Barclays Plc is calling on UK policymakers to revamp their approach to attracting international capital, warning that Britain's global investment appeal is waning. Chief Executive CS Venkatakrishnan argued that traditional strengths alone won't preserve the nation's status as a premier investment destination.

The UK's share of global foreign capital dropped to 7% in 2024 from 8.6% a decade earlier, despite hosting £12 trillion ($16.2 trillion) in overseas funds by 2025. Barclays calculated that maintaining 2015 market share levels would have attracted an additional £2.5 trillion in capital. The shortfall reflects missed opportunities in a rapidly evolving competitive landscape.

UK officials remain overly focused on foreign direct investment, which accounts for only 20% of total foreign capital. The remaining 80% consists largely of smaller investments and cross-border deposits that have slipped toward rivals like Singapore and Hong Kong, both pursuing aggressive strategies to capture treasury and cash management business.

Barclays wants the recently relaunched Office for Investment to actively market the UK internationally and develop a coordinated plan to attract corporate treasury centers. The bank also recommends prioritizing renewed relationships with established partners, particularly the European Union, to stem further market share erosion.