Britain

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On the way to work, London Bridge

A country of some 60 million inhabitants, with a GDP of $2.34 trillion in 2006, and an excellent relationship with the US, the UK has much to offer the international investor. Growth last year stood at 2.7%. Inflation within the UK is below the Organisation for Economic Co-operation and Development (OECD) and EU average, and is expected to remain low.

A wide diversity of regions, from the global financial powerhouse of the City of London, to the fast-growing cities in the Midlands and further north, ensures that whatever conditions the investor is looking for can be found – and, thanks to an excellent internal infrastructure, will be well-linked with potential markets within the UK and further afield.

FDI and trade

The US is by far the biggest foreign investor in the UK, as well as being its secondbiggest trading partner. Over the last five years, US companies have been responsible for almost half of all FDI-driven projects in the UK – a total of 1,059 projects. The next biggest investor, Germany, was responsible for some 138 projects over the same period, representing just 6% of total FDI inflow. 2006 was something of a banner year for foreign direct investment in the UK, with investment possibly driven by preparations for the Olympic Games in 2012, which call for major input into the building of new facilities and development and renewal of the supporting infrastructure.

Employment and Education

Labor market regulations in the UK, including working hours, are the most flexible in Europe, and staffing costs are highly competitive. The UK has a high standard of education with a strong emphasis on vocational education and training. In particular, the country has a strong science and technology base, with world-class design and R&D disciplines.

An international reach

The UK is a popular location for regional headquarters and service centers for companies that operate across Europe. Californian biotech company Gilead Inc, for example, decided to move its European headquarters to London in October 2005. Gilead’s executive vice president, commercial operations, explained at the time that: “We chose the London area as our new European base after a careful appraisal of the options available. There is a good supply of high-quality staff and business support services, a favorable business environment and excellent communication links to the US. Proximity to our investors in London is another advantage.”

Tax and Regulation

The UK’s business environment gives every incentive for companies to grow, innovate and compete in a global marketplace. The UK’s taxation rates, general business charges and social security payments for employers are among the lowest in Europe. The UK also benefits from having the cheapest utilities costs in the EU, and its telecoms industry is one of the most advanced in the world.

company formation

It is advisable to seek professional advice about company formation in the UK. A range of initiatives and grants for companies, including assistance to companies within the area of research and development (R&D), are available. Small to mediumsized enterprises (SMEs) may be able to claim payable tax credits in cash from the Inland Revenue in certain circumstances.

BritishAMERICAN BUSINESS

BritishAmerican Business of New York and London is the leading transatlantic business organization, dedicated to helping its members build their international business. BritishAmerican Business leverages the strengths of its membership base and strategic position to provide a broad range of targeted services to help members build and manage their business, including:

• Platforms to promote their brand, services and products to a high-level transatlantic business audience;
• Access to business and government leaders on both sides of the Atlantic, and to potential clients and business partners;
• Business intelligence and strategies to inform their planning and decisionmaking;
• Business facilities to support the growth and management of their business;
• Occasions for high-quality business networking and client entertainment;
• A voice with governments on policy issues that impact their business.

Contact Information

BritishAmerican Business
United Kingdom
75 Brook Street
London, W1K 4AD
UK
T: +44 20 7290 9888
E-mail: ukinfo@babinc.org
Website: www.babinc.org

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