British Ambassador Sir Thomas Drew: “If You Build in Britain, We Will Back You”

Why It Matters

The budget’s mix of massive capital spending, tax competitiveness and fiscal discipline strengthens the UK’s investment appeal, directly boosting confidence among foreign firms, especially French tech and energy players.

Key Takeaways

• £137 bn infrastructure investment targets nuclear, AI, transport projects.
• UK corporate tax now lowest in G7, attracting foreign capital.
• French firms pledged €1.14 bn UK investment at 2025 summit.
• Budget cuts borrowing faster than any G7, targeting surplus.
• Stamp‑duty holiday and expanded VC schemes boost listed company capital.

Pulse Analysis

The new UK budget signals a decisive shift toward long‑term, high‑impact investment. By earmarking more than £137 bn for infrastructure—ranging from small modular reactors to AI Growth Zones—the government is creating a pipeline of projects that will generate jobs, enhance productivity, and attract multinational corporations seeking stable, forward‑looking markets. This level of public spending, the highest in four decades, also dovetails with recent French commitments, where firms like EDF and Atos have pledged over €1 bn, reinforcing the UK’s role as a gateway to European growth.

Fiscal discipline underpins the growth agenda. The Chancellor’s pledge to reduce borrowing faster than any other G7 nation, coupled with a projected budget surplus, reassures investors about the UK’s macro‑economic stability. A modest 0.4 % inflation cut and an upgraded OBR growth forecast further solidify confidence, while the nation retains the lowest corporate‑tax rate among its peers and generous capital‑allowance schemes. These tax incentives, alongside doubled limits for Venture Capital Trusts and Enterprise Investment Schemes, lower the cost of capital for innovative firms and make equity financing more accessible.

Beyond macro policy, the budget introduces practical measures that directly benefit businesses. A three‑year stamp‑duty holiday, expanded procurement access, and incentives for savers to invest in equities broaden the capital pool for listed companies. Simultaneously, the UK’s world‑class financial centre offers deep markets and regulatory certainty, attracting French tech startups such as AQEMIA and Mistral AI. Together, these reforms create a virtuous cycle: stable finances attract investment, which fuels growth, reinforcing the UK’s position as Europe’s premier destination for expansion and innovation.