Barclays CEO Flags £2.5 Trillion Investment Shortfall as UK Share Drops to 7%
BCS•Barclays CEO CS Venkatakrishnan warned UK’s share of global foreign capital fell from 8.6% to 7%, costing an estimated £2.5 trillion over the past decade. He called for clearer policy, regulatory certainty and a stronger global narrative to restore Britain’s attraction and reverse declining reinvestment.
1. CEO Warns on Investment Decline
CS Venkatakrishnan emphasized that intensifying global competition has eroded Britain’s appeal as an investment hub and urged action to counter the trend.
2. UK Capital Share Drops by 1.6 Percentage Points
Barclays’ study shows the UK’s slice of foreign capital slumped from 8.6% a decade ago to 7%, leaving Britain with £12 trillion instead of a potential £14.5 trillion in foreign investment.
3. Demand for Policy and Narrative Reboot
The CEO urged government to deliver clearer policy frameworks, enhanced regulatory certainty and a more compelling global narrative to boost investor confidence and attract reinvestment.
4. Shifts in Investment Sources and Rates
The analysis found weaker flows from major European economies, while 60% of other markets increased UK allocations since 2015; reinvestment rates fell amid political and economic uncertainty, prompting calls to target emerging markets.
