UK retains investment appeal but CEO confidence falters
The UK has strengthened its position as a global investment hub over the last twelve months, as it works to offset competition from other countries.
Britain remained the second-most attractive destination for international investment for chief executives last year, according to the latest survey from PwC, but now shares the position with Germany and India.
All three respective countries were cited as locations likely to receive the greatest share of investment this year at 13 per cent each, marking a one per cent drop for the UK and a one per cent rise for Germany.
India had the greatest rise, jumping from seven per cent, while the US kept a firm grip on the top spot, with 35 per cent of chief executives citing it as the most attractive destination.
Globally, only thirty per cent of CEOs say they are confident about revenue growth over the next 12 months, down from 38 per cent in 2025 and 56 per cent in 2022.
Rising economic uncertainty
The UK’s ranking retention comes despite a sharp rise in economic uncertainty, with a quarter of UK chief executives anticipating the domestic economy to slide over the next twelve months, compared to just 13 per cent in 2025.
But, the increase in competition has also led the UK to strengthen its global standing through trade agreements.
This includes the landmark UK-India Free Trade Agreement which was signed in July and aimed to boost trade through cutting tariffs on goods such as whisky and cars, and the UK-US economic partnership, which placed tariff relief on UK steel. That arrangement is now in question following Trump’s latest tariff salvo.
Marco Amitrano, senior partner of Pwc UK, said: Being the world’s second-most important investment destination for a second-year running should not be underestimated.
“It demonstrates that the UK still looks stable in a turbulent world. But in now sharing that position it’s also a wake-up call- other countries are gaining ground.
As a leading nation, this now points to the need to step up our game, with government and business working together.”
Amitrano added that action needs to be taken to “support growth sectors”, with falling inflation able to “help lay the groundwork for this”.
AI investment outpaces impact
UK businesses are also opting to increase their technology, AI and data investment, with over 80 per cent citing it as a top priority, up from 60 per cent last year.
Despite the commitment to increasing investment, returns remain limited, with just 21 per cent reporting revenue growth from AI in the last 12 months.
Other countries have reported greater revenue gains, with 29 per cent doing so, but admitted incurring higher costs from AI than the UK.
This could reflect the the large amounts of capital global bosses are ploughing into growing their tech capabilities, with 40 per cent deeming AI investment needed to meet their goals.
Low revenue growth confidence
Meanwhile, confidence in revenue growth has hit a five year low, with only 38 per cent expressing high confidence.
But bosses were more confident in long term growth, with 51 per cent predicting their revenue to jump in the next three years.
UK bosses blamed their lack of confidence in short term growth to “bureaucracy and cumbersome structures” which slow innovation and business performance.
This comes as only two fifths anticipate M&A activity in the next 12 months.
Amitrano added: “The speed of tech change is exposing excessive bureaucracy and overly rigid structures, things that can hamper transformation at pace.
Those sources of friction are reasons preventing businesses getting important early returns on their investment in AI, slowing down its effectiveness.”