centre.• A network of over 300 bus<strong>in</strong>ess<strong>in</strong>cubators supports over 12,000high-<strong>growth</strong> technology bus<strong>in</strong>esses <strong>in</strong>sectors such as biomedical, IT and <strong>the</strong>creative <strong>in</strong>dustries.• Clusters of bus<strong>in</strong>esses fromsimilar <strong>in</strong>dustry sectors exist ascentres of excellence and <strong>in</strong>novationacross <strong>the</strong> <strong>UK</strong>.• University Enterprise Zonescreate premises <strong>for</strong> early-stage hightechcompanies to aid collaborationwith universities.Global IntellectualProperty Index 20132 Germany3 Ne<strong>the</strong>rlands4 Sweden5 Australia6 New Zealand7 Switzerland8 France9 Austria10 USA11 Canada12 Ireland12 S<strong>in</strong>gapore14 Spa<strong>in</strong>21 ItalyThe <strong>UK</strong> excels <strong>in</strong> many important areas ofscience and <strong>in</strong>novation. We <strong>in</strong>vest around£6 billion through our research councilsand universities, susta<strong>in</strong><strong>in</strong>g a diversity offund<strong>in</strong>g approaches, foster<strong>in</strong>g <strong>in</strong>ternationalcollaborations and provid<strong>in</strong>g access to <strong>the</strong> bestfacilities and <strong>in</strong>frastructure. The TechnologyStrategy Board also offers significant support,<strong>in</strong>clud<strong>in</strong>g <strong>the</strong> network of Catapult Centres thatare help<strong>in</strong>g companies commercialise newtechnology-based products and services.Through our <strong>in</strong>dustrial strategy (see page 49) we aresupport<strong>in</strong>g <strong>the</strong> development and commercialisation of alltechnologies with potential to create <strong>growth</strong>. We have aparticular focus on ‘eight great technologies’ - big, generalpurpose technologies with wide-rang<strong>in</strong>g applicationsstretch<strong>in</strong>g beyond any s<strong>in</strong>gle <strong>in</strong>dustrial sector. They arealso areas where <strong>the</strong> <strong>UK</strong> is, or has <strong>the</strong> potential to be,world-lead<strong>in</strong>g with <strong>the</strong> right <strong>in</strong>vestment and collaborationbetween researchers, <strong>in</strong>dustry and government.Our <strong>in</strong>vestment is focused on commercialis<strong>in</strong>g <strong>the</strong>se eightgreat technologies at new, lead<strong>in</strong>g edge R&D facilities. Weare also work<strong>in</strong>g with partners on all <strong>the</strong> build<strong>in</strong>g blocks<strong>for</strong> successful commercialisation, <strong>in</strong>clud<strong>in</strong>g regulation,f<strong>in</strong>anc<strong>in</strong>g and access to skills.123Big dataThe next generation of scientific discovery and<strong>in</strong>novation will be driven by analys<strong>in</strong>g massive andmixed data sets. There are big rewards <strong>for</strong> <strong>the</strong> leaders<strong>in</strong> this field - <strong>the</strong> <strong>global</strong> market <strong>for</strong> big data will growfrom US$10 billion to reach US$50 billion by 2017. 14We have one of <strong>the</strong> largest ICT markets <strong>in</strong> Europe,with well-established cloud comput<strong>in</strong>g and data centresectors. We see big data opportunities <strong>in</strong> areas suchas health, education, environment and energy, lifesciences, f<strong>in</strong>ance, government and enterta<strong>in</strong>ment.SatellitesThe ability to harness powerful satellite locationand imag<strong>in</strong>g data creates diverse commercialopportunities. Our space sector has grown by almostten percent a year over <strong>the</strong> last decade, and ourtarget is to make it a £40 billion <strong>in</strong>dustry by 2030. Ourstrengths <strong>in</strong>clude telecommunications, small satellites,satellite propulsion and space applications.Robotics andautonomous systemsOver <strong>the</strong> next 20 years robots and autonomoussystems will revolutionise our economy and society.The <strong>global</strong> market <strong>for</strong> <strong>in</strong>dustrial robotics is currentlyworth over US$25 billion and is <strong>for</strong>ecast to reachUS$37 billion by 2018. 15 The market <strong>for</strong> professionalservice robots will <strong>in</strong>crease from US$3.4 billion toUS$17.1 billion by 2016. 16 Our strengths <strong>in</strong> softwareprogramm<strong>in</strong>g, data handl<strong>in</strong>g and electronics make <strong>the</strong><strong>UK</strong> an ideal bus<strong>in</strong>ess and research environment <strong>for</strong>this field. Strong market opportunities lie <strong>in</strong> develop<strong>in</strong>grobotic applications <strong>for</strong> sectors as diverse as defence,healthcare, manufactur<strong>in</strong>g, agriculture, transport,enterta<strong>in</strong>ment and education.
48 <strong>Invest</strong> <strong>in</strong> <strong>the</strong> <strong>UK</strong>: <strong>your</strong> spr<strong>in</strong>gboard <strong>for</strong> <strong>global</strong> <strong>growth</strong><strong>Invest</strong> <strong>in</strong> <strong>the</strong> <strong>UK</strong>: <strong>your</strong> spr<strong>in</strong>gboard <strong>for</strong> <strong>global</strong> <strong>growth</strong>494567Syn<strong>the</strong>tic biology8 Energy storageSyn<strong>the</strong>tic biology - <strong>the</strong> redesign and eng<strong>in</strong>eer<strong>in</strong>gof biological systems and processes <strong>for</strong> new uses –has wide-rang<strong>in</strong>g applications <strong>in</strong> sectors <strong>in</strong>clud<strong>in</strong>ghealthcare, pharmaceuticals, chemicals, energy,environment, renewables, materials, food andagriculture. We are <strong>in</strong>vest<strong>in</strong>g to take a lead<strong>in</strong>g shareof a <strong>global</strong> market that is <strong>for</strong>ecast to <strong>in</strong>crease fromUS$2.1 billion <strong>in</strong> 2012 to over US$16.7 billion by 2018. 17We have a thriv<strong>in</strong>g research base – only <strong>the</strong> USApublishes more scientific papers <strong>in</strong> this sector.Regenerative medic<strong>in</strong>eAn <strong>in</strong>creas<strong>in</strong>g range of medical conditions aretreatable by regenerative medic<strong>in</strong>e – heal<strong>in</strong>g byreplac<strong>in</strong>g or restor<strong>in</strong>g human cells, tissues ororgans. We plan to take full advantage of <strong>the</strong><strong>global</strong> <strong>growth</strong> <strong>in</strong> this sector, <strong>for</strong>ecast to reachUS$35 billion by 2019 18 - 35 times higher than2012. Our ability to turn ideas <strong>in</strong>to products isenhanced by a large cl<strong>in</strong>ical trials <strong>in</strong>frastructure,strong government research fund<strong>in</strong>g and a wellestablishedregulatory framework. <strong>UK</strong>-basedbiotechnology companies have <strong>the</strong> highest numberof drugs <strong>in</strong> cl<strong>in</strong>ical development <strong>in</strong> Europe. 19Agri-scienceWe have a long history of <strong>in</strong>novation <strong>in</strong> <strong>the</strong> foodand dr<strong>in</strong>k sector – over 8,500 new food and dr<strong>in</strong>kproducts are created <strong>in</strong> <strong>the</strong> <strong>UK</strong> each year, driven b<strong>your</strong> strong research base <strong>in</strong> agriculture, bioscienceand food technologies. 20 Our research priorities<strong>in</strong>clude develop<strong>in</strong>g technologies to:• Improve <strong>the</strong> quality, susta<strong>in</strong>ability, resilience andyield-led profitability of crops and farm animals.• Improve <strong>the</strong> efficiency of agricultural practices.• Manage <strong>the</strong> <strong>in</strong>teractions between soil, water andcrop/animal processes.