Edinburgh ‘top city for inward investment appeal’
Study suggests Edinburgh has the highest appeal for inward investment in the UK. London fell to seventh place as a result of high living costs and transport congestion.
20 February 2018Edinburgh has been adjudged the UK’s most appealing city for inward investment in a study conducted by global design and engineering consultancy Arcadis.
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Peter Hogg, UK cities director at Arcadis, said, “All cities have strengths and weaknesses, and no area is fundamentally ‘un-investable’.“The important thing is to recognise which levers need to be pulled – whether that’s more affordable housing, more efficient transport or better digital connectivity – to ensure a city attracts the type of investment it needs. Every region needs to look at what it has, and how it can make the most of it.“Most importantly though, the governance of a city needs to be structured in a way that makes investment easier and more welcome. From the agglomeration of industries and knowledge, facilitated by strong transport links, to identifying opportunities to create growth corridors, such as that proposed for Oxford and Cambridge, we need to see a more joined-up approach between regions.“This will ensure that investment opportunities are focused on the right locations, helping to accelerate growth potential and ultimately realise new sources of competitive advantage.”The report identifies three distinct groupings of cities: established economic centres, future growth hubs and smaller regional cities.It says established centres, such as Edinburgh and London, risk falling in the rankings unless weaknesses are addressed, such as infrastructure and housing capacity.“The sheer volume of work needed in housing and transport infrastructure to sustain these big cities, sharing the benefits of economic success and ensuring long-term ‘investability’ is a major challenge for devolved government,” says Arcadis.
1. Edinburgh
2. Oxford
3. Cambridge
4. Liverpool
5. Coventry
6. Manchester
7. London
8. Glasgow
9. Exeter
10. Birmingham
11. Newcastle
12. Nottingham
13. Belfast
14. Bristol
15. Reading
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Investment appeal in the UK
Based on six elements deemed crucial for attracting future foreign investment – business environment, workforce skills, infrastructure, housing, ‘place’ and city brand – the report, ‘Investing in Britain: Cities Built for the Future’, assessed 24 cities across the country.Edinburgh emerged top of the rankings largely because of its strong economic performance, its high proportion of skilled and educated workers, and its strong sense of ‘place’.The leading university cities of Oxford and Cambridge occupied second and third positions in the rankings while London only came in seventh, scoring poorly in areas such as affordable housing and traffic congestion. In fact, the lack of affordable housing was found to be a downside in six of the top 10 cities, including Edinburgh.Related stories:
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Peter Hogg, UK cities director at Arcadis, said, “All cities have strengths and weaknesses, and no area is fundamentally ‘un-investable’.“The important thing is to recognise which levers need to be pulled – whether that’s more affordable housing, more efficient transport or better digital connectivity – to ensure a city attracts the type of investment it needs. Every region needs to look at what it has, and how it can make the most of it.“Most importantly though, the governance of a city needs to be structured in a way that makes investment easier and more welcome. From the agglomeration of industries and knowledge, facilitated by strong transport links, to identifying opportunities to create growth corridors, such as that proposed for Oxford and Cambridge, we need to see a more joined-up approach between regions.“This will ensure that investment opportunities are focused on the right locations, helping to accelerate growth potential and ultimately realise new sources of competitive advantage.”The report identifies three distinct groupings of cities: established economic centres, future growth hubs and smaller regional cities.It says established centres, such as Edinburgh and London, risk falling in the rankings unless weaknesses are addressed, such as infrastructure and housing capacity.“The sheer volume of work needed in housing and transport infrastructure to sustain these big cities, sharing the benefits of economic success and ensuring long-term ‘investability’ is a major challenge for devolved government,” says Arcadis.
Future growth hubs
The report says that future growth hubs, including cities in the ‘Northern Powerhouse’ and West Midlands, face different pressures. While they benefit from a more balanced housing market, healthy business environment with a sustainable pace of growth and, often, a lack of skills in such cities as Manchester and Birmingham “could be the biggest barrier preventing them from realising their full future potential as an investment destination”.Meanwhile, smaller regional cities “need to consider different levers for attracting investment, building on their specific strengths and opportunities – including better access to schools and hospitals, cheaper housing and a better quality of life”.Top 15:1. Edinburgh
2. Oxford
3. Cambridge
4. Liverpool
5. Coventry
6. Manchester
7. London
8. Glasgow
9. Exeter
10. Birmingham
11. Newcastle
12. Nottingham
13. Belfast
14. Bristol
15. Reading
For related news and features, visit our Enterprise section. Look out for the launch of 2018’s Relocate Awards, entry is now open. Relocate’s new Global Mobility Toolkit provides free information, practical advice and support for HR, global mobility managers and global teams operating overseas.
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