The UK’s finance minister Chancellor Rachel Reeves recently published her budget and there are three things you need to know about how the UK is improving its offer for international business and investment.
Firstly, growth remains the UK Government’s number one mission. Since coming to office, the government has increased capital investment by over €137 billion, in infrastructure, innovation, and green energy, creating the conditions for key industries to thrive. This budget confirmed public investment at its highest sustained level in four decades, meaning investors can have confidence in the UK economy for the long term.
And it sets out the next steps in strengthening the UK’s infrastructure to boost growth and productivity - including the location of the UK’s first small modular nuclear reactors; funding for a new crossing across the River Thames; and new AI Growth Zones spanning across the country.
It builds on previous commitments - such as Heathrow Airport expansion, the Sizewell C nuclear power station, and improvements to transport infrastructure - as well as planning and regulatory reforms to remove barriers to investment and trade agreements with major partners.
The UK-France Summit in July 2025 saw leading French companies announce over €1.14 billion of investment into the UK, alongside significant UK investment into France. This new partnership is the first of its kind in Europe, boosting collaboration in key high-growth sectors including energy, aviation, tech and finance.
At the Summit, EDF took a 12.5% stake in Sizewell C, creating thousands of UK and French jobs and apprenticeships and further enhancing our collective energy security. Assystem doubled its nuclear workforce, creating 1,000 engineering and project management roles. Ardian finalised an additional €1 billion investment in Heathrow, taking their total to €3.26 billion and supporting 80,000 jobs.
Since the Summit, French companies have continued investing across priority sectors. In energy, EDF Power Solutions and Ocean Winds (Engie) secured 1.5 GW sites each in the Celtic Sea leasing round for floating offshore wind. Technip Energies is leading the Net Zero Teesside Power project, the world's first gas-fired power station with carbon capture. In AI, Atos announced a €11.43 million investment in the Midlands, creating two flagship technology centres and 50 jobs. These are long-term plans to build a stronger, more secure economy.
The lowest corporate tax rate in the G7
Second, we will not borrow beyond our means. An unfunded borrowing spree is bad for stability, bad for business, and bad for investment. By cutting borrowing by more than any other G7 country to the end of this decade, the UK’s Chancellor is placing the country on track to have the largest budget surplus in 20 years – strengthening our ability to make the most of growth opportunities now and in the future.
At the same time, the budget directly delivers a 0.4% reduction in inflation in 2026/27 to move the UK into line with global peers through 2026 and closer to the Bank of England target rate of 2%. This will help the Bank to continue to cut interest rates and stimulate investment.
As a result of this budget, the UK’s independent fiscal watchdog, the Office for Budget Responsibility, has upgraded its growth forecast by 0.5% since March. Meanwhile the IMF says it expects UK growth to be the second fastest in the G7 this year, and the fastest among European G7 economies.
This means more opportunities for services, manufacturing, life sciences and industry – more opportunities for investment and returns. Finally, this budget has made the UK an even more attractive place to invest - with a major package of measures to help businesses start up, scale up, and stay in the UK.
We already have the lowest Corporation Tax rate in the G7 and the most generous tax reliefs for plant and machinery in the OECD. The budget confirmed our commitment to both of these. London's world-leading financial centre offers French companies deep capital markets, sophisticated financial instruments, and regulatory stability to raise capital and scale.
And last week we doubled investment limits for our internationally competitive Venture Capital Trust and Enterprise Investment Schemes, helping innovative companies raise equity as they scale. We doubled eligibility for the Enterprise Management Incentive, giving employees of fast-growing companies access to share options with tax relief, so more have a stake in our tech industry’s future.
French startups want to tackle the UK market
And we’re changing procurement rules, so more firms – big and small – can benefit from government contracts. For the first time, UK-listed companies will have a three-year stamp duty holiday, as well as benefitting from incentives for savers to invest in the stock market. These measures will grow the pool of capital available for listed companies and pave the way for the next generation of entrepreneurs and tech unicorns.
French Tech Bio company AQEMIA, which uses generative AI to design novel molecules for oncology drug discovery, opened a London office near King's Cross earlier this year, attracted by the UK's high-skilled talent pool. In banking, HSBC has partnered with France's leading AI company Mistral AI to accelerate generative AI adoption across the bank, building on Mistral's decision to double their UK workforce in 2025. In short, this was a budget for entrepreneurs.
The commitment to stability, investment and reform is already yielding results. Growth has been upgraded, inflation is set to fall, and we will cut borrowing faster than any other G7 country. In an uncertain world, we are securing the public finances, and we are choosing to invest in Britain’s future. And we’re making Britain the best place for business to start, grow, invest and stay. If you're a French business looking to expand, innovate or invest, Britain offers the stability, the talent and the opportunity you need - and we're ready to back you every step of the way.
The Commercial Department of the British Embassy in Paris provides support to French companies wishing to set up in the UK. Click here to find out more