• Reduce <strong>the</strong> impact of weeds, pests and diseases.Advanced materialsAdvanced materials technology has applications <strong>in</strong>every <strong>in</strong>dustrial sector. It <strong>in</strong>cludes <strong>the</strong> technologyto build material from <strong>the</strong> atom up, designed withcharacteristics not found naturally. We are build<strong>in</strong>gon particular strengths <strong>in</strong> composites, graphene,nanotechnology and additive layer manufactur<strong>in</strong>g(3D pr<strong>in</strong>t<strong>in</strong>g). Our composites sector, <strong>for</strong> example,is <strong>for</strong>ecast to grow by eight percent a year to reach£20 billion by 2020. 21Our commitment to produc<strong>in</strong>g 15 percent of energyfrom renewable sources by 2020 creates majoropportunities <strong>for</strong> energy storage technologies.Innovation <strong>in</strong> this sector could create £12 billion of newbus<strong>in</strong>ess revenue <strong>in</strong> <strong>the</strong> <strong>UK</strong>. 22 We are strong <strong>in</strong> areassuch as ‘mobile’, ‘small scale’ and ‘grid-scale’ energystorage technology solutions. These technologiescan be applied to many sectors <strong>in</strong>clud<strong>in</strong>g automotive,aerospace, <strong>in</strong>frastructure, renewables, portablecomput<strong>in</strong>g, medical, leisure and defence.<strong>UK</strong>TI InnovationGatewayThe <strong>UK</strong> has everyth<strong>in</strong>g you need<strong>for</strong> successful, commercialised<strong>in</strong>novation.With so many potential places andpartners to help you develop marketlead<strong>in</strong>gproducts and services,<strong>UK</strong>TI’s Innovation Gateway can helpby <strong>in</strong>troduc<strong>in</strong>g selected <strong>in</strong>vestmentand R&D opportunities <strong>in</strong> scienceand <strong>in</strong>novation to large <strong>in</strong>ternationalfunds and corporates. You can f<strong>in</strong>dmore <strong>in</strong><strong>for</strong>mation about <strong>the</strong> <strong>UK</strong>TIInnovation Gateway on page 55.Sources:1. Cornell University, INSEAD & World Intellectual Property Organisation 2013.Global Innovation Index 20132. OECD Ma<strong>in</strong> Science & Technology Indicators (2013/2). Purchas<strong>in</strong>g power parity dollars at 2005 prices3. ONS 2013. Bus<strong>in</strong>ess enterprise research and development, 20124. <strong>UK</strong>TI 20135. QS Quacquarelli Symonds Limited 2014. QS World University Rank<strong>in</strong>gs 20136. Analysis by HEFCE of <strong>the</strong> 2012-11 Higher Education – Bus<strong>in</strong>ess and Community Interaction (HE-BCI) survey7. World Economic Forum 2013. Global Competitiveness Report 2013-148. OECD MSTI (2013/2) Researcher employment measured <strong>in</strong> full-time equivalent9. Science Council 2011. The Current and Future <strong>UK</strong> Science Work<strong>for</strong>ce by Trends Bus<strong>in</strong>ess Research10. OECD 2013. STI Scoreboard11. Elsevier BV 2013. International Comparative Per<strong>for</strong>mance of <strong>the</strong> <strong>UK</strong> Research Base12. TaylorWess<strong>in</strong>g 2013. Global Intellectual Property Index13. OECD 2014. International co-operation <strong>in</strong> patents: <strong>for</strong>eign ownership of domestic <strong>in</strong>ventions14. Frost and Sullivan 2012. Big Data: The 9 Dimensional Dossier on Revolutioniz<strong>in</strong>g 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. Syn<strong>the</strong>tic Biology Market, Global Industry Analysis, Size, Growth, Shareand Forecast, 2012 – 201818. TriMark Publications 2013. Regenerative Medic<strong>in</strong>e Markets.19. Ernst & Young 2013. Beyond Borders – biotechnology <strong>in</strong>dustry report 201320. Food and Dr<strong>in</strong>k Federation 2011. Bus<strong>in</strong>ess Confidence Survey published December 201121. Ernst & Young scop<strong>in</strong>g study undertaken <strong>for</strong> <strong>UK</strong>TI/BIS22. Low Carbon Coord<strong>in</strong>ation Innovation Group 2012. Technology Innovation Needs Assessment –Heat Summary ReportIndustrial Strategyand CapabilityAs <strong>global</strong> competition <strong>in</strong>tensifies we are focused on economic <strong>growth</strong> as <strong>the</strong> route to enhance ourstatus as <strong>the</strong> most attractive dest<strong>in</strong>ation <strong>for</strong> Foreign Direct <strong>Invest</strong>ment (FDI) <strong>in</strong> Europe. Our offer toyou as an <strong>in</strong>vestor is based on three commitments.• We create market opportunities – by <strong>in</strong>vest<strong>in</strong>g <strong>in</strong> high<strong>growth</strong>technologies and markets we provide <strong>the</strong> conditions<strong>for</strong> you to thrive <strong>in</strong> sectors that will be <strong>the</strong> eng<strong>in</strong>es oftomorrow’s economy.• We make it easy to do bus<strong>in</strong>ess - low taxes, m<strong>in</strong>imumregulation and free and efficient markets create a probus<strong>in</strong>essenvironment that helps you start <strong>your</strong> bus<strong>in</strong>essquickly and expand on <strong>the</strong> <strong>global</strong> stage.• We provide a rich and diverse ecosystem - lead<strong>in</strong>guniversities, a dynamic research base, market maturityand top talent drawn from Europe’s 500 million populationcomb<strong>in</strong>e to make <strong>the</strong> <strong>UK</strong> <strong>the</strong> number one dest<strong>in</strong>ation <strong>for</strong> anyhigh value, technology-driven <strong>in</strong>vestment.Our strategy has five ma<strong>in</strong> strands:}}Skills: We are giv<strong>in</strong>g employers more direct controlover how tra<strong>in</strong><strong>in</strong>g fund<strong>in</strong>g is spent so <strong>the</strong>y can access<strong>the</strong> skills <strong>the</strong>y need. More <strong>in</strong><strong>for</strong>mation on access<strong>in</strong>gskilled labour can be found on page 13.}}Technologies: We are support<strong>in</strong>g <strong>the</strong> development andcommercialisation of technologies <strong>in</strong> which <strong>the</strong> <strong>UK</strong> canlead <strong>the</strong> world. We have a particular focus on ‘eightgreat technologies’ with wide rang<strong>in</strong>g potential andactual <strong>in</strong>dustrial applications and where our advancedresearch expertise gives us <strong>the</strong> edge. See page 47.}}Access to f<strong>in</strong>ance: We are remov<strong>in</strong>g barriers to <strong>the</strong>supply of bus<strong>in</strong>ess f<strong>in</strong>ance by creat<strong>in</strong>g a new bus<strong>in</strong>essbank, help<strong>in</strong>g smaller bus<strong>in</strong>esses <strong>in</strong>vest to succeed andexpand. See page 27.}}Procurement: We are giv<strong>in</strong>g as much advance warn<strong>in</strong>gas possible about our plans to buy goods and servicesand seek <strong>in</strong>vestment <strong>in</strong> <strong>in</strong>frastructure projects. Thisgives you more confidence to plan ahead and <strong>in</strong>vest <strong>in</strong><strong>the</strong> resources needed to w<strong>in</strong> <strong>the</strong>se contracts. We arealso develop<strong>in</strong>g more robust supply cha<strong>in</strong>s. You canf<strong>in</strong>d out more about our approach to procurement onpage 33.