In 2025, the global trading order faces unprecedented challenges. Rising protectionism, growing geopolitical tensions, and uncertainty around future US trade policy have created a more fractured and complex environment for foreign direct investment (FDI).
Against this backdrop, the UK stands at a unique crossroads: no longer bound by EU rules, yet still deeply integrated with the European economy and maintaining strong ties to the US, India, and other global markets. This autonomy gives the UK significant flexibility in shaping its trade policy and defining its role within global supply chains.
Despite the headwinds and challenges being experienced globally, the UK continues to demonstrate remarkable resilience and enduring strengths. Notably, 46 out of 48 cities have improved their scores compared to 2024’s UK Attractiveness Index, with London maintaining its lead and cities such as Edinburgh, Oxford, and Birmingham showing impressive momentum and adaptability.
Recent trade agreements have further reinforced the UK’s position as a preferred destination for international investment. The Economic Prosperity Deal with the United States, the landmark trade agreement with India, and the UK-Germany Treaty – the first bilateral treaty between the two nations since the 1800s – have all helped to secure the UK’s attractiveness for inward investment, particularly by reducing tariffs and deepening supply chain integration. These developments, alongside the Government’s Modern Industrial Strategy and the creation of Industrial Strategy Zones, are laying the foundations for future growth and regional rebalancing.
Read more: https://foleon.irwinmitchell.com/ci-reports/attractiveness-index-autumn-2025/welcome
