Direct investment in UK from EU companies created over 110,000 new jobs since 2012, new figures show

Direct investment in the UK from European companies has created over 110,000 new jobs in the last five years and safeguarded a further 80,000, according to the Government’s own figures.

The new figures from the Department for International Trade show that a total of 9,798 foreign direct investment (FDI) projects were agreed in the UK from the financial year 2012-13 to 2016-17.

Of those, 3,149 of the new projects came from investors based in the EU’s member states, creating 116,407 jobs in the UK and safeguarding a further 80,078.

While Liam Fox, the International Trade Secretary, has previously cited FDI as a reason to be optimistic about investment in Britain, the figures do also show how the UK could be severely affected by crashing out of the EU in the event of Brexit negotiations collapsing.

Chris Leslie, a Labour MP and leading supporter of Open Britain, a campaign group advocating a soft Brexit, told The Independent: “The evidence is there in black and white – membership of the EU single market creates and safeguards thousands upon thousands of British jobs.”

He continued: “Leaving the single market will make it harder it harder for European companies to invest in Britain and any new barriers to trade will put British jobs at risk and damage our economy.

“To protect the investment which is so important for Britain, ministers must put membership of the single market back on the table in the Brexit negotiations.”

The statistics also show that 1,134 – over 30 per cent - of the EU projects were based in the London while just 75 were in Northern Ireland, 131 in Wales and a further 104 in the North East.

It comes after data released earlier this year showed that the UK had retained its title as Europe’s most attractive location for international investment. But concerning signs had emerged over Britain’s investment appeal after Brexit.

According to the figures, released in May, the UK’s share of the European FDI in 2016 fell from 21 per cent to 19 per cent after a stellar performance in 2015, which saw a 20 per cent increase in the number of projects.

A spokesperson for the Department for International Trade said: “One year on since the EU referendum, the UK continues to attract record levels of inward investment with more foreign direct investment projects than ever before – creating hundreds of thousands of jobs.

“Since 2012/13, the vast majority of these new and safeguarded jobs from foreign investment came from outside the EU – more than two thirds.

“We continue to promote the strengths of the UK as a great inward investment destination - with an open, liberal economy and world-class talent - to investors from Europe and across the world.”