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Foreign Investment in UK

Asked by Sir Alec ShelbrookeConservativeDepartment for Environment, Food and Rural AffairsTabled Answered 20 May 2025UIN 51346

The question

To ask the Secretary of State for Environment, Food and Rural Affairs, what discussions he has had with international investors on the potential impact of extended producer responsibility on the attractiveness of the UK as an investment destination.

Answered by Mary Creagh

As part of the Government’s broader Collection and Packaging Reforms Extended Producer Responsibility for Packaging will provide regulatory certainty necessary to support investment in recycling and reprocessing infrastructure across the UK and support the transition to a circular economy. Defra and senior officials from the Dutch Government have met with representatives of the UK and Dutch finance sectors to set out a path toward closer cooperation in financing a circular economy. Both sets of officials, with support from the Dutch Banking Association, invited attendees to form a Circular Economy Finance Coalition. The Coalition will identify ways to boost investment in the transition to a circular economy, including developing the necessary infrastructure and innovative business models.

Investment is at the heart of the government’s growth mission, increasing the number of good, well-skilled jobs and improving productivity across the country. The UK has a strong track record attracting private investment – a testament to our strong economic foundations, including world-leading innovation, the rule of law, our ambitious transition to clean energy, and a supportive regulatory framework.

The UK remains a globally competitive destination with the lowest top-line corporation tax rate in the G7 at 25%; the joint most generous capital allowances regime for plant and machinery in the OECD; and R&D tax incentives up to 27% for SMEs and the joint highest uncapped rate in the G7 for large companies.

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