}}Industry sector partnerships: We are support<strong>in</strong>gall sectors of <strong>the</strong> economy to become morecompetitive, <strong>in</strong>novative and export-focused. Intensivework is underway <strong>in</strong> 11 sectors where long-termpartnership between bus<strong>in</strong>ess and government isparticularly beneficial.Bus<strong>in</strong>esses are seen as partners <strong>in</strong> <strong>the</strong> <strong>UK</strong>, and this isreflected <strong>in</strong> our <strong>in</strong>dustrial strategy - a long-term, whole-ofgovernmentapproach to support economic <strong>growth</strong>. Thisstrategy gives you <strong>the</strong> confidence to <strong>in</strong>vest <strong>for</strong> <strong>the</strong> long termbased on <strong>the</strong> benefits of jo<strong>in</strong><strong>in</strong>g an economy that creates moreopportunities, more jobs and a competitive edge on <strong>the</strong> worldstage. Government and bus<strong>in</strong>ess have toge<strong>the</strong>r allocated morethan £2 billion to <strong>in</strong>dustrial strategy objectives over ten years,a clear <strong>in</strong>dicator of commitment to <strong>the</strong> success of <strong>UK</strong>-basedbus<strong>in</strong>ess <strong>in</strong> a period of fiscal constra<strong>in</strong>t.Industry sector partnershipsThe 11 sector partnership strategies tell you much about <strong>the</strong>advantages of <strong>in</strong>vest<strong>in</strong>g <strong>in</strong> <strong>the</strong> <strong>UK</strong>. They demonstrate <strong>the</strong>scale of <strong>the</strong> <strong>in</strong>vestment <strong>in</strong> <strong>the</strong> skills, research and technologypush<strong>in</strong>g <strong>UK</strong>-based bus<strong>in</strong>ess to <strong>the</strong> front of <strong>the</strong>se markets. Theyalso set out how <strong>your</strong> bus<strong>in</strong>ess can benefit from our concertedef<strong>for</strong>ts to help <strong>UK</strong> companies export <strong>the</strong>ir goods and services.All <strong>the</strong> strategies are bus<strong>in</strong>ess-led. Each sector strategyis overseen by a council chaired jo<strong>in</strong>tly by governmentand <strong>in</strong>dustry, and five of <strong>the</strong> sectors have <strong>in</strong>dustry-ledorganisations steer<strong>in</strong>g government activity.The eleven sector partnership strategies:AerospaceThere is a predicted <strong>global</strong> need <strong>for</strong> US$4.4 trillionworth of new passenger aircraft and freightersbetween now and 2032. 1 The <strong>UK</strong> has <strong>the</strong> secondlargest aerospace <strong>in</strong>dustry <strong>in</strong> <strong>the</strong> world.Supported by <strong>the</strong> Aerospace Growth Partnership,you can benefit from:• A jo<strong>in</strong>t £2 billion fund<strong>in</strong>g commitment betweengovernment and <strong>in</strong>dustry.• A new Aerospace Technology Institute to advance<strong>the</strong> development of faster, quieter, greener planes.• Fund<strong>in</strong>g <strong>for</strong> 500 Masters degrees <strong>in</strong> AerospaceEng<strong>in</strong>eer<strong>in</strong>g.
50 <strong>Invest</strong> <strong>in</strong> <strong>the</strong> <strong>UK</strong>: <strong>your</strong> spr<strong>in</strong>gboard <strong>for</strong> <strong>global</strong> <strong>growth</strong><strong>Invest</strong> <strong>in</strong> <strong>the</strong> <strong>UK</strong>: <strong>your</strong> spr<strong>in</strong>gboard <strong>for</strong> <strong>global</strong> <strong>growth</strong>51ConstructionThere are big opportunities to capitalise on <strong>global</strong>demand <strong>for</strong> our expertise <strong>in</strong> architecture, designand eng<strong>in</strong>eer<strong>in</strong>g - <strong>the</strong> <strong>UK</strong> is <strong>the</strong> second largest netexporter of construction equipment <strong>in</strong> <strong>the</strong> world,<strong>for</strong> example. 2 We are mak<strong>in</strong>g our construction<strong>in</strong>dustry more efficient, susta<strong>in</strong>able and competitive.We are also:• Extend<strong>in</strong>g trade credit schemes to improve accessto f<strong>in</strong>ance.• Publish<strong>in</strong>g news of future construction projects tohelp companies plan and <strong>in</strong>vest.Agricultural technologyClimate change and <strong>the</strong> grow<strong>in</strong>g <strong>global</strong> populationcreates major opportunities <strong>for</strong> our agriculturaltechnology sector. The <strong>global</strong> agriculturaltechnology sector is currently worth US$400 billion 3and projected to be worth US$1 trillion by 2030. 4Supported by <strong>the</strong> Agri-Tech Leadership Council, youcan benefit from:• Our research expertise – <strong>the</strong> <strong>UK</strong> is ranked as secondonly to <strong>the</strong> USA <strong>for</strong> plant and veter<strong>in</strong>ary sciences.• Support from <strong>the</strong> <strong>in</strong>dustry-led Agri-TechOrganisation to help you <strong>in</strong>vest, expand <strong>your</strong>bus<strong>in</strong>ess and export.• A £70 million Agri-Tech Catalyst support<strong>in</strong>g<strong>in</strong>dustry-led ‘proof of concept’ development ofnear-market <strong>in</strong>novations. In <strong>the</strong> first phaseannounced <strong>in</strong> March 2014, 11 projects benefitedfrom £2.8 million from Government alongside £1.4million from <strong>in</strong>dustry.In<strong>for</strong>mation economyDigital technology is revolutionis<strong>in</strong>g <strong>the</strong> way <strong>the</strong>world does bus<strong>in</strong>ess. Be<strong>in</strong>g left beh<strong>in</strong>d is not anoption. We are help<strong>in</strong>g <strong>UK</strong>-based companies developand adopt new technologies to make <strong>the</strong>m moreefficient and to drive faster economic <strong>growth</strong>.Action <strong>in</strong>cludes:• Support<strong>in</strong>g 1.6 million bus<strong>in</strong>esses to trade onl<strong>in</strong>e.• Establish<strong>in</strong>g <strong>the</strong> world’s first test facility <strong>for</strong>5G mobile technology.• Promot<strong>in</strong>g onl<strong>in</strong>e learn<strong>in</strong>g plat<strong>for</strong>ms <strong>for</strong> use<strong>in</strong> schools.AutomotiveOur automotive sector is thriv<strong>in</strong>g. It produced more than1.5 million cars <strong>in</strong> 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 <strong>the</strong> automotive <strong>in</strong>dustry means you canbenefit from:• The creation of an Advanced Propulsion Centrewith an <strong>in</strong>itial £75 million to develop next generationtechnologies.• Plans to create 7,600 apprenticeships and recruit 1,700university graduates over <strong>the</strong> next five years.• Support from <strong>the</strong> Automotive Organisation to help you<strong>in</strong>vest, grow and export. The organisation is led by JoeGreenwell (<strong>for</strong>merly Chair of Ford <strong>UK</strong>).International educationThe education sector is still <strong>in</strong> <strong>the</strong> early stages of<strong>global</strong>isation and opportunities are grow<strong>in</strong>g. The appealof our world-class universities to <strong>in</strong>ternational studentsis a big advantage. Areas <strong>for</strong> <strong>growth</strong> <strong>in</strong>clude educationtechnology and transnational education, where a highereducation <strong>in</strong>stitution <strong>in</strong> one country offers programmesof study <strong>in</strong> ano<strong>the</strong>r. We have set up <strong>UK</strong>TI Education tohelp <strong>UK</strong>-based bus<strong>in</strong>esses w<strong>in</strong> high-value opportunities<strong>in</strong> overseas markets.Life sciencesSeventeen of <strong>the</strong> 20 biggest pharmaceutical companies<strong>in</strong> <strong>the</strong> world have research and development (R&D),manufactur<strong>in</strong>g and sales sites <strong>in</strong> <strong>the</strong> <strong>UK</strong>. 6 Our lifesciences strategy is creat<strong>in</strong>g an unrivalled ecosystemthat br<strong>in</strong>gs toge<strong>the</strong>r bus<strong>in</strong>esses, researchers, cl<strong>in</strong>iciansand patients to translate discovery <strong>in</strong>to cl<strong>in</strong>ical use.This ecosystem supports pioneers to br<strong>in</strong>g <strong>in</strong>novationto market earlier and more easily, mak<strong>in</strong>g <strong>the</strong> <strong>UK</strong> <strong>the</strong>location of choice <strong>for</strong> <strong>in</strong>vestment. Key actions <strong>in</strong>clude:• Major <strong>in</strong>vestment to support <strong>the</strong> commercialisation ofpromis<strong>in</strong>g research.