Britain has surged to the top of global investment rankings following a new trade agreement with the United States, according to a survey of top finance executives conducted by Deloitte.
The British country has overtaken major economies like the US, Japan, and Middle Eastern nations to become the most attractive destination for investment. Just six months ago, the country ranked sixth in the same survey.
Deloitte credited the dramatic leap to the UK-US trade deal, announced in early May, which has boosted confidence among corporate leaders. Geopolitical instability in the Middle East and fluctuating oil prices have also reduced the relative appeal of rival investment hubs.
“Despite conflict in the Middle East and volatility in oil prices, levels of concern about geopolitical risk fell slightly in the second quarter,” said Ian Stewart, chief economist at Deloitte UK.
“This may reflect an easing of concerns around trade in the light of the UK-US trade deal.”
The agreement was first struck by the US under President Donald Trump’s new trade strategy, which was hailed as a landmark by the British government. It includes tariff reductions on British car exports to the US and protections for the UK aerospace industry. Mr Trump described the UK as truly one of our great allies when the deal was signed.
Chief executive of Deloitte UK, Richard Houston, said the new data highlights renewed confidence in the UK economy.
“This renewed confidence, coupled with a rise in risk appetite, is welcome and underscores the considerable investment potential the UK offers.”
The survey showed that a net 13% of UK finance chiefs now see Britain as a very or somewhat attractive place to invest, placing it in joint first position with India.
Furthermore, 17% of respondents said now is a good time to take business risks, a notable increase in corporate optimism.
The findings provide a timely boost for the Labour Government, which has faced political pressure over recent welfare spending disputes and falling foreign direct investment (FDI) levels. Official figures show that inbound FDI projects dropped to 1,375 last year, a 12% fall from the previous year, and the lowest on record.
Chancellor Rachel Reeves welcomed the report that “Finance leaders see the UK as the best place in the world to invest. Under this government, we are open for business, delivering more investment, more jobs, and putting more money in people’s pockets across Britain.”
Meanwhile, global markets are bracing for a return of US tariffs when a temporary suspension expires this Wednesday. Treasury Secretary Scott Bessent confirmed on Sunday that new tariffs would take effect from August 1 unless further trade deals are concluded in time.
“We’re going to be very busy over the next 72 hours,” Bessent told the media. “If you don’t move things along, then on Aug 1, you will boomerang back to your April 2 tariff level.”
Despite global uncertainty, the British country’s latest trade breakthrough has positioned it as a prime destination for investors to navigate a rapidly changing global economic landscape.
