Starmer’s summit: opportunity knocks | thearticle

Keir Starmer’s International Investment Summit is more than an attempt to bolster the UK’s economic profile—it’s an acknowledgement of the profound work needed to restore Britain’s place on

the global stage. After years of underinvestment, missed opportunities, and the fallout from Brexit, the UK must now reinvent itself. The strategy must be clear: investing in infrastructure,

harnessing soft power, empowering Small and Medium-sized Enterprises (SMEs), capitalising on the green economy, and repairing its relationship with the EU. For the past decade, politicians

have promised to raise the regions to London’s standards. However, instead of turbo-charging regional hubs like Manchester, Glasgow, and Bristol, the reality has been a policy of holding

London back, stifling its growth in a misguided attempt at geographic socialism. The catastrophic waste of the HS2 project stands as a testament to this government failure, supported by

pork-barrelling in the Blue Wall. London was long viewed as the world’s business capital and remains one of the leading global hubs, handling £2.9 trillion in market capitalisation as of

2022. It hosts more international company headquarters than any other European city and has been a leader in finance, legal services, and innovation. However, since Brexit, London has

slipped behind other financial hubs like New York and Singapore. The Global Financial Centres Index (GFCI) saw New York overtake London in 2023, reflecting a nearly 10% drop in financial

jobs since Brexit. Starmer’s summit offers a chance to restore some of this lost prestige, but the UK is playing catch-up. Nations such as France, with its _ Choose France _ initiative

(started in 2019), and the U.S. with _ SelectUSA _ (since 2011) have been securing global investment while the UK lags behind. At the heart of the UK economy is its entrepreneurial spirit,

driven by SMEs, which contribute 52% of the UK’s GDP—far more than Germany (35%) or France (41%). SMEs drive innovation in sectors such as creative industries, fintech, and legal services,

yet their potential is hampered by poor infrastructure. Without improvements in transport, digital connectivity, and energy grids, these businesses cannot grow or compete globally. The

Government’s failure to adequately invest in infrastructure, instead sinking money into white elephant projects like HS2 or the £1 billion _Towns Fund_, is holding back the UK’s real

economic drivers. The UK’s infrastructure investment collapse, compared to G7 peers, is a major drag on its competitiveness. While Germany invests around €70 billion annually, and France

spends around €50 billion, the UK lags at about €35 billion. To match Germany or France, the UK would need an additional £50 billion annually to upgrade transport, broadband, and energy

infrastructure—key improvements that our European neighbours seem to manage more effectively. Beyond the untapped potential of SMEs, green energy offers a golden opportunity to revolutionise

the economy, much like North Sea oil did in the 1970s and 1980s, contributing up to 10% of GDP. Today, the UK is already the world’s largest producer of offshore wind energy, and with the

right investment, this sector could create 100,000 jobs by 2030. However, this potential will only be realised if infrastructure upgrades—such as a modernised national grid and enhanced

energy storage—are put in place. Green energy could well be the UK’s next great economic boom, but this will only happen if the Labour Government backs its ambitions with real investment.

Alongside the green economy, the UK’s global dominance in soft power is one of its greatest but most underappreciated assets. Institutions like the BBC, which reaches 365 million people

globally each week, and the Premier League, broadcast to 640 million homes, are constant advertisements for British values of fairness, transparency, and creativity. These cultural exports

elevate the UK’s reputation and benefit industries like insurance, marketing, legal services, and fintech, which rely on trust and integrity. The UK has the potential to become the world’s

lawyer, bank, insurer, and entertainer—filled with highly skilled professionals supported by a network of service industries. Soft power is not just about cultural prestige—it brings

tangible economic benefits. The UK’s global image as a leader in integrity and innovation makes it an attractive destination for foreign investment. Starmer must invest in and harness these

assets to improve international perception and generate economic opportunities. Perhaps the toughest but most essential challenge for Starmer is rebuilding the UK’s relationship with the EU.

The EU economy is heavily driven by export-led manufacturing in countries like Germany and France—think Mercedes, BMW, and Estée Lauder. The UK, however, excels in services such as

financial services, legal services, creative industries, and fintech. The EU prioritises the free movement of goods and capital, which benefits Germany and France, but services—where the UK

thrives—have long been underrepresented. Starmer’s task will be to negotiate a free trade agreement focused on services. Such a deal would allow the UK to export its intellectual and

creative capital across Europe, tapping into markets that have historically prioritised goods over services. This would not only benefit the UK but also boost the EU economy, which needs the

services the UK can provide. For instance, London is widely regarded as the global epicentre of wine trading, despite the UK producing comparatively little wine itself. London’s neutrality

and expertise in finance, logistics, and legal services make it the ideal marketplace for wine trading. The city hosts renowned auctions at Sotheby’s and Christie’s, and Liv-ex, the global

wine trading platform, sets industry benchmarks from London. This model of service-driven trade, rooted in neutrality and trust, can be applied across industries —from fine art to insurance—

demonstrating the UK’s unparalleled strength in services. UK-EU trade is estimated by the OBR to be 15% lower than if we had remained a member. The longer the UK delays, the harder it will

be to restore these relationships. The UK’s potential in services is like a coiled spring, ready to explode if barriers are removed. Keir Starmer has a unique opportunity to reshape the UK

economy, but bold action is required. His strategy must focus on five pillars: infrastructure investment, expanding soft power, empowering SMEs, building a green economy, and repairing trade

relations with the EU through a services-focused trade agreement. By focusing on its strengths in financial services, creative industries, and intellectual capital, and ensuring the

necessary infrastructure and trade agreements are in place, the UK can reclaim its position as a global economic leader. Starmer’s summit is an important first step, but the real test will

come with Rachel Reeves’s upcoming budget. If that budget fails to deliver a clear and bold plan, the goodwill from this summit will dissipate. A failure to act decisively will threaten

Starmer’s leadership and risk the UK’s economic future. A MESSAGE FROM THEARTICLE _We are the only publication that’s committed to covering every angle. We have an important contribution to

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