The UK economy compares favourably with those of other European countries and continues to out perform many of them. As well as the strength of its economy there are a number of other advantages the UK can offer businesses wishing to locate in Europe including:

• Access to European markets through the UK's membership of the European Union. Many countries, especially the US and Japan view the UK as a bridgehead from which to launch their operations into Europe.
  
• The UK has extremely sophisticated capital markets. For example, the UK banking sector originates more cross border bank lending than any other country. The London Stock Exchange is the fourth largest stock exchange in the world and the UK is one of the world's largest fund management centres.
  
• The UK has an excellent reputation for innovation and technological expertise, including excellent research and development facilities.
  
• A business friendly tax system, including low corporate tax rates. The UK has the lowest main corporation tax rate of any of the major industrialised countries. Legislation has been introduced to make companies exempt, in certain circumstances, from corporation tax on capital gains arising from the disposal of a substantial shareholding in another company. This should make the UK a more attractive place for an international holding company.
  
• The UK has a pool of relatively cheap skilled labour. There are flexible labour laws and the immigration laws have recently been overhauled to attract entrepreneurs and help employers bring skilled people into the country.
  
• The UK's integrated transport network provides fast, low cost delivery throughout Europe.
  
• Language. English is the main language of the business speaking world.
  
• The UK has a range of grants and incentives to attract business in certain areas.
  
• A liberalised telecommunications market. The UK has a deregulated telecoms structure.

The UK warmly welcomes inward investment and continues to encourage business from overseas.