• A new scheme to provide tax relief <strong>for</strong> smaller, earlystagecompanies.• An above <strong>the</strong> l<strong>in</strong>e R&D tax credit to encourage largescale<strong>in</strong>vestment <strong>in</strong> <strong>in</strong>novation.• A new <strong>in</strong>dustry-led Life Science Organisationwhich can support <strong>your</strong> <strong>in</strong>vestment, <strong>growth</strong> andexport activity.Oil and gasOur world-class offshore oil and gas <strong>in</strong>dustrygives us a major natural advantage. The sector isBrita<strong>in</strong>’s largest <strong>in</strong>dustrial <strong>in</strong>vestor (£11.5 billion<strong>in</strong> 2012) 7 and employs 450,000 people. 8 We arework<strong>in</strong>g <strong>in</strong> partnership with <strong>in</strong>dustry to maximise<strong>the</strong> value from <strong>the</strong>se resources and support<strong>in</strong>novation, skills and <strong>growth</strong> <strong>in</strong> <strong>the</strong> supply cha<strong>in</strong>.Steps taken to achieve this <strong>in</strong>clude:• Establish<strong>in</strong>g a National Centre of Excellence <strong>for</strong>oil and gas technology.• Fund<strong>in</strong>g <strong>for</strong> an ‘extreme’ eng<strong>in</strong>eer<strong>in</strong>g centre thatwill develop technology to withstand <strong>the</strong> world’stoughest environments.NuclearThe <strong>UK</strong> was <strong>the</strong> first country to develop andoperate nuclear power stations successfully,and we are now at <strong>the</strong> <strong>for</strong>efront of <strong>the</strong> renewed<strong>global</strong> <strong>in</strong>terest <strong>in</strong> this energy source. We arework<strong>in</strong>g with <strong>in</strong>dustry to exploit <strong>the</strong> opportunitiesaris<strong>in</strong>g from <strong>the</strong> anticipated <strong>global</strong> <strong>in</strong>vestmentof £930 billion <strong>in</strong> new reactors <strong>in</strong> <strong>the</strong> next twodecades. 9 It is also <strong>for</strong>ecast that £250 billionwill be spent on decommission<strong>in</strong>g reactors over <strong>the</strong>same period. 10 Our <strong>in</strong>vestment <strong>in</strong>cludes:• Fund<strong>in</strong>g <strong>for</strong> <strong>the</strong> National Nuclear Users Facility tosupport research <strong>in</strong>to nuclear technology.• Jo<strong>in</strong><strong>in</strong>g a test reactor programme <strong>in</strong> France todevelop advanced fuels.Offshore W<strong>in</strong>dThe <strong>UK</strong> is <strong>the</strong> <strong>global</strong> leader <strong>in</strong> offshore w<strong>in</strong>d power,with more capacity <strong>in</strong>stalled than <strong>the</strong> rest of <strong>the</strong>world comb<strong>in</strong>ed. We have <strong>the</strong> <strong>in</strong>frastructure and<strong>the</strong> natural environment to ma<strong>in</strong>ta<strong>in</strong> this position,with <strong>the</strong> fastest w<strong>in</strong>d speeds <strong>in</strong> Europe and a largenumber of suitable port sites <strong>for</strong> supply cha<strong>in</strong>manufactur<strong>in</strong>g and operation and ma<strong>in</strong>tenancefacilities. The <strong>in</strong>dustry has <strong>the</strong> potential to create30,000 jobs by 2030. Steps to achieve this <strong>in</strong>clude:• Fund<strong>in</strong>g to help <strong>UK</strong>-based companies takeadvantage of supply cha<strong>in</strong> opportunities.• A new Offshore Renewable Catapult Centre tohelp take <strong>in</strong>novative products from developmentto market.• Dedicated support <strong>for</strong> <strong>in</strong>vestors.Professional and bus<strong>in</strong>ess services<strong>UK</strong> exports of professional bus<strong>in</strong>ess services (<strong>in</strong>clud<strong>in</strong>glaw, accountancy, architecture and advertis<strong>in</strong>g) havedoubled <strong>in</strong> <strong>the</strong> last decade 11 and are second only to <strong>the</strong>USA <strong>in</strong> terms of volume sold to OECD countries. 12We are <strong>in</strong>creas<strong>in</strong>g our exports to emerg<strong>in</strong>g marketsand boost<strong>in</strong>g <strong>the</strong> number of people qualified to work <strong>in</strong><strong>the</strong> sector by:• Recruit<strong>in</strong>g 10,000 Higher Apprenticeships <strong>in</strong> areaslike law and accountancy by 2018.• Us<strong>in</strong>g trade delegations and a network of seniorbus<strong>in</strong>ess envoys to promote <strong>the</strong>se services overseas.Our <strong>in</strong>dustrial strategy will benefitall <strong>UK</strong>-based bus<strong>in</strong>esses byprovid<strong>in</strong>g long-term solutions to<strong>the</strong> issues that have <strong>the</strong> greatestimpact on economic <strong>growth</strong>. Youcan <strong>in</strong>vest <strong>in</strong> <strong>the</strong> <strong>UK</strong> safe <strong>in</strong> <strong>the</strong>knowledge that our bus<strong>in</strong>essenvironment is geared up to helpyou thrive and expand.<strong>UK</strong>TI is connected to, and<strong>in</strong>fluences, every aspect of <strong>the</strong>whole of Government approachto <strong>the</strong> <strong>in</strong>dustrial strategy.This means we can make <strong>your</strong><strong>in</strong>vestment work by tak<strong>in</strong>g<strong>the</strong> same long-term strategicapproach to <strong>your</strong> bus<strong>in</strong>ess needs.F<strong>in</strong>d out how we can work toge<strong>the</strong>ron page 52.Sources:1. Airbus 2013. Global Market Forecast 2013-20322. Construction Equipment Association 2009. The <strong>UK</strong> Construction Equipment Industry3. BIS analysis and Fuglie et al 2011. Research <strong>in</strong>vestments and Market Structure <strong>in</strong> <strong>the</strong> FoodProcess<strong>in</strong>g, Agricultural Input, and Biofuel <strong>in</strong>dustries worldwide4. OECD 2009, The Bioeconomy to 2030: Design<strong>in</strong>g a Policy Agenda5. SMMT 2014. <strong>UK</strong> car manufactur<strong>in</strong>g hits six-year high (onl<strong>in</strong>e)6. HM Government 2012. Strength and Opportunity – annual update December 20127. DECC. Income from and expenditure on <strong>UK</strong>CS exploration, development and operat<strong>in</strong>g activities:annually 1970-20128. Oil and Gas <strong>UK</strong> 2013. Economic Report 20139. World Nuclear Association 2012. The World Nuclear Supply Cha<strong>in</strong>: Outlook 203010. Sherry, A.H. et al, Technology Strategy Board 2010. A Review of <strong>the</strong> <strong>UK</strong>’s Nuclear R&D Capability11. Office <strong>for</strong> National Statistics12. OECD Trade <strong>in</strong> Services data
