The annual review of overseas investors from Ernst and Young found that the UK's dependence from Wall Street investors has led to a drying up of spending, according to the Guardian newspaper.


Britain saw a 7% drop in inward investment in 2011, with the financial services sector seeing a 15% drop. Germany, by contrast, saw inward investment rise by 15% and was twice as successful as the UK in attracting investors from the Bric countries – Brazil, Russia, India and China.
However, the number of jobs created by foreign investors locating in the North-West grew by 70% in 2011, reports the Liverpool Daily Post.
The report shows that 3,715 jobs were created during 2011 by foreign direct investment (FDI) – a 70% increase on the 2010 figure of 2,187.

The North-West ranked third by number of jobs created, out of 12 UK regions, ahead of London.

Scotland, which retains the Scottish Enterprise agency, enjoyed the highest FDI-sourced job creation in the UK with 5,926 followed by the East Midlands with 3,819.

Simon Allport, Ernst & Young’s North West Senior Partner said: “It is encouraging that the number of jobs created by foreign investors was significantly up last year, but we should not let that cloud our long-term view.

“The number of FDI projects attracted to the North West is down 39%. It is crucial that we attract FDI to drive employment and business growth. To make the region more attractive, foreign investors tell us that we need to focus on R&D and innovation, developing education and skills and creating a strong economic environment.”

With Germany now only 2% behind the UK in the number of inward investment projects in 2011, Steve Varley, Ernst and Young UK & Ireland managing partner, said: "The ability to win investment has been a crucial source of pride, job-creation and growth over many years and is now more important than ever. These findings must act as a wake-up call to prevent the UK losing its lead in foreign direct investment."