• Investment into the UK reached £4.1 trillion last year, a 5% increase, but its share of international capital declined
• Infrastructure, equities, and businesses all recorded large increases in investment
• UK saw falls in investment from sovereign investors and falls in foreign direct investment, most notably in Scotland and North East

The UK economy attracted £200 billion of new investment in 2025, but its share of international capital declined, with sovereign investment and foreign direct investment falling.

Investment in the UK totalled £4.1 trillion last year, demonstrating its continued scale and resilience as the UK economy grapples with macroeconomic headwinds. The figure marked a 5 per cent improvement from the £3.9 trillion of UK investment assets owned in 2024, when the City of London Corporation first began to measure UK investment levels.

 UK public equities recorded the largest increase in new capital, rising by £222 billion (23%) to nearly £1.2 trillion. Business and infrastructure investment^1,2 also recorded large increases, while holdings in UK government bonds remain the largest investment destination, at nearly £1.3 trillion³

 The UK lost ground among international investors. Sovereign wealth funds and global public pension funds increased the amount they invested globally in 2025 to £215bn, from £169bn in 2024. But the UK's share of global sovereign investment fell from 13% to 9% as sovereign investors cut back their UK investment by £3 billion to £19 billion.

Foreign direct investment fell by £14 billion (21%) to reach £54 billion. The drop was driven by 51 fewer projects across the UK, particularly £1 billion-plus mega projects. The largest drops were in in Scotland and the North East. Renewable energy projects were the largest draw of foreign direct investment, rising £2 billion (11%) to £21 billion.

The need for action to keep driving investment is clear, and that is why the City of London Corporation is leading several initiatives to boost investment levels in the UK. InvestConnect⁴, a new AI-enabled platform being developed in partnership with the City Corporation and InvestConnect Global Limited will launch in the Autumn. It will enable investors managing trillions of pounds of assets to back UK infrastructure projects. Cornwall Council, the Scottish Government, and Liverpool City Region Combined Authority are the platform’s first Founding Opportunity Partners and will play a leading role in shaping the development of the platform.

Last year, the City Corporation, together with HMT, the Office for Investment, the Prudential Regulation Authority and the Financial Conduct Authority launched the Office for Investment: Financial Services⁵, providing a “single front door” for international financial services firms looking to set up or expand British operations. The City Corporation also secured commitment from 17 of the UK’s largest workplace pension providers to invest in UK growth assets via the Mansion House Accord⁶. Together, these initiatives have the potential to mobilise £35 billion of investment into the UK.

The City Corporation is also preparing a Budget submission to deliver a more dynamic economy, with eased planning rules, a competitive tax system, and proportionate regulation, to encourage investment.

Policy Chairman for the City of London Corporation, Chris Hayward said:

"Growth in every UK postcode requires investment across our nations and regions. With deep capital markets, a large domestic savings base, and an established and growing ecosystem for international investors, the UK remains one of the world's leading investment destinations. But the overall growth in investment masks a more complex truth which we must tackle head on: the UK is losing ground to international competitors.

“Some of this is cyclical, but we must confront adverse trends early: strengthening the UK’s offer to global investors and ensuring that domestic capital is channelled more effectively into productive UK assets.

“The investment capital is available. So are the growth opportunities. It is the shared task of HM Government, the financial and professional services industry and regulators to connect the two.”  

Notes to editors

1. Business investment rose by £46 billion (16%) to £331 billion.
2. Infrastructure investment also rose by £13 billion (24%) to £68 billion.
3. Holdings fell by £56.5bn, or 4.2%, to £1,285bn in 2025
4. InvestConnect: https://www.investconnect.com/
5. OFI:FS: https://www.gov.uk/government/organisations/office-for-investment-financial-services
6. The Mansion House Accord: https://www.theglobalcity.uk/insights/mansion-house-accord
7. OFI:FS: https://www.gov.uk/government/organisations/office-for-investment-financial-services

About the City of London Corporation:

The City of London Corporation is the governing body of the Square Mile dedicated to a vibrant and thriving City, supporting a diverse and sustainable London within a globally successful UK. www.cityoflondon.gov.uk