UK inward investment soars

British industry: A tempting target for foreign firms

Overseas firms created more than 71,000 jobs in the UK last year following a big increase in the number of inward investment projects, according to government figures.

Between April 2000 and March 2001, there were 869 new foreign-funded projects and business expansions, 15% more than in 1999-2000.

The new investments also created 20,000 more jobs than over the previous 12-month period.

In a written reply to a House of Commons question, trade and industry secretary Patricia Hewitt said: "This performance is proof of global confidence in the UK's economic and business environment."

Hewitt: Bullish on Britain's pulling power

The United States was the biggest investor, with 421 projects, creating almost 40,000 jobs, followed by Germany (71 projects), Canada (56), Japan (51) and France (43).

Ironically, the news came on the same day that US computer maker Compaq announced 4,000 job cuts - some of which may be in the UK - and after a week of dire warnings by British-based firms.

Although she insisted that the UK's performance had been "outstanding", Ms Hewitt warned against complacency in the face of a downturn in the technology sector.