Yorkshire FDI projects fall 46% to decade low
Foreign direct investment into the region fell sharply in 2025, with the region securing just 28 projects – a 46% yr-on-yr decline, according to figures published in EY’s latest UK Attractiveness Survey.
Yorkshire and the Humber experienced a significantly steeper decline than the UK overall, where FDI projects fell 14% from 853 to 730.
The region’s share of UK inward investment projects dropped from 6.1% in 2024 to 3.8% in 2025, highlighting growing competition for investment and a widening gap between London and many regional economies.
The downturn was also reflected in employment outcomes: FDI-related job creation fell 73% year-on-year, from 4,247 jobs in 2024 to 1,164 in 2025. As a result, Yorkshire and the Humber fell from fourth to ninth place in the UK rankings for FDI-related employment, while its share of UK FDI jobs declined from 11.1% to 4%.
Despite the overall slowdown, the region secured five inward investment projects expected to create more than 100 jobs.
Manufacturing remained Yorkshire and the Humber’s strongest area for attracting foreign investment, accounting for 11 projects during 2025. Business services generated seven projects, while logistics activity accounted for five.
However, investment activity in key sectors weakened significantly: Manufacturing-related FDI projects fell 54% yr-on-yr, while business services projects declined by 46%. Logistics investment remained unchanged.
Looking at individual sectors, Software and IT Services, Business and Professional Services, Machinery and Equipment, Transportation and Logistics, Agri-food, and Construction each attracted three projects, representing the highest project totals by sector.
Leeds remained the region’s leading destination for inward investment, securing nine FDI projects in 2025. However, this was down from 16 projects the previous year.
The city ranked joint seventh among UK cities outside London for FDI activity, compared with fifth place in 2024.
The region also saw a decline in its ability to attract first-time investment. Yorkshire and the Humber secured 16 new FDI projects in 2025, down 20% from 20 projects in 2024. Its share of UK new projects slipped from 3.7% to 3.4%.
The United States remained the region’s largest source of inward investment, accounting for five projects, or 17.9% of the total. However, this represented a significant reduction from 2024, when US investors accounted for more than 40% of all projects secured in the region.
Germany remained the second most important overseas source market, contributing two projects in 2025, up from one the previous year.
EY’s investor sentiment research suggests workforce availability remains the most important factor for businesses considering investment outside London, cited by 30% of respondents. Access to regional grants and incentives, and transport infrastructure were both identified by 27% of investors, followed by the cost and availability of real estate (26%).
Kate Jarman, EY Leeds office managing partner, said: “It was a challenging year for FDI across the region in 2025, particularly given the decline in projects was more pronounced in Yorkshire and the Humber than it was for the UK as a whole, highlighting room for improvement going forward.
“It’s encouraging to see that Leeds continues to be among the country’s top-performing cities for securing FDI projects, while manufacturing activity accounted for a significant proportion of Yorkshire and the Humber’s projects, building on the region’s strong industrial heritage.
“Yorkshire and the Humber also secured five projects announcing 100 or more jobs in 2025, which underscores the region’s continuing ability to attract high-value projects.
“EY’s investor sentiment survey revealed that access to a skilled workforce, the strength of local transport and infrastructure and access to regional grants and incentives are top priorities for global investors when considering locations outside of London.
“This should provide useful insight for both businesses and policymakers in Yorkshire and the Humber, particularly if the region is to close the growing gap with Greater London from an FDI perspective.”