52 <strong>Invest</strong> <strong>in</strong> <strong>the</strong> <strong>UK</strong>: <strong>your</strong> spr<strong>in</strong>gboard <strong>for</strong> <strong>global</strong> <strong>growth</strong><strong>Invest</strong> <strong>in</strong> <strong>the</strong> <strong>UK</strong>: <strong>your</strong> spr<strong>in</strong>gboard <strong>for</strong> <strong>global</strong> <strong>growth</strong>53<strong>UK</strong> Trade & <strong>Invest</strong>mentWhe<strong>the</strong>r you are a start-up, a medium-sized or family bus<strong>in</strong>ess, a corporate or an <strong>in</strong>stitutional <strong>in</strong>vestor,<strong>UK</strong> Trade and <strong>Invest</strong>ment (<strong>UK</strong>TI) supports <strong>the</strong> realisation of <strong>your</strong> <strong>in</strong>ternational bus<strong>in</strong>ess ambitions.<strong>UK</strong>TI offers flexible support packages <strong>for</strong> every aspect of <strong>your</strong> <strong>in</strong>vestment. Our servicedoesn’t stop once you are based <strong>in</strong> <strong>the</strong> <strong>UK</strong> – it cont<strong>in</strong>ues as <strong>your</strong> bus<strong>in</strong>ess expands<strong>in</strong>ternationally. We have helped thousands of bus<strong>in</strong>esses locate and expand <strong>in</strong> <strong>the</strong> <strong>UK</strong>.We listen to <strong>the</strong>ir feedback to help streng<strong>the</strong>n and improve our services.Our services to <strong>in</strong>ternational <strong>in</strong>vestors <strong>in</strong> <strong>the</strong> <strong>UK</strong> are free of charge and commercial-<strong>in</strong>-confidence. Youcan contact our <strong>Invest</strong>ment Services Team to discuss <strong>your</strong> plans via email at enquiries@ukti-<strong>in</strong>vest.comor by telephone +44(0)20 7333 5442. <strong>Invest</strong>ment staff at a British embassy, high commissionor trade office can also put you <strong>in</strong> touch with <strong>the</strong> <strong>Invest</strong>ment Services Team.<strong>Invest</strong>ment servicesOur tailored service supports you with every aspect of start<strong>in</strong>g and expand<strong>in</strong>g a bus<strong>in</strong>ess.Some of our most frequently provided services are set out below.?Not sure which countryis best <strong>for</strong> <strong>your</strong> bus<strong>in</strong>ess?Compar<strong>in</strong>g <strong>the</strong> benefits of locat<strong>in</strong>g<strong>in</strong> different countries is complicated.It is our job to expla<strong>in</strong> <strong>the</strong> bus<strong>in</strong>essenvironment <strong>in</strong> competitor countries.We provide <strong>the</strong> detailed factual<strong>in</strong><strong>for</strong>mation and market <strong>in</strong>sights thatlet you draw mean<strong>in</strong>gful conclusionsabout <strong>the</strong> <strong>UK</strong>’s competitiveness.No. 1We base our services aroundyou. <strong>UK</strong>TI may be big, butyou get our full attention. Adedicated account manager willact as a s<strong>in</strong>gle po<strong>in</strong>t of contactand <strong>the</strong> gateway to a largenetwork of specialist advisersand policy <strong>in</strong>fluencers.We understand <strong>your</strong> bus<strong>in</strong>esssector. Whatever <strong>in</strong>dustry youwork <strong>in</strong>, we have people whohave worked <strong>in</strong> <strong>your</strong> <strong>in</strong>dustryand understand it. Our sectorspecialists know <strong>the</strong> marketopportunities and have <strong>the</strong>contacts to help you succeed.Already decided to br<strong>in</strong>g<strong>your</strong> bus<strong>in</strong>ess to <strong>the</strong> <strong>UK</strong>?We help you set up bus<strong>in</strong>ess quicklyand efficiently, sav<strong>in</strong>g valuable timeand money by guid<strong>in</strong>g you throughessential steps such as choos<strong>in</strong>g<strong>the</strong> right location, f<strong>in</strong>d<strong>in</strong>g premises,recruit<strong>in</strong>g staff and connect<strong>in</strong>g with<strong>the</strong> value cha<strong>in</strong>. We have specialistscover<strong>in</strong>g all <strong>the</strong> <strong>in</strong>dustry sectors,as well as key issues such as visas,taxation, skills, plann<strong>in</strong>g permissionand f<strong>in</strong>ancial analysis.We know <strong>the</strong> <strong>UK</strong> bus<strong>in</strong>essenvironment <strong>in</strong>side out. We havespecialists on every aspect of <strong>the</strong>policies and procedures that affectbus<strong>in</strong>ess – such as tax, plann<strong>in</strong>gpermission, employment law, visasand grant opportunities - giv<strong>in</strong>g youaccess to straight<strong>for</strong>ward advicewhen you need it.We have a big, <strong>in</strong>fluential network.With <strong>UK</strong>TI offices operat<strong>in</strong>g <strong>in</strong> 107markets around <strong>the</strong> world you geteasy access to our pool of expertiseboth <strong>in</strong> <strong>your</strong> home market and whenbased <strong>in</strong> <strong>the</strong> <strong>UK</strong>. <strong>UK</strong>TI advisers andaccount managers throughout<strong>the</strong> <strong>UK</strong> offer expertise <strong>in</strong> everyAlready established here,but look<strong>in</strong>g to expand <strong>your</strong>bus<strong>in</strong>ess?We can help you develop <strong>the</strong>necessary relationships to expand<strong>your</strong> bus<strong>in</strong>ess <strong>in</strong> <strong>the</strong> <strong>UK</strong> and export<strong>in</strong>to European and <strong>global</strong> markets. Thiscould <strong>in</strong>clude: connect<strong>in</strong>g you with<strong>in</strong>novation support <strong>for</strong> new productsand services; us<strong>in</strong>g our overseasnetwork to <strong>in</strong>crease <strong>your</strong> exports;or help<strong>in</strong>g you access <strong>the</strong> f<strong>in</strong>ance tosupport <strong>your</strong> expansion plans.The <strong>UK</strong> is <strong>the</strong> number one dest<strong>in</strong>ation <strong>for</strong> <strong>in</strong>ternational bus<strong>in</strong>ess <strong>in</strong> Europe.<strong>UK</strong>TI makes <strong>your</strong> <strong>in</strong>vestment work because…aspect of sett<strong>in</strong>g up and expand<strong>in</strong>ga bus<strong>in</strong>ess. Through our embassies,high commissions and trade and<strong>in</strong>vestment offices, we have dedicatedrepresentation at <strong>the</strong> major economicorganisations, <strong>in</strong>clud<strong>in</strong>g <strong>the</strong> EU, WorldBank, IMF and United Nations.Your long-term successmatters to us. It’s not just aboutbr<strong>in</strong>g<strong>in</strong>g you here. Our service isbased on build<strong>in</strong>g an understand<strong>in</strong>gof <strong>your</strong> long-term strategicobjectives and help<strong>in</strong>g you achieve<strong>the</strong>m. Once established you canbenefit from all <strong>the</strong> services andsupport that <strong>UK</strong> bus<strong>in</strong>esses get tosucceed <strong>in</strong> overseas markets.}}Access<strong>in</strong>g market opportunities.We can help you assess and quantifymarket opportunities <strong>in</strong> <strong>the</strong> <strong>UK</strong> andtarget <strong>the</strong> right channels <strong>for</strong> <strong>growth</strong>.}}Relationship build<strong>in</strong>g. We can<strong>in</strong>troduce you to <strong>the</strong> people andorganisations that can take <strong>your</strong>bus<strong>in</strong>ess <strong>for</strong>ward, <strong>in</strong>clud<strong>in</strong>g <strong>in</strong>dustryleaders, service suppliers and centresof research and development (R&D)excellence.}}Sett<strong>in</strong>g up <strong>in</strong> <strong>the</strong> <strong>UK</strong>. We can helpyou to register <strong>your</strong> company andadvise on <strong>the</strong> type of structure thatsuits <strong>your</strong> needs.}}F<strong>in</strong>d<strong>in</strong>g/expand<strong>in</strong>g <strong>your</strong> <strong>UK</strong> base.With access to detailed regionaland local <strong>in</strong><strong>for</strong>mation we can helpyou identify <strong>the</strong> right location <strong>for</strong><strong>your</strong> bus<strong>in</strong>ess, and even organisevisits so you can compare differentoptions. If you are th<strong>in</strong>k<strong>in</strong>g of build<strong>in</strong>gnew premises we can also advise onplann<strong>in</strong>g procedures.}}Tax support. We will expla<strong>in</strong> how ourtax system affects <strong>your</strong> bus<strong>in</strong>ess,and how to benefit from <strong>the</strong> various<strong>in</strong>centives and allowances on offer. Ourtax specialists can also help you compare<strong>the</strong> tax regimes of different countries.