UK Government Downplays Impact of Riots on Foreign Investment

Business and Trade Secretary Jonathan Reynolds has expressed confidence that recent rioting in the UK will not deter foreign investment, as the government aims to stimulate economic growth. Despite the unrest, Chancellor Rachel Reeves is actively engaging with global investors during her three-day trip to the US and Canada, promoting the message that “Britain is open for business.” Reynolds emphasized that major investors prioritize political stability and a reliable tax regime over temporary disturbances. As the government prepares for an International Investment Summit on October 14, Reynolds noted significant interest from investors, suggesting that the ongoing unrest will not have a lasting impact on investment sentiment. He acknowledged the challenges posed by the riots, particularly for small businesses, which have faced considerable difficulties in recovering from the disruptions. The full extent of the economic damage remains uncertain, but the Secretary highlighted the immediate burdens on these businesses. Reynolds is advocating for prompt insurance claims processing and encouraging businesses to explore support options under the Riot Compensation Act, especially for those inadequately insured. He called on the public to rally behind local businesses, emphasizing their vital role in community life. “If you care about these brilliant local businesses that are the heart of your community, please give them your support in the days and weeks ahead,” he urged, reinforcing the need for collective action during this challenging period.