New figures from the Department for Business and Trade show a 12% year-on-year decline in the number of Foreign Direct Investment (FDI) projects landing in the UK, falling to just 1,375 in 2024–2025.
This marks the lowest number of FDI projects since 2020 and raises fresh concerns about the UK’s international competitiveness.
The data underscores the pressing need to deliver on the UK’s Industrial Strategy and support the government’s mission for long-term economic growth.
The downturn has affected nearly every region and sector, with the total number of FDI-backed projects now at its lowest level in five years.
Dr Joe Marshall, Chief Executive of the National Centre for Universities and Business (NCUB) said, “The latest data is particularly concerning in high-value, strategically important sectors.
“The UK saw a 43% drop in creative and media projects, a 20% fall in life sciences, biotechnology and pharmaceuticals, and a 5% decline in ICT investments—all vital to driving productivity, digital transformation and industrial modernisation. FDI into research and development also fell by 26%.”
Dr Marshall added, “FDI is not just capital—it brings global talent, international partnerships, and long-term confidence in the UK economy. Strengthening investment will be essential to deliver the Industrial Strategy and realise the UK’s ambition for innovation-led growth.
Research and innovation are global endeavours, and FDI plays a vital role in sustaining them. The UK must become a more competitive and compelling destination to retain existing business investment and attract new, globally mobile partners.
