The Spanish Chamber of Commerce in the United Kingdom has today presented the sixth edition of the ‘Barometer on the Climate and Outlook for Spanish Investment in the UK’, of which Clece Care Services are a sponsor. The launch event, held at the Residence of the Spanish Ambassador in London, served as a meeting point for Clece Care Services with representatives from both the public and private sectors of both countries.
The Spanish Ambassador to the United Kingdom, José Pascual Marco, opened the presentation of this sixth edition, followed by contributions from the President of the Spanish Chamber of Commerce in the United Kingdom, Eduardo Barrachina, who highlighted that the Barometer event in London is the only annual bilateral economic event between the two countries, providing a platform for both governments and companies to exchange opinions directly about the state of Spanish investments in the United Kingdom.
Additionally, Barrachina took the opportunity to share with the UK Government some concerns from Spanish businesses in the UK market, including the need for the UK to draw closer to the European Union, new deadlines for investments in the railway network, and the confirmation or cancellation of other infrastructure projects. Labour market flexibility remains an issue for many companies, particularly in specialised sectors, and businesses are calling for greater agility in the processes for recruiting specialised talent. Finally, in terms of financial services, Spanish financial institutions would support a review of the current financial architecture to make it more efficient, simpler, and less bureaucratic.
Barrachina concluded by stating that the data and survey results from the Barometer show that Spanish companies remain comfortable in the UK market, though he warned that attention should be paid to how the new British government implements its policies and addresses the challenges it faces.
The event was also attended by the UK Minister of State for Business and Trade, Douglas Alexander, and the Spanish Minister for Trade, Amparo López Senovilla. The session also included three technical roundtable discussions, which addressed topics such as UK regulatory developments in the investment market, challenges and opportunities for Spanish companies, and the perspective of the public sector.
An Essential Analytical Tool
This report, published by the Chamber since 2019, includes the most recent data available on Spanish investment in the United Kingdom, along with the perceptions of Spanish companies investing in the UK, collected through a survey of over 100 companies operating in the country. The Barometer has become a key tool for analysing Spanish investment in the UK, serving as an important document for investors, businesses, media, and analysts. Clece Care Services are proud to support this document.
Key Findings of the Sixth Barometer
According to the sixth edition of the Barometer and the latest official data available, in 2022 the United Kingdom accounted for 14.5% of Spain’s foreign direct investment (FDI) stock, amounting to €79.5 billion. The UK is the second-largest destination for Spanish investment, just behind the United States, which accounts for 14.9%.
Since records began in 1993, the United Kingdom has received more than €169 billion in Spanish direct investment. Despite the slowdown in investment following Brexit, the UK continues to be the primary destination for Spanish investment historically.
In terms of the impact of Spanish investment in the United Kingdom, in 2022 it contributed to the creation and maintenance of nearly 133,000 jobs, with 75,910 of those being direct jobs. This represents 0.4% of all jobs in the UK. This figure is an improvement on the 121,000 jobs associated with Spanish investment in 2021.
Regarding Spanish direct investment flows, official data confirms an increase in the first half of 2024, following the decline in 2023. Comparing the first half of 2023 with the same period in 2024, Spanish investment flows into the UK have increased twelvefold this year. By sector, the main recipients of Spanish investment in the first half of 2024 have been telecommunications, real estate, and air transport.
Spanish Companies’ Outlook
For the second consecutive year, the Spanish companies surveyed maintain a positive view of the business climate in the United Kingdom, with three out of four describing it as at least “acceptable.”
When asked about the UK market, the companies highlighted the ease of digitalisation processes, with sustainability now added as a key focus in 2024. However, the quality of life was rated as the least positive aspect this year.
Regarding expectations for the new Labour government, Spanish companies have identified two key priorities: relations between the UK and the European Union and UK labour market policies. Looking ahead to 2025, business expectations for the next year are positive. More than half of the companies surveyed expect to increase their revenue, investments, and workforce in the UK. These investments, focused primarily on improving productivity (the goal of 40% of firms), will mainly target areas such as marketing, digitalisation, and recruitment. London and its metropolitan area will continue to be the primary focus for these initiatives. Finally, it is worth noting that the vast majority (93%) of Spanish companies established in the United Kingdom consider the country to be a strategic market for their business.
The sixth edition of this report was supported by ABANCA, BBVA, Cellnex, Clece Care, Exolum, Ferrovial, Iberdrola, Indra, López Landa Interiors, Navantia, Banco Sabadell, Banco Santander, and Uría Menéndez.
Finally, alongside Clece Care Services, the project also received the backing of the Spanish and UK Governments through their trade departments, the Spanish Embassy in the UK, the Spanish Chamber of Commerce, the Financial Times, and the collaboration of International Financial Analysts (Afi).
