The UK has overtaken Germany as Europe’s top investment spot. (Image: Getty)
The UK has overtaken Germany as the most attractive place in Europe to invest, climbing to number two in the global rankings behind the USA, according to PwC.
Despite usurping Germany, Chancellor Rachel Reeves is still under fire for raising taxes by £40bn.
However, the UK’s success may have less to do with the robustness of our domestic economy and more with Germany’s decline and concerns over China.
Since the full-scale Russian invasion of , Germany has been mired in an energy crisis. Investment in China, meanwhile, has stalled over fears about the Trump administration’s imposition of tariffs.
Rachel Reeves at the World Economic Forum. (Image: Getty)
PwC’s global survey, conducted between October and November 2024, shows business leaders are growing in confidence.
61% of top bosses anticipate growth in the next 12 months, up from 39% in 2024. Many felt bullish about the UK’s prospects, especially in areas like artificial intelligence.
However, the Budget has weighed on business confidence. The £25bn increase in employers’ National Insurance contributions has been particularly damaging.
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Olaf Scholz speaking at the World Economic Forum, weeks before the German election. (Image: Getty)
PwC’s Marco Amitrano said bosses had been “rocked” by Reeves’s tax-hiking Budget.
He said: “Business clearly feels a little bit rocked, but personally I don’t believe that the relationship between business and Government is fractured, more a fault line.
“Is there going to be a welcome response to even higher taxes? No.”