By Leigh Evans and Ben Philips at Facts4EU.
Brexit Britain continues to soar as business investment growth in the UK rises to highest rate in 25 years.
According to new figures from the Office for National Statistics (ONS), investment in Britain is up by 9.2% in the last year alone.
At the end of last week the ONS released its revised figures for business investment in the UK. These show exceptional growth. Not only is the growth rate higher than a year ago, it is higher than before the Referendum and on a quarterly basis is at its highest level in over 25 years.
Given that the BBC seems reluctant to spread the good news, the Brexit Facts4EU think-tank team felt readers might want to see a summary, written for non-economists.
Business investment in the UK: April to June 2023 revised results:
- UK Business investment increased by 4.1% in Quarter 2 (Apr to June) 2023
- Business investment has grown by 9.2% compared with the same quarter a year ago
- The rate of growth is accelerating
- It is now at its highest level in over 25 years, adjusted for inflation
[Source: Office for National Statistics, 29 Sept 2023]
UK Business investment increased by 4.1% in Quarter 2 (Apr to Jun) 2023, revised up from the provisional estimate of 3.4% growth, with upward revisions from transport, intellectual property products, and information and communication technology, and other machinery and equipment.
These revisions are the result of later survey data. Business investment has grown by 9.2% compared with the same quarter a year ago.
The Rt Hon Sir John Redwood MP commented:
“The UK needs to grow more and produce more at home. Out of the EU we can now make laws and regulations that allow us to grow more food, rebuild our fishing industry, lower taxes and rules which have been closing our energy using industries and making us less competitive. Good that business investment is up.
Bring on the supply side Revolution.”
On an annual basis this is the fastest growth rate since 2005 (in real terms, subtracting inflation):
- 2006 : -4.6%
- 2007 : 8.7%
- 2008 : -3.4%
- 2009 : -16.8%
- 2010 : 4.3%
- 2011 : 6.0%
- 2012 : 7.0%
- 2013 : 3.6%
- 2014 : 5.5%
- 2015 : 9.4%
- 2016 : 6.9%
- 2017 : -0.2%
- 2018 : -1.6%
- 2019 : 2.1%
- 2020 : -10.6%
- 2021 : 2.0%
- 2022 : 9.6%
[Source: Office for National Statistics, 29 Sept 2023]
When it comes to what is known as “gross fixed capital formation” (GFCF) which includes public investment, we have more bad news for Rejoiners.
GFCF in the UK increased by 0.8% in Q2 2023. This is the second-largest of the G7 nations, surpassed only by the United States. This has been ratified by the anti-Brexit Paris-based Organisation for Economic Co-operation and Development (OECD).
This is yet more good news for Brexit Britain, once again defying the projections of economic apocalypse from the Remain-Rejoin lobby.
For business investment to be rising at the highest rate in 18 years is a testament to the confidence the business community has in the United Kingdom.
We have to say it is a great shame that the Government is still not taking advantage of our new-found freedoms. Progress has been pitifully slow and limited in scope. On top of that they have increased corporation tax by 30%, just at a time when it should be decreased to encourage the growth which the Chancellor says he wants.
As Sir John Redwood MP points out:
“There is one way in which I would be delighted if our politicians will align more strongly with the Republic of Ireland, and that is why don’t we have their corporation tax rate? Because by having a corporation tax rate at half the United Kingdom level, they collect four times as much company tax per head than we do.
And yet the Treasury tells me that if you cut tax rates, you collect less revenue.”
For more Brexit facts go to Facts4EU.
