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The UK’s revamped industrial and trade strategies along with the enhanced role for the Office for Investment – the agency responsible for investment for the UK, present a transformative opportunity to accelerate regional economic growth through smarter inward investment. For the Institute for Economic Development (iED), this calls for a re-evaluation of how investment promotion and facilitation is approached, especially at the subnational level in the UK.
Historically, the UK’s inward investment strategy has been largely reactive, with major deals often emerging opportunistically and landing with Economic Development teams by chance rather than design. Recent economic uncertainties underline the urgency of moving from this reactive posture to a more proactive approach to attracting inward investment as well as domestic investment.
The fDi Report 2025 confirms the UK’s strong position as Europe’s leading destination for foreign direct investment (FDI), attracting 1,000 projects worth $89.1bn, representing 28.6% of total FDI into Europe. Meanwhile, domestic investment is expanding rapidly. The FT’s UK Domestic Outlook shows that it now drives 71% of projects nationwide, although FDIs remain critical, contributing 86% of capital expenditure and 40% of new jobs.
In addition to this, regional data highlights a shift in the investment map beyond London and the South East. The North West (393 projects worth £2.3bn), Yorkshire (352 projects worth £2.1bn), and Scotland (231 projects worth £963m) have demonstrated impressive success, challenging the long-held dominance of the capital and surrounding regions as the UK’s premier investment destinations.
To respond to this evolving landscape, here are my suggested eight key strategies to modernise subnational (inward) investment frameworks and drive inclusive, sustainable growth in the UK:
Investment promotion is resource-intensive, but costs can be reduced by adopting affordable, adaptable technologies. Much like generic patents (such as for medications) lower procurement expenses, IPAs could license standardised CRM systems, digital investor platforms, and automation tools to streamline operations without heavy customisation costs.
A UK-wide certified training program for subnational inward investment professionals would ensure a baseline of excellence in investor servicing. The iED could lead in developing this framework, helping regions attract higher-quality investment and stimulate local economic growth.
Inward investment success depends on responsiveness. Technical knowledge and sector expertise must be decentralised beyond directors and senior managers, empowering officers at all levels with the requisite knowledge to engage confidently with investors, identify emerging opportunities, respond to sector-specific queries and support business retention.
Lead generation is a critical part of investment promotion and facilitation, but building and sustaining pipelines of prospective investors can be costly and resource-intensive for subnational economic development teams. To address this challenge, the Office for Investment could serve as a central “anchor” for lead generation, using its scale and national reach to identify and qualify investor prospects. These leads could then be distributed to subnational teams, who are best placed to follow up, localise the pitch, and convert interest into concrete investments within their regions
To sustain inward investment success, the UK must:
Building local expertise ensures resilient economic growth and reduces reliance on external consultants. The IED CPD programs can fill this gap by expanding offering to suit evolving demands.
An “Approved Inward Investment Agency” certification (similar to customs’ Authorised Economic Operator scheme and the Authorised Economic Development Organisation scheme of the IEDC) could incentivise best practices in transparency, investor support, and economic impact tracking. The iED could help design this benchmark to enhance regional credibility and performance.
Subnational teams must prioritise:
The expanded Office for Investment could support local agencies in adopting these tools to maximise the team’s ability to carry out their economic development responsibilities.
Centralised oversight has often underdelivered (as seen with the Department for Business and Trade). The iED can advocate for independent performance reviews of subnational investment teams, ensuring they remain agile, accountable, and growth-focused.
By implementing these reforms and programs, the UK can unlock regional potential, create quality jobs, and ensure balanced economic growth nationwide.
Ayo Aribidara is Senior Economic Development and Governance Adviser at SageReach Ltd.
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