}}Visa applications. We will expla<strong>in</strong>how <strong>the</strong> <strong>UK</strong> visa system works, andprovide <strong>in</strong><strong>for</strong>mation and guidance on<strong>the</strong> different visas available, whe<strong>the</strong>ryou are an <strong>in</strong>vestor, entrepreneur,bus<strong>in</strong>ess visitor or company employee.Our visa specialist can also help you tounderstand how to br<strong>in</strong>g skilled workersto <strong>the</strong> <strong>UK</strong> from overseas.Creat<strong>in</strong>g value value from from start start ups to ups corporates to corporates<strong>UK</strong>TI develops bespoke programmes <strong>in</strong> support of each segment of <strong>the</strong><strong>in</strong>ward <strong>UK</strong>TI <strong>in</strong>vestor develops value bespoke cha<strong>in</strong> programmes <strong>in</strong> support of each segmentof <strong>the</strong> <strong>in</strong>ward <strong>in</strong>vestor value cha<strong>in</strong>.High Growth Potential<strong>UK</strong>TI ServicesSirius ProgrammeGlobal Entrepreneurs ProgrammeAccess to networks and <strong>the</strong>entrepreneur ecosystemInternational trade (export) advice<strong>UK</strong> Product offerSeed Enterprise <strong>Invest</strong>ment SchemeEnterprise <strong>Invest</strong>ment SchemeR&D Tax Credit /Corporate Tax ReliefCatapult CentresMedium and Large<strong>UK</strong>TI ServicesRelationship managementInternational trade (export) adviceSector Trade & <strong>Invest</strong>mentOrganisationsAccess to <strong>in</strong>dustry networks andsector ecosystems<strong>UK</strong> Product offerEnterprise <strong>Invest</strong>ment SchemeR&D Tax Credit/Corporate Tax ReliefEnterprise ZonesCatapult CentresInnovation Gateway}}Recruit<strong>in</strong>g skilled staff. We willadvise you on <strong>the</strong> most effectiverecruitment routes, us<strong>in</strong>g ourknowledge of recruitment agenciesand contacts with top universities.We will also direct you to governmentprogrammes and fund<strong>in</strong>g thatsupport work<strong>for</strong>ce tra<strong>in</strong><strong>in</strong>g andcan help ma<strong>in</strong>ta<strong>in</strong> <strong>your</strong> long-termcompetitiveness.}}Access<strong>in</strong>g f<strong>in</strong>ance. We will guideyou through <strong>the</strong> many options <strong>for</strong>rais<strong>in</strong>g f<strong>in</strong>ance <strong>in</strong> <strong>the</strong> <strong>UK</strong>, <strong>in</strong>clud<strong>in</strong>gbanks, bus<strong>in</strong>ess angels (high networth <strong>in</strong>dividuals who provide capital<strong>for</strong> bus<strong>in</strong>esses), private equity andventure capital and stock exchangelist<strong>in</strong>g.Institutional <strong>Invest</strong>ors<strong>UK</strong>TI ServicesRelationship managementRegeneration <strong>Invest</strong>mentOrganisation/ onl<strong>in</strong>e plat<strong>for</strong>mInfrastructure and regenerationpitch booksInfrastructure and regenerationpipel<strong>in</strong>es<strong>UK</strong> Product offerRegeneration <strong>Invest</strong>ment Plan<strong>UK</strong> Infrastructure GuaranteeEnterprise ZonesNational Infrastructure PlanInnovation Gateway
54 <strong>Invest</strong> <strong>in</strong> <strong>the</strong> <strong>UK</strong>: <strong>your</strong> spr<strong>in</strong>gboard <strong>for</strong> <strong>global</strong> <strong>growth</strong><strong>Invest</strong> <strong>in</strong> <strong>the</strong> <strong>UK</strong>: <strong>your</strong> spr<strong>in</strong>gboard <strong>for</strong> <strong>global</strong> <strong>growth</strong>55<strong>UK</strong>TI: a plat<strong>for</strong>m <strong>for</strong> <strong>growth</strong>Market opportunity and sectorspecialist support• <strong>UK</strong>TI can support <strong>your</strong> expansion <strong>in</strong>to <strong>the</strong> <strong>UK</strong>from 51 markets• Market opportunity assessment• Supply cha<strong>in</strong> and market <strong>in</strong>troductions• Connection to service providersExport development• Access our <strong>UK</strong>TI <strong>global</strong> export expansionsupport <strong>in</strong> 107 markets• Market opportunity assessment• Tradeshow access• Export communications review• Overseas market <strong>in</strong>troduction service• Market visit support• Export F<strong>in</strong>ance GuaranteePeople and access<strong>in</strong>g Talent• Visa guidance• Locat<strong>in</strong>g work<strong>for</strong>ce and access<strong>in</strong>g skills• Tra<strong>in</strong><strong>in</strong>g and development guidance• Employment regulations guidance• Location identification and development• Site location supportPlann<strong>in</strong>g Permission Process Guidance• Relocation support• Free access to serviced office whilst youestablish <strong>your</strong> operations*• Introduction to local government andbus<strong>in</strong>ess authoritiesLocation identification anddevelopment• Site location support• Plann<strong>in</strong>g permission process guidance• Relocation support• Free access to serviced office whilst youestablish <strong>your</strong> operations*• Introduction to local government and bus<strong>in</strong>essauthorities* Conditions apply. Not available <strong>in</strong> all areas.For all new and exist<strong>in</strong>g <strong>UK</strong>-based bus<strong>in</strong>essesF<strong>in</strong>ancial guidance• Sign post to grants• Taxation guidance and <strong>in</strong>terpretation• Network to <strong>in</strong>termediaries• F<strong>in</strong>ancial modell<strong>in</strong>g support<strong>UK</strong>’s Innovation Gateway• Access to an exclusive pool of commercial <strong>UK</strong><strong>in</strong>novation projects and companies• Navigate <strong>UK</strong> research councils and universitiesState aid fund<strong>in</strong>g guidance•Signpost<strong>in</strong>g to state aid fund<strong>in</strong>g options available<strong>in</strong>clud<strong>in</strong>g access to f<strong>in</strong>ance <strong>for</strong> start ups and SMEs• Research, development and <strong>in</strong>novation.• Tra<strong>in</strong><strong>in</strong>g• Di m<strong>in</strong>imis aid• Bus<strong>in</strong>ess expansion <strong>in</strong>to assisted areas• Environmental protection and remediationSpecialist servicesand programmesWe offer specific types of support <strong>for</strong> <strong>the</strong>biggest <strong>in</strong>vestment opportunities, or wheretargeted action helps to remove barriers tonew bus<strong>in</strong>ess <strong>in</strong>vestment.Industry-led sector organisationsAs part of our partnership approach to our <strong>in</strong>dustrialstrategy we have set up <strong>in</strong>dustry-led organisations <strong>for</strong> fivesectors: agricultural technology, automotive, f<strong>in</strong>ancial andprofessional services, life science and offshore w<strong>in</strong>d. Theseorganisations are led by figures with a wealth of <strong>in</strong>dustryexperience, and can provide hands-on support to help you<strong>in</strong>vest, expand <strong>your</strong> bus<strong>in</strong>ess <strong>in</strong> <strong>the</strong> <strong>UK</strong> and export.The <strong>in</strong>frastructure and regeneration pipel<strong>in</strong>esWe can direct you to credible, <strong>UK</strong> <strong>in</strong>dustry-backeddevelopment <strong>in</strong>frastructure and regenerationopportunities throughout <strong>the</strong> country. To help <strong>in</strong>vestorsplan ahead we publish a ‘pipel<strong>in</strong>e’ of current and future<strong>in</strong>vestment opportunities <strong>in</strong> our regeneration and<strong>in</strong>frastructure sectors - a schedule that sets out <strong>the</strong> valueand development stages of <strong>the</strong> various projects.The regeneration and<strong>in</strong>frastructure pipel<strong>in</strong>eRegenerationThe vast majority of large regeneration schemes areprivate-sector led, with f<strong>in</strong>ancial returns generatedthrough new residential, commercial, retail or officedevelopments. We encourage <strong>in</strong>vestment by push<strong>in</strong>gdecision-mak<strong>in</strong>g to <strong>the</strong> appropriate local level,provid<strong>in</strong>g f<strong>in</strong>ancial <strong>in</strong>centives, remov<strong>in</strong>g barriers todevelopment and <strong>in</strong>vest<strong>in</strong>g <strong>in</strong> <strong>the</strong> <strong>in</strong>frastructure vitalto regeneration projects.Key <strong>in</strong>vestment opportunities <strong>in</strong> <strong>the</strong> pipel<strong>in</strong>e <strong>in</strong>clude:• Titanic Quarter, Belfast – £1 billion mixed usewaterfront project.