WITH the world financial crisis of 2008 negatively impacting most economies, the need to attract businesses becomes even more vital.

Speaking at the Jamaica Stock Exchange’s (JSE’s) National Investor Education Week’s Leadership Discussion Luncheon held at the Jamaica Pegasus Hotel earlier this month, British High Commissioner to Jamaica David Fitton stressed that trade and business had become the lynchpins of the British economy.

He pointed out that, according to the Centre for Business and Economic Research (World Economic League Table 2013), the UK is the sixth largest economy in the world with a GDP of around US $2.44 trillion.

“The World Bank ranked the UK as the easiest major European economy in which to set up and run a business in 2012. The World Bank’s Doing Business 2012 survey ranked the UK the seventh-easiest country in the world to do business. This takes into account such key factors as a regulatory environment conducive to starting a business, the ability to enforce contracts general legal protection for business and a pragmatic and transparent approach to upholding intellectual property rights.

“The UK has a fast, open and transparent system to encourage the formation of new businesses. No permission is required to establish a business presence in the UK and a business can be registered within 24 hours,” declared the British high commissioner.

The Doing Business 2013 survey, which is benchmarked against Organisation for Economic Co-operation and Development (OECD) countries’ averages, shows the UK as a good place to set up and operate a business. It takes on average just 13 days to register and meet compliance regulations before starting a business. The UK ranks as the number one high-income OECD country to get credit, number 10 in protecting investors and 16 in paying taxes.

“With a population of 63.2 million the UK forms a significant market in its own right which should be comforting to any entrepreneur. It is also the gateway to the European market with its 27 member states and over 500 million consumers. Importantly, while remaining an influential member of the EU, the UK retains sovereignty over its currency. This allows businesses in the UK to react flexibly to changing market conditions – a huge advantage for inward investment,” said Fitton.

He went on to add that London excellence in financial and business services makes the UK an ideal location for international activity. London was ranked first in the Z/Yen Group’s Global Financial Centres Index 2013 of international finance centres. It has maintained this position consistently in recent years with New York in second place.

“The UK has a number of key indicators that should stand out. These should encourage entrepreneurs to set up shop in the UK. A 2012 World Economic Forum reported the UK as having the fifth most efficient labour market in the world. The World Economic Forum ranks the UK eighth out of 144 countries in terms of international business competitiveness. Four of the world’s top six universities are in the UK, according to the QS World University Rankings 2012/13.

“The reduction of corporation tax to 20 per cent in 2015 will make this the lowest rate in the G7, and the joint lowest in the G20.

“The UK is doing more now than ever to attract entrepreneurs from around the world. The UK’s investor’s and entrepreneur’s visa enable fast track settlement for high-value investors and entrepreneurs. Major investors will also enjoy more flexibility as they will be allowed to spend up to 180 days a year, rather than 90, outside of the UK before they lose their right to settlement,” said Fitton.

Last week the IMF noted the pace of the UK’s economic recovery is finally beginning to pick up. The UK, it says, is expected to see growth of 1.4 per cent this year rising to 1.9 per cent in 2014. This compares to its last forecast in July of 0.9 per cent growth in 2013 and 1.5 per cent next year.

In its latest World Economic Outlook, the IMF said: ” In the UK, recent data have shown welcome signs of an improved economy, consistent with increasing consumer and business confidence, but output remains well below its pre-crisis peak.

“In an environment of still- low interest rates and under-utilisation of resources, public investment can also be brought forward to offset the drag from planned near-term fiscal tightening, while staying within the medium-term fiscal framework.”

Commenting on the IMF’s forecast, Deputy Prime Minister Nick Clegg said: “This is a powerful statement of confidence in the British economy. The IMF has doubled its forecast for the UK growth this year and further raised its prediction for 2014.

“Crucially since July, the UK forecast has improved above all other G7 countries as our industries forge ahead in global markets.”