Barry Gardiner, Shadow Secretary of State for International Trade, commenting on ONS figures for foreign direct investment involving UK companies said:
“Today’s ONS figures show just what the impact of the uncertainty has been under the Tories with UK companies drawing back overseas investment to prepare for Brexit and economic volatility at home.
Investment overseas by UK companies is now at the lowest levels since the year after the global financial crisis. Yet this is the very time when we need to encourage British companies to embrace international trade.
“These signs of falling investor confidence show the damaging impact of the incoherent policies and political uncertainty on business. Sadly there is no sign that this Tory Government has any plan to turn it around.
“As today’s figures remind us, Europe remains the dominant source for inward and outward UK foreign direct investment and the real acid test will be what impact the Brexit vote has had on investment in 2016. It is clear that British companies are highly dependent on a favourable trading regime with Europe. The government must do more to preserve and promote our relationship with our biggest trading partner, the EU. Businesses at home and abroad urgently need certainty about the Government’s plan for leaving the EU to make investment decisions.”