• Paramount London, Ebbsfleet - £1.9 billionleisure resort with studio-based <strong>the</strong>me park.• Clyde Gateway, Glasgow - £5.9 billioncommercial, residential and leisure development.• Circuit of Wales – £300 million automotivecentredproject <strong>in</strong>clud<strong>in</strong>g <strong>in</strong>ternationalmotorsports track.Infrastructure<strong>UK</strong> <strong>in</strong>frastructure (<strong>in</strong>clud<strong>in</strong>g energy, water andtransport projects) has proved an attractivemarket <strong>for</strong> <strong>global</strong> <strong>in</strong>vestors, with <strong>for</strong>eign ownershipstand<strong>in</strong>g at about 40 percent. There are hugeopportunities <strong>in</strong> <strong>the</strong> pipel<strong>in</strong>e, supported by a stableregulatory environment and a range of marketsupport mechanisms. We have published plans tocomplete projects and programmes worth over£375 billion over <strong>the</strong> next 20 years.Key <strong>in</strong>vestment opportunities <strong>in</strong> <strong>the</strong> pipel<strong>in</strong>e <strong>in</strong>clude:• Offshore w<strong>in</strong>d - a potential <strong>in</strong>vestmentprogramme of up to £75 billion.• Nuclear – up to eight <strong>in</strong>dividual sites with acapital value per project of £8-9 billion.• High Speed 2 – a high speed rail l<strong>in</strong>e fromLondon to <strong>the</strong> North of England with a potential<strong>in</strong>vestment value estimated at £32 billion.• Airports – upgrades at Heathrow and Gatwickworth £5.5 billion and £900 million respectively,as well as Manchester International Airport andBirm<strong>in</strong>gham.Manufactur<strong>in</strong>g Advisory Service –br<strong>in</strong>g<strong>in</strong>g production back to <strong>the</strong> <strong>UK</strong>Our Manufactur<strong>in</strong>g Advisory Service (MAS) is open<strong>in</strong>g upnew bus<strong>in</strong>ess opportunities. Instead of outsourc<strong>in</strong>g workoverseas, companies are br<strong>in</strong>g<strong>in</strong>g production and serviceprovision back to <strong>the</strong> <strong>UK</strong>. Manufactur<strong>in</strong>g, textiles, softwareproduction and call centre work are just some examples of<strong>the</strong> activity attracted by our healthy and stable economyand strong bus<strong>in</strong>ess environment. If you are look<strong>in</strong>g tobr<strong>in</strong>g supply cha<strong>in</strong> activity to <strong>the</strong> <strong>UK</strong>, or to take advantageof contracts <strong>in</strong> <strong>the</strong> <strong>UK</strong> created by reshor<strong>in</strong>g, MAS is <strong>your</strong>one-stop service.Consider<strong>in</strong>g br<strong>in</strong>g<strong>in</strong>g <strong>your</strong> supply cha<strong>in</strong> activityto <strong>the</strong> <strong>UK</strong>? MAS can:• Help you develop <strong>the</strong> bus<strong>in</strong>ess case <strong>for</strong> reshor<strong>in</strong>g.• Match you with <strong>UK</strong>-based suppliers who meet<strong>your</strong> needs.Based <strong>in</strong> <strong>the</strong> <strong>UK</strong> and ready to take advantage of supplycha<strong>in</strong> contracts created by reshor<strong>in</strong>g? MAS can:• Evaluate <strong>your</strong> capability to meet contractors’ needs.• Help you overcome barriers to exploit<strong>in</strong>g reshor<strong>in</strong>gopportunities.• Tell you about appropriate reshor<strong>in</strong>g opportunities.A dedicated MAS adviser will co-ord<strong>in</strong>ate <strong>the</strong> support youneed, when you need it. Advice and expertise is available<strong>in</strong> areas such as new market opportunities, product andprocess <strong>in</strong>novation, technology and skills developmentand f<strong>in</strong>anc<strong>in</strong>g options.The <strong>UK</strong> - home of <strong>in</strong>novative start-upsIf you are an entrepreneur lead<strong>in</strong>g an early-stagetechnology company overseas, we have a great offer <strong>for</strong>you. Come and set up <strong>your</strong> <strong>global</strong> headquarters <strong>in</strong> <strong>the</strong><strong>UK</strong>. In return, <strong>UK</strong>TI’s Global Entrepreneur Programme(GEP) will help you accelerate <strong>your</strong> products and services<strong>in</strong>to <strong>global</strong> markets. This support is provided by a groupof <strong>in</strong>ternationally successful entrepreneurs – ‘dealmakers’with expertise and a network of contacts to make th<strong>in</strong>gshappen. Our GEP companies have raised approximately£1 billion of venture capital s<strong>in</strong>ce <strong>the</strong> programme beganeight years ago.The <strong>UK</strong> also welcomes <strong>the</strong> world’s most talentedgraduate entrepreneurs. Under <strong>UK</strong>TI’s pioneer<strong>in</strong>g SiriusProgramme, students and recent graduates with anearly-stage bus<strong>in</strong>ess idea can apply to relocate to <strong>the</strong><strong>UK</strong> and get support to fast-track <strong>the</strong>ir bus<strong>in</strong>ess fromidea to reality. The package <strong>in</strong>cludes fund<strong>in</strong>g, a placeon a programme to speed up commercialisation andmentor<strong>in</strong>g support.
56 <strong>Invest</strong> <strong>in</strong> <strong>the</strong> <strong>UK</strong>: <strong>your</strong> spr<strong>in</strong>gboard <strong>for</strong> <strong>global</strong> <strong>growth</strong>Case studyCarbon Clean SolutionsOrig<strong>in</strong>ally based <strong>in</strong> Mumbai,Carbon Clean Solutions used<strong>the</strong> GEP to set up <strong>the</strong> strategicheadquarters <strong>for</strong> its carboncapture technology bus<strong>in</strong>ess <strong>in</strong><strong>the</strong> <strong>UK</strong>. The support receivedresulted <strong>in</strong> <strong>the</strong> companybe<strong>in</strong>g awarded a £3.6 milliongovernment <strong>in</strong>novation grant.The fund<strong>in</strong>g has enabled <strong>the</strong>mto work with two universitiesand an eng<strong>in</strong>eer<strong>in</strong>g firm tocommercialise <strong>the</strong>ir technology.Export servicesOnce established <strong>in</strong> <strong>the</strong> <strong>UK</strong> we canhelp you make <strong>the</strong> most of <strong>your</strong> exportopportunities. Whatever <strong>the</strong> size of<strong>your</strong> company, our trade advisers canhelp you sell successfully to overseasmarkets <strong>for</strong> <strong>the</strong> first time, or expand<strong>in</strong>to new markets.Services you can access to boost <strong>your</strong>exports <strong>in</strong>clude:• Bespoke market and sector research.• The latest <strong>in</strong>telligence on bus<strong>in</strong>essopportunities, <strong>in</strong>clud<strong>in</strong>g tailoredemail alerts from <strong>the</strong> thousands ofleads we identify every month.• A ‘High Value OpportunitiesProgramme’ to help you w<strong>in</strong> largecontracts.• Advice and support from our<strong>in</strong>ternational trade advisers.