UK races to finalise investment summit

Unlock the Editor’s Digest for free

Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.

Elon Musk hit out at the UK after he was not invited to the country’s international investment summit next month — but the ire of the world’s richest man is not the only hurdle organisers must contend with. 

With less than three weeks to go until the October 14 event, officials have been finalising a list of blue-chip sponsors, while chief executives say that scant details about the conference make it hard to commit to attending. 

A selection of Britain’s biggest businesses have been asked to pay up to £250,000 to back Sir Keir Starmer’s pitch to global executives to pump more capital into the UK, according to people who were approached.

Barclays, HSBC and Lloyds Banking Group sponsored last year’s summit hosted by then-prime minister Rishi Sunak, paying about £250,000 each. Banks and other businesses have again been approached to cover costs that would otherwise be borne by the taxpayer. 

Yet some potential backers have been frustrated by the lack of a detailed agenda, and a shortage of information about what they would receive in return for their investment, people familiar with the matter told the Financial Times. 

“We still don’t know what we would get for the money,” said a senior executive of one company approached to sponsor the event. “How can you commit without even a basic level of detail?” 

Asked whether he would be interested in spending £250,000 for sponsorship, one Labour donor who runs a business said: “It doesn’t sound like much of an investment to me.”

But other prospective sponsors are more positive.

Some companies expect to pay £175,000, with one person familiar with the matter suggesting the price could be lower this year as the package does not include speaking slots. However, organisers expect to easily raise enough money because of the number of sponsors attracted, said some of the people involved in discussions about the summit.

Businesses do not have full details of whether other companies are being offered different sponsorship packages or rates, another said.

Concerns about the international summit also include the timing: because Labour pledged to hold the summit within 100 days of taking office, it must happen before the Budget on October 30. This means chief executives will be having discussions without knowing the UK’s tax plans.

With the summit fast approaching, bosses remain uncertain about the government’s ability to showcase the UK as an investment destination just three months after taking office.

Hesitation extends to business leaders who have been invited, even if they have not been asked to sponsor. “How can I advise our CEO to fly to London for a day when we don’t really know what access they will have or what exactly the event entails?” asked one senior corporate figure. 

Officials hope to finalise the guest list in the coming days. Goldman Sachs boss David Solomon is among the executives attending, although Blackstone’s Stephen Schwarzman and JPMorgan’s Jamie Dimon have prior commitments and will send senior colleagues instead. Both men have met top Labour government figures since July’s election.

Musk, who had a leading role in the last government’s AI summit, took to social media site X after not being invited to the event.  

“I don’t think anyone should go to the UK when they’re releasing convicted paedophiles in order to imprison people for social media posts,” wrote Musk — a reference to the UK’s policy of releasing some prisoners early because of capacity issues, while also convicting people who spread online hate during the summer’s riots. The government has said those serving sentences for sex offences would not be among those released.

Organisers are confident of putting on a high quality event but accept that communication with companies could have been better, said one person familiar with the planning. 

Others noted that there was similar gloominess before last year’s event at Hampton Court Palace, which was ultimately regarded by Tory ministers as a success, despite some grumbles about cold temperatures at the venue.

This year will see representatives from large companies and sovereign wealth funds, and a focus on attracting a wide pool of high calibre investors, including more San Francisco venture capitalists and Indian investors, said the person familiar with the planning.

Most cabinet ministers will attend, the person added, while metro mayors will also participate to underline the government’s message about regional growth. 

Extra information was sent to invitees this week, with the day set to include plenary sessions with Starmer and chancellor Rachel Reeves. Ministers will then lead breakout discussions on topics such as artificial intelligence, technology, the green transition and how business can be involved in healthcare reform, the person said. The programme’s focus will be on key sectors and on blockers of investment rather than on tax.

A government spokesperson said: “The international investment summit will make clear the UK is open for business, and we are on track to deliver an ambitious programme with hundreds of attendees set to attend representing the best of business across the globe.” 

Additional reporting by Akila Quinio