DAVOS, Switzerland, Jan 24 (Reuters) - British Industry and Energy Minister Sarah Jones reported positive meetings in Davos this week with CEOs considering their next investment destination as the government promoted growth initiatives in the Swiss Alps.
"People are enthusiastic about the government's message...what they want to see is tangible evidence of our commitment," Jones told Reuters at the World Economic Forum annual meeting.
Recent official data revealed Britain's economic stagnation in the last quarter of 2024, adding pressure to the government which faced elevated borrowing costs due to wider bond market fluctuations.
"Businesses are particularly keen on monitoring interest rates and tax developments," Jones noted on Thursday. "Clarity on regulations, knowing the playing field, understanding key contacts, and navigating investments in the UK are vital."
Although the government's prominent Davos agenda to garner support for its economic strategies provided some reassurance to investors and financiers, some indicated a need for tangible growth results rather than just discussions.
Anonymous senior bankers and executives expressed concerns within the business sector, suggesting that enhancing conditions for entrepreneurs could boost investment attractiveness in Britain.
A Davos attendee hailed a recent tax rule change for wealthy overseas residents as "a small step in the right direction." Concerns over Britain's escalating debt levels escalated amid increased borrowing costs earlier this year, eventually easing.
Recent official data highlighted a larger-than-anticipated trade deficit in December, attributed to debt interest expenses and a one-time purchase of military property.
"To sustain debt, economic growth is essential," stated Finance Minister Reeves to Reuters on Thursday. "Removing barriers to business investment and growth in Britain is our priority," she affirmed, expressing confidence in increasing growth figures.
Businesses fear potential additional spending cuts by Reeves to uphold fiscal promises, intensifying economic strains, according to one executive.