Open for business

After the misplaced gloom that some disappointed politicians sought to promote after the EU referendum, the £24 billion purchase of ARM Holdings by SoftBank of Japan is a useful corrective. The biggest-ever Asian investment in the UK shows that this remains a dynamic economy very much open for business.

Some will worry about a jewel in Britain’s economic crown coming under foreign ownership: it is natural to wonder whether important British businesses should not remain, where possible, in British hands. Theresa May appealed to that instinct last week, suggesting she would be more willing to impede foreign takeovers of major British firms than her predecessor had been.

In fact, Britain’s openness to foreign ownership of big companies has been a source of great strength and often a boon to consumers who benefit from greater competition between firms. Companies of strategic national interest should obviously be treated differently, but in general Mrs May should resist the mood of closed-door protectionism sweeping so many other countries.

An even more important issue is where the next ARM will come from, since Britain needs to create such world leaders in technology and other growing sectors. Here, Mrs May’s Government must think deeply and daringly about an education system that does everything possible to promote talent and foster ambition: more grammar schools must be on the agenda, and our top universities should be encouraged to build on their impressive record of turning scientific genius into commercial triumph. Free of the EU, all of Britain’s talents must now be unleashed to lead us to even greater prosperity.