The Labour government is celebrating a “record-breaking” £63 billion in investment deals secured at its international summit held in London this week. Business leaders from around the world gathered at the historic Guildhall for the event, where they were feted with a reception hosted by King Charles, gourmet cuisine from a Michelin-starred chef, and a special performance by music icon Elton John.
But All That Glitters Is Not Gold
Amidst the glowing rhetoric from government ministers about the summit’s success, a closer analysis by The Guardian suggests that nearly £16.5 billion of the touted £63 billion in deals were actually secured or initiated before Labour came to power in July’s general election. This revelation casts the summit’s achievements in a different light.
Repackaging Pre-Election Deals?
One of the most high-profile investments announced at the summit was asset management firm Blackstone’s £10 billion commitment to build a datacentre in Northumberland. But according to the local council leader, this deal had first been publicized back in April, months before the election, by the then-Conservative council.
Similarly, plans for datacentre investments from US firms CyrusOne and CloudHQ, valued at £2.5 billion and £1.9 billion respectively, appear to have been in development since 2022 or earlier. And Turkish conglomerate Eren Holdings’ £1 billion redevelopment project in Wales was approved by local authorities last year.
“It came as a surprise that the government had not credited the council,”
-Glen Sanderson, the leader of Northumberland county council, on the pre-election Blackstone deal being touted as a summit success
Accelerated Announcements or Creative Accounting?
Government sources maintain that while some details of these major investment projects may have been made public previously, the final investment commitments were accelerated and secured under the current Labour government. Ministers have robustly defended the summit’s £63 billion figure, with Industry Minister Sarah Jones declaring in Parliament that “£63 billion doesn’t lie.”
Jones also highlighted that Labour’s summit, organized in just a matter of weeks, secured double the investment that the Conservatives’ summit did last year. The government stands by its position that each deal announced represents new, firm commitments made by companies as a direct result of Labour’s policies and approach.
Contradictions and Controversies
Not all the summit’s announced investments paint a uniformly positive picture though. Haleon, a consumer healthcare company, was lauded for a new £130 million development. But just last May, Haleon revealed plans to shutter a UK factory and cut 435 jobs, shifting that production to Slovakia instead.
As the dust settles on the summit’s headline-grabbing investment total, increased scrutiny is likely to be applied to the details behind these big numbers. The true test will be how many of these ambitious projects come to full fruition in the months and years ahead, and whether they deliver the promised jobs and economic benefits to communities across Britain.
The Road Ahead for Britain’s Economy
For a Labour government still in its early days, the summit represents an important milestone in establishing economic credibility and pro-business credentials. As Chancellor Rachel Reeves proclaimed after the event, her “optimism for Britain burns brighter than ever.” But observers will be keen to see how that optimistic rhetoric translates into concrete results.
In the often murky world where business, politics and billion-pound deals intersect, separating substance from spin can prove challenging. While the government hails a new record for investment, critics are raising pointed questions about how novel some of these commitments truly are. Only time will tell if Labour’s economic strategy pays off for the UK’s post-Brexit, post-pandemic recovery.
As one source close to the matter put it: “It’s not just about who signs on the dotted line or when. It’s about seeing those investments become reality, transforming industries, regions and livelihoods in the process. That’s the real measure of success here, headline figures aside.”
