Chancellor Rachel Reeves is embarking on a significant visit to New York City and Toronto this week, aiming to promote the United Kingdom as a premier investment destination. This trip is part of her broader strategy to strengthen economic ties and attract investment across key sectors such as financial services, clean energy, and infrastructure.
Reeves, who took office on August 5th, will engage with top executives and industry leaders in both cities to underscore the UK’s renewed economic stability and growth potential. Her visit comes ahead of the International Investment Summit, scheduled for October 14th, which will further highlight Britain’s appeal to global investors.
In New York, Reeves will meet with influential figures from Wall Street and host a reception celebrating women in finance. The United States remains the UK’s largest financial services trading partner, with exports of financial services to the US valued at £23.4 billion annually. The financial sector is a crucial pillar of the UK economy, contributing nearly 10% to the nation’s Gross Value Added (GVA) and employing around 1.2 million people. Reeves’ efforts will focus on reinforcing the UK’s position as a global financial hub and attracting more investment into this sector.
Reeves is expected to promote several key areas of growth during her North American tour. In Toronto, she will meet with leaders in clean energy and infrastructure, highlighting the UK government’s ambition to transform Britain into a Clean Energy Superpower. The UK’s clean energy strategy aims to achieve 100% clean power by 2030, a goal supported by recent initiatives such as the creation of Great British Energy. This new entity will work alongside the private sector to accelerate the transition to renewable energy, alongside other measures like removing barriers to onshore wind farms and a record £1.5 billion budget for renewable energy auctions this year.
Reeves’ visit is also intended to showcase recent UK government reforms designed to create a more attractive investment environment. These reforms include the overhaul of a historically cumbersome planning system, the lifting of restrictions on onshore wind projects, and the establishment of a National Wealth Fund. The £7.3 billion fund is aimed at catalysing further private investment in the UK’s green and growth industries.
The UK is already a leading investment hub in Europe, with its markets raising more capital than the next two highest European exchanges combined in 2023. However, Reeves’ mission is to build on this success and enhance economic relationships with North America. The UK remains a significant destination for Canadian investment, with Canadian firms having invested over $73 billion in Foreign Direct Investment (FDI) stock in 2021. The US is the largest source of foreign investment in the UK, and Reeves’ trip aims to solidify these ties further.
In her statement, Chancellor Reeves emphasised the importance of private sector investment for long-term economic growth. “I’ve wasted no time in my first month in office in taking the difficult decisions necessary to fix the foundations of our economy, so we can rebuild Britain and make every part of the country better off,” she said. “That means restoring economic stability so we can attract the investment needed to create good jobs, boost wages, and improve opportunity across Britain.”
Reeves also stressed that a credible growth plan requires private sector involvement. “There is no credible plan for growth without private sector investment. That’s why I’m breaking down barriers at home and banging the drum for Britain abroad as we gear up to host the International Investment Summit.”
The forthcoming International Investment Summit on October 14th will provide a platform for discussing further investment opportunities and reinforcing Britain’s status as a leading investment destination. The summit will bring together global investors and business leaders to explore the UK’s investment landscape and its future prospects.
Jacqueline Starr, Chief Executive Officer of the Rail Delivery Group, and Darren Caplan, Chief Executive of the Railway Industry Association, both highlighted the growing importance of rail travel in the UK. Their comments underscore the broader context of Reeves’ trip, which aims to demonstrate the UK’s commitment to growth and investment across multiple sectors.
Reeves’ visit to North America is poised to play a crucial role in shaping future investment flows and building stronger economic ties between the UK and these key international partners.
