The particular deal we’re talking about here has been driven in large part by the regulatory differences around AI that have opened up (and will continue to increase) between the UK and the EU. A regulatory divergence which needless to say couldn’t occur if the UK was still in the EU. A Labour government and a light regulatory touch - what could possibly go wrong?
That said it was interesting to hear Nick Clegg’s opinion on the deal today. He thinks the UK is giving away too much access to US companies for little in return and that we are not investing enough in UK technology. A concern probably not helped by this government cancelling £1.3bn of funding for quantum computing as soon as they got into power.
Also interesting that you’ve quoted, word for word, the recent HoC Library report detailing the trend of FDI inflows into the UK. Bit of a shame that you didn’t quote the following paragraph from that report though, which explained how a number of huge M&A deals in 2016 made that year truly exceptional from an FDI perspective, and therefore why you shouldn’t conclude that the Brexit vote has necessarily led to a decline in FDI. Particularly given that the UK FDI inflow data have typically followed the global trend.
For the record, there are another couple of factors which I think should have been included in that report, but weren’t. The first one being a simple explanation of the accounting practices around the balance of payment data, which sees the retained earnings of foreign owned companies in an economy being classified as an FDI inflow. This explains why big swings in an economy’s performance, such as those seen around Covid, can lead to big swings in the FDI data, even though no actual inflows have occurred.
The other related factor is the US TCJA act, which of course led to a huge repatriation of US earnings from 2017 and therefore would have disproportionately impacted the UK FDI inflow data, given the higher stock of US investment in the UK.