• Opportunities to take part <strong>in</strong>overseas trade missions, visitsand trade shows.You can also access support from<strong>UK</strong> Export F<strong>in</strong>ance, our export creditagency. <strong>UK</strong> Export F<strong>in</strong>ance can provideguarantees and <strong>in</strong>surance policies <strong>in</strong>challeng<strong>in</strong>g or high-<strong>growth</strong> marketswhere private <strong>in</strong>surers and banks lack<strong>the</strong> capacity to take on <strong>the</strong> risks.<strong>UK</strong> Export F<strong>in</strong>ance works closely wi<strong>the</strong>xporters, banks, buyers and projectsponsors to support exports worldwide.They can:• Insure exporters aga<strong>in</strong>st nonpaymentby overseas buyerswhere private sector <strong>in</strong>surance isunavailable.• Share credit risks with banksto help exporters raise tenderand contract bonds, work<strong>in</strong>gcapital f<strong>in</strong>ance and secur<strong>in</strong>gconfirmations of letters ofcredit from overseas banks.• Support loans to overseas buyersto purchase capital/semi-capitalgoods and services from exporters.You can discuss any eligibilityrequirements <strong>for</strong> <strong>the</strong>se services directlywith <strong>UK</strong> Export F<strong>in</strong>ance: https://www.gov.uk/government/publications/uk-regional-export-f<strong>in</strong>ance-advisors.Alternatively, <strong>UK</strong>TI <strong>in</strong>ternationaltrade advisers <strong>in</strong> <strong>the</strong> <strong>UK</strong>, or trade and<strong>in</strong>vestment staff at <strong>your</strong> nearest Britishembassy, high commission or tradeoffice can put you <strong>in</strong> touch.With a 10% corporate tax rate onpatented <strong>in</strong>ventions, <strong>the</strong> <strong>UK</strong> is <strong>the</strong>perfect location to develop new ideasand drive <strong>your</strong> bus<strong>in</strong>ess.Advice on grants and o<strong>the</strong>r <strong>in</strong>centives<strong>UK</strong>-based bus<strong>in</strong>esses can access awide range of grant fund<strong>in</strong>g and o<strong>the</strong>rsupport from different organisations,often depend<strong>in</strong>g on <strong>the</strong> nature andlocation of <strong>the</strong>ir <strong>in</strong>vestment. We can helpyou understand <strong>your</strong> eligibility <strong>for</strong> thissupport and target <strong>your</strong> applicationseffectively. Three well-establishedexamples of grants and <strong>in</strong>centives<strong>in</strong>clude:Regional Growth Fund. <strong>Invest</strong> <strong>in</strong> certa<strong>in</strong>areas of England and you could beeligible <strong>for</strong> a grant from <strong>the</strong> RegionalGrowth Fund. The fund’s aim is to createjobs, re-balanc<strong>in</strong>g <strong>the</strong> economy <strong>in</strong> areasthat have relied on high levels of publicsector employment. It’s a competitiveapplication process, with <strong>the</strong> level ofgrant available dependent on <strong>the</strong> size of<strong>your</strong> bus<strong>in</strong>ess, <strong>the</strong> <strong>in</strong>vestment locationand <strong>the</strong> number of jobs you create.Advanced Manufactur<strong>in</strong>g SupplyCha<strong>in</strong> Initiative (AMSCI). We set upAMSCI as a fund<strong>in</strong>g scheme to enhance<strong>the</strong> <strong>global</strong> competitiveness of ouradvanced manufactur<strong>in</strong>g supply cha<strong>in</strong>s.If you locate <strong>in</strong> <strong>the</strong> <strong>UK</strong> as a supplier to<strong>the</strong> manufactur<strong>in</strong>g <strong>in</strong>dustry you canapply <strong>for</strong> fund<strong>in</strong>g to support researchand development, skills tra<strong>in</strong><strong>in</strong>g and <strong>the</strong>purchase of capital equipment.The Manufactur<strong>in</strong>g Advisory Service.If you’re br<strong>in</strong>g<strong>in</strong>g a manufactur<strong>in</strong>gbus<strong>in</strong>ess to <strong>the</strong> <strong>UK</strong>, <strong>the</strong> Manufactur<strong>in</strong>gAdvisory Service (MAS) is ready to help.MAS has a team of specialist advisersto support you with bus<strong>in</strong>ess plann<strong>in</strong>g,<strong>in</strong>novation, manufactur<strong>in</strong>g processesand supply cha<strong>in</strong>s.Contact <strong>UK</strong>TIWe are ready to make<strong>your</strong> <strong>UK</strong> <strong>in</strong>vestment work.You can contact our<strong>Invest</strong>ment Services Team todiscuss <strong>your</strong> plans via email atenquiries@ukti-<strong>in</strong>vest.comor by telephone+44(0)20 7333 5442.<strong>Invest</strong>ment staff at a Britishembassy, high commission ortrade office can also put you<strong>in</strong> touch with <strong>the</strong> <strong>Invest</strong>mentServices Team.
<strong>Invest</strong> <strong>in</strong> <strong>the</strong> <strong>UK</strong>: <strong>your</strong> spr<strong>in</strong>gboard <strong>for</strong> <strong>global</strong> <strong>growth</strong>1gov.uk/ukti<strong>UK</strong>TI<strong>UK</strong> Trade & <strong>Invest</strong>ment is <strong>the</strong> Government Department that helps <strong>UK</strong>-basedcompanies succeed <strong>in</strong> <strong>the</strong> <strong>global</strong> economy. We also help overseas companiesbr<strong>in</strong>g <strong>the</strong>ir high-quality <strong>in</strong>vestment to <strong>the</strong> <strong>UK</strong>’s dynamic economy, acknowledgedas Europe’s best place from which to succeed <strong>in</strong> <strong>global</strong> bus<strong>in</strong>ess.DisclaimerWhereas every ef<strong>for</strong>t has been made to ensure that <strong>the</strong> <strong>in</strong><strong>for</strong>mation <strong>in</strong>this document is accurate, nei<strong>the</strong>r <strong>UK</strong> Trade & <strong>Invest</strong>ment nor its parentdepartments (<strong>the</strong> Department <strong>for</strong> Bus<strong>in</strong>ess, Innovation and Skills, and <strong>the</strong>Foreign and Commonwealth Office) accept liability <strong>for</strong> any errors, omissions ormislead<strong>in</strong>g statements, and no warranty is given or responsibility accepted as to<strong>the</strong> stand<strong>in</strong>g of any <strong>in</strong>dividual, firm, company or o<strong>the</strong>r organisation mentioned.To f<strong>in</strong>d out more,scan this code with<strong>your</strong> smartphonewww.gov.uk/ukti© Crown copyright 2014You may re-use this <strong>in</strong><strong>for</strong>mation free of charge <strong>in</strong> any <strong>for</strong>mat or medium, strictly<strong>in</strong> accordance with <strong>the</strong> terms of <strong>the</strong> 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 <strong>in</strong><strong>for</strong>mation <strong>in</strong> <strong>the</strong> material that you wish to use, you will need toobta<strong>in</strong> permission from <strong>the</strong> copyright holder(s) concerned.Any enquiries regard<strong>in</strong>g 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 <strong>in</strong> this document is made of 50 percent recycled waste pulp with50 percent pulp from well-managed <strong>for</strong>ests. This is a comb<strong>in</strong>ation of TotallyChlor<strong>in</strong>e Free and Elemental Chlor<strong>in</strong>e Free. The <strong>in</strong>ks are vegetable oil-based andconta<strong>in</strong> res<strong>in</strong>s from plants/trees, and <strong>the</strong> lam<strong>in</strong>ate on <strong>the</strong> cover is susta<strong>in</strong>able,compostable and can be recycled.Published August 2014by <strong>UK</strong> Trade & <strong>Invest</strong>mentURN <strong>UK</strong>TI/14/968Image Credits: Front cover: © Felix Mackel / Getty Images, Inside front cover: Just<strong>in</strong>Lightley / 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