Britain can’t survive on Starmer’s soundbites – industry needs delivery, not more 'missions'

“People say we can’t deliver national renewal,” he said, “but we can and we will. We will stabilise our economy.”

But today, confidence in the UK is waning. One signal is the trickle of investment opportunity that has been steadily leaking from the UK market this year.

AstraZeneca pulled out of its new vaccine research, development and manufacturing plant in northwest England. Ineos backed away from its North Sea infrastructure investment plans. Merck scrapped its already under construction headquarters and research centre in King’s Cross, which was set to open in 2027.

Taken together, the combined financial shortfall is close to £4.5billion, notwithstanding the loss of hundreds of high-quality jobs, ongoing tax revenues and future supplementary investments.

These are deals which were signed and sealed, but will now never be delivered. Why has this happened, and how can we prevent further losses?

The UK has undeniable strengths to draw on when seeking to attract business investment and drive growth. We remain a world-leader in research and development. Our pioneering scientists are consistently pushing the boundaries of our collective knowledge. Four of the top ten universities in the world, and 17 of the top 100, are found in the UK.

However, the ground-breaking science that is produced by our universities is only the first step to harnessing innovation to create social and economic benefit. Evidence shows that in recent times, the UK has a less impressive record of commercialising those scientific discoveries, taking science out of the laboratory and into industry.

Our global share of foreign direct investment dropped from second place in 2017 to eighth in 2023. Between 2023-24 and 2024-25, the number of FDI projects landed in the UK decreased 12%, with a 20% dive in new investment projects. The relative loss of specifically pharmaceutical FDI since 2017 costs the UK an estimated £5.5billion per year in investment. The string of industrial strategies and plans for business from successive governments provides an example of the challenge. The latest iteration has seen much made of its revamped industrial strategy council and sector-specific plans for growth. However, putting plans into action – to drive growth, create jobs and prosperity, and regain the UK’s competitive edge on the world stage - feels as far off as ever.

Likewise, penning a big business investment deal sends a positive message, but the tangible and lasting impact comes later – when promised investment becomes capital asset, and scientific discovery becomes application.

Last week, the government lauded a record-breaking £150billion investment unveiled during US president Trump’s state visit. While this was an apt moment for handshakes, smiles and photographs, it will be decades before the agreement has any chance of being chalked up as a real win.

Cutting a ribbon at a factory opening can be full of pomp and circumstance. Subsequent day-to-day maintenance, repairs, adjustments and breakdowns rarely make for positive headlines or glossy portraits.

Making good on a deal is a less glamourous and more onerous than signing on the dotted line. Yet, without resilient delivery plans and tangible results, pledges of investment and deal announcements are becoming ever cheaper.

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Sharon Todd is the Chief Executive of SCI (formerly the Society of Chemical Industry)

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