World-class companies establish their international research bases in Britain because of the excellence of scientists and specialists produced by our universities. This, in turn, attracts increased investment in leading edge applications, for example in multimedia, telecoms, software, pharmaceuticals and financial services.

International investors can locate their operations anywhere in the world. They choose Britain because of the British people’s creativity and inventiveness. They know that our workforce is flexible and adaptable, and that we enjoy good labour relations. They value our low tax base. They enjoy the potential of a transatlantic bridge to both European and North American markets. They appreciate the Government’s commitment to lasting economic stability. They invest in Britain because they know that Britain invests in Britain – in world-class R&D facilities as well as life-long learning for our workforce.

So when we see that more and more foreign companies are investing in Britain, there can be no better proof that Britain is a worldclass centre for business.

Our continuing strong performance, despite fierce competition and difficult market conditions in a number of key sectors, demonstrates global confidence in our economic and business environment.

Investors also appreciate the Government’s desire to play its full part at the heart of the European Union. This includes driving the reform agenda in Europe and the prospect of joining the single European currency, if the five economic tests laid down by the Chancellor of the Exchequer are met and the British people agree in a referendum. Britain is already the premier inward investment location in Europe. We attract almost a quarter of all the inward investment into the EU. A survey by the Economist Intelligence Unit puts Britain ahead of Germany and France as the best place to do business. The survey highlights the importance of the City of London as a key attraction for inward investors.

London’s pre-eminence as Europe’s financial centre has drawn the European headquarters of major international companies and its innovation and expertise in these markets has made it the natural entry point for Europe. In fact, over a quarter of the world’s largest companies have their headquarters in our capital, and more Fortune Global 500 companies are represented in London than any other European city. The cost of living is also lower than comparable business cities, including Paris and Zurich.

The financial services industry has supported many of the industrial initiatives bringing foreign companies to the UK. London accounts for almost a third of the world market in foreign exchange – more than New York and Tokyo combined. More banks from more countries in the world do business in London than in any other financial centre in the world. Britain has a world class telecommunications infrastructure operated by competitive and innovative service providers which ensures that UK-based businesses are well placed to win in the emerging knowledge-based economy. It leads Europe in Internet use, with a growth rate of almost 300% last year. OECD figures show Britain is only behind the US in investment, in IT and communications equipment.

Britain is fast emerging as the dominant European market place for electronic business solutions, applications and research. British talent is contributing towards tomorrow’s world.

Overseas capital and British know-how are a world-beating combination, meeting the challenges of the new global economy and creating market opportunities and jobs in all sectors.

The creation of the English Regional Development Agencies, in line with the longestablished agencies in Scotland, Wales and Northern Ireland, has meant that we now have a UK-wide network of development agencies. This combination of national and devolved marketing support for investors is unprecedented for a country of this size. The UK has a dominant position in Europe in attracting inward investment. However, as multinational companies are always looking for new efficiencies to reduce costs and incorporate the latest technologies, we must work hard to meet the challenges ahead.

Invest UK, the new modernised branding of the Invest in Britain Bureau, reflects the new era in which the bulk of our communications will be digital. It also mirrors our commitment to the knowledge agenda and the devolution of economic development throughout the UK.

We are well placed to sustain our leading position in attracting investment to the EU in the ew, information-driven economy. Invest UK, its teams in embassies and consulates in key markets worldwide and its partner UK development agencies have a proud record in keeping Britain the first choice for investment in Europe.

To build on this success, Invest UK is working closely with Trade Partners UK as part of British Trade International to provide an even more effective service to investors at home and overseas. Many successful investors go on to be successful exporters or have come to the UK to establish their European hub to supply customers on the continent or around the world. Around half of exports from Britain come from inward investors. In fact, every one percent increase to exports is worth £2bn to the economy.

Investment and export performance show a continuing vote of confidence in Britain from the world's most active companies, both large and small. We, as a government, are determined to keep Britain's position as the world’s premier location for investment.