The FT link is behind a paywall - both links were looking at 2018.
EY's latest report (28 May 2020) has lots of positives,notwithstanding Covid and the need to attract more FDI to the regions - planned UK government investment in the regions will help going forwards. NB France overtook Germany for FDI in 2018.
"UK achieved a 5% increase in inbound FDI projects compared to 2018, ending three years of declining European market share since the EU Referendum."
"UK surged ahead in digital tech attracting 432 projects (36% increase), representing a 30% share of all European FDI projects, more than France and Germany combined."
"R&D projects increased to a decade high, evidencing the UK’s ongoing economic transformation."
"Investors perceive the UK to be resilient compared to European peers as Brexit fades as an influence on investment decisions."
"Despite losing the lead for total project numbers, 2019 was a strong year for the UK with a 5% increase in projects in a European market that grew by less than 1%."
"The UK performed particularly well in attracting new projects, as opposed to extensions of existing activities.There were 782 new investments in the UK in 2019—up 7.7% from 2018.This was the highest level since 2016 and the second-highest number of new projects secured by the UK in any year over the past decade.The UK has leapfrogged last year’s leader for new projects, Germany (which secured 770 new projects), into top spot."
"The research also shows that investors feel that FDI projects in the UK are well-placed to recover from the impact of COVID-19, and that the UK is likely to outperform the global market in attracting post-pandemic investment."
"The UK surged ahead in digital tech, attracting 432 projects (an increase of 114–36%–on the previous year) and attracting a 30% share of all European projects.The UK grew four times faster than the European average in this sector, securing more projects than France and Germany combined."
“Our report also shows a surge in UK headquartered (HQ) projects by 240% on the previous year" ... "a comparison with the European data suggests the UK performed strongly. Last year, the UK doubled its market share of all HQ projects locating in Europe to 33.6%, up from 16.8% in 2018."^
"The research suggests that the UK should remain relatively resilient in its ability to attract FDI this year, despite the impact of COVID-19. The report indicates that investor intentions towards the UK, compared to other FDI destinations in Europe, remain relatively positive when they look beyond the immediate impact of COVID-19."
"Survey respondents said that 65% of planned projects were still going ahead–including 6% who had actually increased their investment in light of COVID-19–with only 3% saying they had completely cancelled their plans. By contrast, the corresponding figures for Europe revealed a more cautious approach from investors, with 66% planning to decrease investment and 23% pausing it, against 17% and 15% respectively for the UK."
"Before COVID-19 changed the picture completely, 2020 was set to be a record year for UK FDI. At the start of the year, 31% of investors said they were planning to invest in the UK in 2020–a significant increase from 23% in last year’s survey.This was the highest positive sentiment for the UK in over a decade, and higher than the corresponding numbers for other European countries."
"An analysis of changes in the UK’s FDI project origins over the three years since the 2016 EU Referendum shows that the UK has been able to rebalance its investments to compensate for a decline in EU originated projects, further illustrating the transition underway in the UK economy."
"Meanwhile, investors appear less likely to regard Brexit as a risk factor, with just 24% of survey respondents citing it as a risk factor this year, compared to 38% last year."
www.ey.com/en_uk/news/2020/05/uk-misses-out-on-top-spot-for-fdi-in-2019-but-surged-ahead-in-digital-as-economy-transforms-new-ey-report