No stopping booming Britain: Rush to invest in UK as Brexit economy soars

BRITAIN is enjoying a Brexit boom fuelled by a series of major investment announcements.

And official figures yesterday revealed that the economy is racing forward.

GDP figures for the second quarter to the end of June showed that the economy grew by 0.6 per cent – defying the doom-laden warnings by Remain campaigners that the prospect of a Brexit vote was crashing the country’s finances.

The growth figures came as pharmaceutical giant GlaxoSmithKline announced that they want to invest a further £275million in Britain following the decision to Leave the EU.

In another key sign of confidence in the economy the expansion of City Airport in London has been announced bringing in 1,600 new jobs.

Fast food giant McDonald’s also said it wants to create an extra 5,000 jobs here by the end of next year with its UK chief executive Paul Pomroy saying: “We remain committed to the UK.”

In an added boost to farmers a deal has also been announced for the US to start buying British meat again despite a ban on meat from the EU.

The good economic news saw the FTSE 100 rise by 26.4 points to 6,750.43 while the FTSE 250 — seen as the indicator of the strength of the economy — shot up 196.81 points to 17,257.02

We remain committed to the UK
McDonald's UK chief executive Paul Pomroy
The strong signs for the UK economy have come as a leading expert on US relations with Britain and the EU, Ted Bromund of the Washington DC based Margaret Thatcher Center for Freedom, has hailed Brexit as “great” for the City of London financial markets.

As new Trade Secretary Liam Fox continues his successful tour of the US, Mr Bromund told Fox News: “It [Brexit] leaves the financial sector in a great position. The UK has a world leading financial sector not simply since Margaret Thatcher, it’s had a world leading financial sector for over 300 years.

“I think one effect of the Brexit vote is that it is going to discourage the City from excessive focus on Europe.

“It is going to encourage them to look out, even more than they already do, into the wider world, into Africa, into India, into Asia, and to develop new markets and to diversify away from unhealthy reliance on Europe which is prone to precisely the kind of Euro crises that we have seen over the last few years.”

According to the Office for National Statistics (ONS) GDP grew by 0.6 per cent in its initial estimate for the second quarter of 2016, up from 0.4 per cent in the first quarter.

The upward impact on growth was driven by a strong performance from industrial production, which grew by 2.1 per cent , the highest rise since 1999.

Britain’s dominant services sector grew by 0.5 per cent over the period, underlining confidence in Britain’s financial markets.

The rise in GDP for the second quarter came in above economists’ expectations of 0.5 per cent, with many predicting the economy.

Chancellor Philip Hammond, who had been part of Remain’s Project Fear campaign warning of an economic crisis, was forced to admit the previous Government had been wrong.

He said: “The GDP figures show that the fundamentals of the British economy are strong.

“In the second quarter of this year our economy grew by 0.6 per cent — faster than was expected. Indeed, we saw the strongest quarterly rise in production for nearly 20 years, so it is clear we enter our negotiations to leave the EU from a position of economic strength.”

He went on: “Those negotiations will signal the beginning of a period of adjustment, but I am confident we have the tools to manage the challenges ahead, and, along with the Bank of England, this Government will take whatever action is necessary to support our economy and maintain business and consumer confidence.”

Mr Hammond also announced the £344 million expansion of City Airport which is part of the moves to improve Britain’s international connectivity as it looks to the rest of the world for business and not just Europe.

It is thought that new investment will bring £1.5 billion boost to the British economy by 2025.

Mr Hammond said: “London City Airport’s ambitious growth plans will boost international connections, strengthening the City of London’s links to destinations across the world, and send a clear signal that Britain is open for business.”

GlaxoSmithKline (GSK) has also brushed aside Project Fear claims and announced that it is pumping £275 million into its three UK manufacturing sites, dubbing the UK an “attractive location” since the Brexit vote.

The investment will go to sites at Barnard Castle, Durham, Montrose, Scotland, and Ware in Hertfordshire, and GSK said “new employment opportunities” are expected to be created as a result.

Chief executive Andrew Witty, who backed Remain and warned that investment would be pulled with a Brexit vote, has also performed an about turn.

He said that the UK’s “competitive corporate tax system” and skilled workforce helped the pharmaceutical giant come to its decision.

Mr Witty said: “It is testament to our skilled UK workforce and the country’s leading position in life sciences that we are making these investments in advanced manufacturing here.”

McDonalds boss Mr Pomroy said: “People still want to eat out and treat themselves but post an event like Brexit their demands are heightened. They’re feeling more fragile in terms of their confidence and so we need to keep investing.”

Business and Energy Secretary Greg Clark said: “An investment of this scale is a clear vote of confidence in Britain and underlines our position as a global business leader.

“GSK’s recognition of our skilled workforce, world leading scientific capabilities and competitive tax environment is further proof that there really is no place better in Europe to grow a business.