UK business investment increased by 3% from 2023 to 2024, driven by growth in production (24.6%) and targeted subsectors like textiles (81.2%) and food manufacturing (10.1%). Distribution and construction saw moderate gains. Despite concerns over job security, investment boosts in key sectors may lead to job creation and improved productivity, as highlighted by the Global Payroll Alliance.
New research from the Global Payroll Alliance (GPA) shows a 3% rise in business investment across the United Kingdom between 2023 and 2024. The increase, based on data from the Office for National Statistics (ONS), is largely driven by significant capital injections into key production industries, alongside notable gains in distribution, construction, and selected services.
The production sector records the most substantial growth, with investment rising by 24.6% over the year. All three production subsectors contribute to this upward trend:
- Electricity, Water & Gas production experiences a 31.9% rise
- Agriculture, Forestry & Fishing sees a 20.9% increase
- Mining & Quarrying grows by 11%
This growth in production-related investment signals renewed attention to sectors that form the backbone of the UK’s energy, resource, and environmental infrastructure.
Manufacturing Investment Remains Flat, but Subsector Variations Highlight Targeted Growth
While total investment in the manufacturing sector holds steady at 0.0%, several of its subsectors experience strong increases:
- Textiles, Clothing, Leather & Footwear manufacturing rises by a substantial 81.2%
- Food, Drink & Tobacco manufacturing grows by 10.1%
- Engineering & Vehicles manufacturing increases by 2.2%
These figures suggest that while manufacturing as a whole may appear static, specific areas within it continue to attract targeted investment, especially those linked to consumer goods and essential production lines.
The distribution sector records a 4% increase in investment, while the construction sector shows a 3.1% gain over the year. These industries remain essential to both economic and infrastructure development and continue to receive consistent capital support.
Mixed Results in Services, but Growth in Key Areas
The ‘Other Services’ category reports a slight overall decline in investment of -1.3%. However, several of its subsectors buck the trend:
- Transportation & Storage services rise by 12.3%
- Hotels & Restaurants services increase by 8.6%
- Information & Communication services grow by 2.8%
These results point to a broader pattern of select service industries adapting well to current market demands, particularly those involved in mobility, hospitality, and digital operations.
Employment Outlook and Workforce Sentiment
Despite positive investment activity, UK employees continue to express concern about job security. Melanie Pizzey, CEO and Founder of the Global Payroll Alliance, highlights this growing unease:
“Since the Labour government’s Autumn Statement, concerns about job losses have been rife among UK employees, highlighted by a 77% increase in online searches for ‘redundancy rights’ since October 2024.
However, the increased investment into UK businesses – especially production, distribution, and construction – should result in the creation of many new jobs over the coming years. We just have to hope that the financial boost businesses are seeing results in a concerted effort to boost productivity and therefore employment. There remains a risk of instability in the UK economy due to the government’s seeming inability to settle firmly on a plan for growth, but we remain quietly optimistic that the increase of money moving into businesses will result in an increase of money moving into people’s pockets.”
Data Reference
All business investment figures are based on 2023 and 2024 data from the Office for National Statistics. The full dataset and supporting tables are available through the GPA’s official release.
Himani Verma is a seasoned content writer and SEO expert, with experience in digital media. She has held various senior writing positions at enterprises like CloudTDMS (Synthetic Data Factory), Barrownz Group, and ATZA. Himani has also been Editorial Writer at Hindustan Time, a leading Indian English language news platform. She excels in content creation, proofreading, and editing, ensuring that every piece is polished and impactful. Her expertise in crafting SEO-friendly content for multiple verticals of businesses, including technology, healthcare, finance, sports, innovation, and more.
