EDINBURGH has been ranked as the most attractive UK city for foreign direct investment (FDI) outside of London, according to a recent report.
In the last quarter, Edinburgh moved up the attractiveness index to beat both Brighton and Oxford to the top spot outside of London.
The report, which analysed the UK’s top 50 cities, looked at categories such as growth potential, local skills, and local infrastructure.
Edinburgh was commended highly for its public transport services, and though its performance in the skills category fell slightly, it remains strong due to contributions by The University of Edinburgh.
The report was conducted by law firms Wright, Johnston & Mackenzie and Irwin Mitchell, in collaboration with the Centre for Economics and Business Research (Cebr).
Findings also suggest that Edinburgh’s digital infrastructure played a part in its position at the top of the table.
The city’s growth potential has increased since the last quarter, and strong employment growth has been forecasted for 2025.
As well as extensive public transport usage, the report praised the interconnectivity of Edinburgh’s transport network.
Fraser Gillies, Managing Partner at Wright, Johnston & Mackenzie LLP, said: “Edinburgh’s strong performance in the previous report was already impressive, and it is particularly pleasing to see the city move even further up the league table.”
Aberdeen was also seen to move up the ranks, improving by 18 positions which may be due to its position near the North East Scotland Investment Zone.
This zone was enacted in June 2023 and involved up to £80m of targeted investment, tax reliefs, and incentives to support innovation and development in North East Scottish cities.
Liverpool and Cardiff were among those who rose significantly in the FDI attractiveness index, but Reading, Brighton, and Milton Keynes were seen to fall down the table.
The report comes as Labour places the growth of the UK economy as its number one priority, with Keir Starmer taking big steps to tackle unemployment, seen in Tuesday’s (26 NOV) release of the Get Britain Working white paper.
The addition of foreign investment to Edinburgh and other UK cities would increase national employment statistics, as the Department for Business and Trade reports that 71,478 new jobs were created due to FDI in the 2023/24 financial year.
The potential of increased foreign investment in Edinburgh could mean a more stable future for its currently precarious culture sector, as news this week shows that the Edinburgh Fringe has been operating at a loss since 2021.
