In a significant move to bolster the United Kingdom’s economic prospects, Prime Minister Keir Starmer is set to convene the inaugural Council of Nations and Regions next Friday, 11 October, in Scotland. This Council will bring together leaders from across the UK to discuss strategies for boosting investment and economic growth, just three days ahead of the highly anticipated International Investment Summit.

This first-of-its-kind Council is expected to focus on creating a unified approach to capitalizing on investment opportunities and driving growth across all parts of the UK, ensuring that the entire nation benefits from global investor confidence and domestic efforts to strengthen regional economies.

The Council’s formation marks a pivotal step in reshaping the relationship between the UK Government and regional leaders, including the First Ministers of Scotland, Wales, Northern Ireland, as well as regional mayors from across England. By resetting these relationships, the government aims to create a cohesive strategy for securing long-term investment, driving productivity, and raising living standards throughout the UK.

Resetting Relationships, Unlocking Growth

Prime Minister Keir Starmer emphasized the importance of this new partnership model in his statement:

“I’m determined to bring forward a new era of stability, trust, and partnership with businesses, investors, devolved governments, and local leaders to boost the economy and restore the UK’s reputation as one of the best places in the world to do business.”

Starmer went on to explain that the Council of Nations and Regions will move beyond traditional “talking shops” to create meaningful, focused partnerships with a clear aim: redefine the UK’s position on the global stage and unlock the untapped potential across the entire nation. His vision is to ensure that every region, from the major urban centers to rural communities, will be empowered to boost growth and generate wealth for their residents.

A Collective Approach to Economic Revival

Tracy Brabin, Mayor of West Yorkshire, expressed her optimism about the Council’s role in driving growth:

“This new era of genuine partnership working between the government and mayors will help us unleash the potential of our great regions and boost growth. Mayors are champions of their regions at home and abroad, attracting investment, creating good jobs, and putting more money in people’s pockets.”

Brabin emphasized that investments in key areas like transport, housing, and skills are critical for connecting businesses to the talent and financial resources they need to thrive. This collective approach is essential to shaking off the stagnation that has affected parts of the UK economy in recent years. Through close collaboration between local governments, businesses, and the central government, Brabin believes the UK will be well-positioned to face the future with confidence.

International Investment Summit: A Key Moment for the UK Economy

The Council meeting comes just days ahead of the UK Government’s International Investment Summit, which is scheduled to take place in London. The Summit is poised to attract high-profile investors, government officials, and global business leaders, including notable figures like Eric Schmidt, the former CEO and Chairman of Google, who played a pivotal role in transforming Google from a startup into a global tech powerhouse.

In a statement about the upcoming Summit, Schmidt highlighted the critical role artificial intelligence (AI) will play in shaping the global economy:

“Artificial intelligence represents one of the most transformative technologies of our time. It will change how economies everywhere function, and it will determine which countries stay competitive in the decades to come.”

Schmidt praised the UK’s leadership in AI safety and innovation, noting that the country has the opportunity to cement its status as a hub for world-class talent and groundbreaking technological advancements. During the Summit, he is expected to discuss with the Prime Minister how increased investment in AI research and education can further solidify the UK’s position at the forefront of technological progress.

Attracting Global Investment: The Key to UK Prosperity

In addition to Schmidt, the Summit will feature other influential speakers, such as Ruth Porat, President & Chief Investment Officer of Alphabet and Google, Alex Kendall, CEO of autonomous vehicle company Wayve, and Bruce Flatt, CEO of Brookfield Asset Management. These key figures will contribute their insights on how the UK can maintain its status as an attractive investment destination.

Barclays, HSBC, Lloyds Banking Group, and other corporate giants have already committed to sponsoring the Summit. These partnerships with major financial institutions highlight the private sector’s vital role in supporting the government’s economic growth agenda.

C.S. Venkatakrishnan, Group Chief Executive of Barclays, stated:

“The UK’s stability, skills, and history of innovation make it an attractive investment destination. Barclays has made its largest-ever capital investment in the UK to drive economic growth, and we continue to connect both domestic and international investors with opportunities across the country.”

Other corporate leaders have echoed similar sentiments. Georges Elhedery, Group CEO of HSBC, emphasized the critical role of partnerships in fostering growth, particularly as UK businesses continue to lead the way in sectors such as renewable energy, finance, and advanced manufacturing.

Building a Sustainable Future

In addition to boosting investment, the Summit will also serve as a platform for the government to highlight its efforts in climate leadership. The recent launch of the UK’s first carbon capture and storage (CCUS) projects in Teesside and Merseyside will be a key talking point at the event. These projects, expected to create 4,000 jobs and remove over 8.5 million tonnes of carbon emissions annually, represent a major step forward in the UK’s transition to a low-carbon economy.

Greg Jackson, CEO of Octopus Energy, commented on the UK’s leadership in green innovation:

“The UK is at the vanguard of green innovation, brimming with the talent and technology needed to accelerate the global energy revolution. By investing in British renewables and clean tech, we’re not just creating greener energy for people but driving the solutions that will power the world.”

A Vision for National Prosperity

The Summit, which will take place at a historic venue in central London, is more than just a gathering of business leaders and investors. It is an opportunity for the UK Government to establish enduring partnerships with the private sector, build investor confidence, and set out a clear national mission for long-term economic prosperity.

Andrea Rossi, CEO of M&G plc, summed up the importance of the Summit:

“The International Investment Summit is a crucial moment to put the UK back on the investor map, showcase market opportunities, and reinforce how business and government can work in partnership to drive growth.”

With the Summit and the newly established Council of Nations and Regions, Prime Minister Starmer is setting the stage for a new era of economic collaboration, investment, and growth that will not only benefit the UK but position it as a leading force in the global economy.

Conclusion: The Path Forward

As the UK embarks on this new journey toward economic renewal, the focus is squarely on creating opportunities for every part of the nation. Through the collaboration of regional leaders, business stakeholders, and international investors, the government aims to ensure that no community is left behind.

By placing investment and growth at the heart of its agenda, the Prime Minister’s Council of Nations and Regions and the International Investment Summit offer a powerful vision for the future – one where the UK thrives on its diverse strengths and reclaims its place as a global economic leader.

photo source: Google

By: Montel Kamau

Serrari Financial Analyst

7th October, 2024