It is becoming increasingly evident that the recent riots in London’s lower income neighbourhoods are now creating investor concern within the business sector. Investor confidence is waning as evidence of Britain’s struggling economy is reaching a head.

Investor Perspective on UK Economic Tension

There are reports that the CEO of Jaguar Land Rover, Ralph Speth, is voicing apprehension over the recent riots as he watched news of London unrest scroll across the screen. As one of the largest investors in the UK, Tata (owner of Jaguar Land Rover) is concerned as to how ‘foreign’ investors will view the economic tension being played out in some of the hardest hit neighbourhoods in terms of unemployment. Not only is Tata one of the biggest investors in the UK but the company is also one of the largest manufacturers which is why their concern is of such importance.

Can Government Restore Investor Confidence?

It is further reported that Jaguar Land Rover is concerned about statements made by the government that they would be working closely with the investment community to restore investor confidence in the UK as a sound choice for their investments. Unfortunately, there doesn’t seem to be much which can be done to ease investor fears as Jaguar Land Rover has seen a 4.9% increase in sales in Russia, China and India whilst the UK economy is on a downhill slide.

Easing Investor Fears

If there is to be any hope at all of easing foreign investor fears, government needs to step in to assuage unrest on the home front. With the poor getting poorer and government assistance cuts making it even more difficult on that portion of the population, there is no end in sight to current economic tension. The only thing which will appease a foreign investor may be to see the UK mend their international reputation by getting a handle on current domestic turmoil.