Birmingham tops UK for foreign investment growth potential

Birmingham has been named the UK's leading location for growth potential among foreign investors, according to a new index.

The Investment Confidence Index, produced by the law firm Irwin Mitchell and the Centre for Economics and Business Research, gave Birmingham a score of 59.6 for growth potential. That put the city more than six points ahead of London, which came second.

Overall, Birmingham kept its fourth place in the index, behind London, Edinburgh and Greater Manchester.

Why investors are looking at Birmingham

The city has several advantages that investors often point to. It has a young and growing population, five universities, a central location with strong road and rail links, and an airport with direct flights to many European cities.

Large regeneration schemes, including Smithfield, Ladywood and the area around the HS2 station at Curzon Street, are expected to create space for new homes, offices and businesses over the next two decades.

Track record

Birmingham has attracted a number of large employers in recent years, including banks and professional services firms that have moved staff from London. HSBC UK moved its head office to the city in 2018, and Goldman Sachs opened an office in the city centre.

The challenges

The city also faces well known challenges. The council has been under Government intervention since issuing a section 114 notice in 2023, the bin strike has run for more than a year, and parts of Birmingham have high levels of unemployment and deprivation.

Investors also watch transport closely, and uncertainty over the timetable for HS2 has been a frustration for businesses.

What happens next

Business leaders are likely to use the index to promote the city, including when thousands of delegates arrive for the Conservative Party conference at the International Convention Centre next week.