§ Mr. MitchellTo ask the Secretary of State for Trade and Industry what assessment he has made of the impact on the levels of inward investment of the UK's decision not to join the single currency; and what steps he has taken to advertise the benefits of that decision to potential inward investors. [58679]
§ Mrs. RocheThe level of inward investment in the UK is unlikely to be significantly affected in the short-term as a result of the Government's decision not to recommend UK membership of the single currency in the first-wave.
The UK attracts a significantly larger share of inward investment than other countries in the EU. This reflects a number of important benefits that we offer including low taxes, the English language, a flexible and adaptable work-force and a commitment to lasting economic stability.
In the short-term, while the UK remains insufficiently converged with the rest of Europe there would be risks for stability in the UK if we joined EMU, and hence for inward investment. However, looking further ahead if the single currency succeeds in promoting stability and strengthening the Single Market, there may be a risk that inward investment decisions at the margin would move against countries perceived to be staying out for the longer term.
The Invest in Britain Bureau continues to promote in all major international markets all the inherent strengths which have made, and will maintain, the United Kingdom as the most attractive European location for inward investment.