Manchester has reaffirmed its status as the leading UK city for Foreign Direct Investment (FDI) outside London, attracting 44 investment projects in 2024 – a 22% year-on-year increase – and reclaiming the top spot it has held in three of the last five years. The city’s performance highlights the North of England’s growing appeal to international investors, at a time when many other UK regions experienced declining investment activity.
According to the EY UK Attractiveness Survey 2025, the North of England was a national bright spot, recording a 29% year-on-year increase in FDI projects in 2024. This growth was largely fuelled by a significant increase in manufacturing-related investment, reflecting the region’s industrial strengths and potential for high-value, long-term economic impact.
The North West emerged as the UK’s third-best performing region for FDI, attracting 86 projects, a 27% increase on 2023 and matching the total for the West Midlands. Yorkshire and the Humber recorded 52 projects, up 53%, while the North East secured 42, up 11%. Collectively, these three northern regions increased their share of total UK FDI from 14% in 2023 to 21% in 2024.
By contrast, many other regions saw declines in FDI, including Greater London (-26%), the West Midlands (-32%), and the East of England (-36%). Despite a dip in national totals, the UK recorded 853 projects in 2024, a 13% drop from the previous year, the North of England bucked the trend, standing out as a key driver of resilience and opportunity in the UK investment landscape.
Manchester Tops UK City Rankings Outside the Capital
Manchester’s 44 FDI projects in 2024 placed it ahead of Glasgow (27 projects), Birmingham (24), and Edinburgh (24). The city has become a magnet for international investors, thanks to its strong talent base, vibrant innovation ecosystem, and established strengths in digital, financial, and professional services.
Peter Arnold, EY UK Chief Economist, said:
“Manchester’s consistent performance in attracting investment highlights the city’s evolution into a globally recognised business hub. Its strength in high-value sectors and manufacturing, as well as connectivity across the North, positions it well to benefit from renewed interest in regional UK opportunities.”
Manufacturing Boom Powers Northern FDI Growth
The North’s surge in FDI was underpinned by a sharp increase in manufacturing investment. The North West more than doubled its total to 25 manufacturing-related projects (up from 11 in 2023), while Yorkshire and the Humber jumped from 9 to 24 projects. The North East also saw a modest rise to 12 projects. Overall, the North of England more than doubled its manufacturing-related FDI activity year-on-year, reinforcing its role in the UK’s industrial strategy.
Investor Confidence in the North Remains Strong
Despite global economic turbulence and the impact of new US tariffs, investor sentiment toward the UK – and particularly the North remains optimistic. While overall intentions to invest in the UK dropped from 62% in March to 52% in May, a substantial 37% of surveyed investors still plan to invest in the North of England over the next 12 months.
Among the most attractive features of regional locations outside London, investors highlighted access to regional grants and incentives (37%), availability of skilled local workforce (30%), and proximity to business partners and suppliers (28%).
Regional Strengths Key to Future Growth
Anna Anthony, EY UK & Ireland Regional Managing Partner, noted:
“The North of England is demonstrating how regions can unlock growth by aligning local strengths with national priorities. While London continues to dominate overall, the rise of Manchester and the broader North shows the UK can deliver a more balanced, high-value investment landscape.”
“To capitalise on this momentum, policymakers must focus on supporting the North’s manufacturing renaissance, boosting energy resilience, and investing in skills and infrastructure that attract long-term, strategic investment.”
Manchester and the North Poised for Continued Growth
The EY survey underscores the importance of regional strategies in shaping the UK’s attractiveness to foreign investors. With increased attention on advanced manufacturing, clean energy, and digital innovation, Manchester and its neighbouring regions are well-placed to lead the next phase of the UK’s FDI success story.
As the UK prepares a new Industrial Strategy, reinforcing support for regional strengths – from Manchester’s digital ecosystem to Yorkshire’s advanced manufacturing capabilities – will be essential for securing sustainable growth across the country.