Why foreign investors still fancy Britain

“Britain is not exactly bending over backwards to attract foreign investors,” says The Economist. Deterrents include the prospect of a hard Brexit, the threat of a re-nationalising Labour government and the Government’s own “unwelcoming rhetoric” about foreign money, which it links to asset stripping and tax avoidance. For all that, international buyers “have been splurging”. Under Theresa May, “foreign investors have bought British firms at a faster rate than under any other recent Prime Minister”. How does this tally with the Government’s promise of a crackdown? May’s rhetoric is aimed “at the many Britons who hold takeovers, especially foreign ones, in low regard” – Kraft’s 2010 grab of Cadbury remains a particular bogey. Yet the Government’s actual policy moves have been deliberately “modest”. May recognises the benefits that foreign takeovers can bring: new owners often introduce better management and technology – “both useful when productivity growth is so weak”. With Brexit looming, tough policies to block international capital would be “reckless”. Expect foreigners to continue fancying Britain for a while yet.