Olympics: Cameron Launches Investment Drive

The biggest ever drive to attract investment in Britain has been launched by David Cameron as bosses flock to London for the Olympic Games.

A day after shock figures confirmed Britain is in the longest double-dip recession for 50 years, the Prime Minister used the Olympics to show "Britain is back open for business".

Lancaster House in central London has been made into the British Business Embassy for the Games and ministers claim £1bn in extra investment could be generated in the coming weeks.

Guests at the Global Investment Conference include the International Monetary Fund's managing director Christine Lagarde and Google's executive chairman Eric Schmidt.

In total, more than 4,000 of the world's top business leaders will attend a series of summits.

Mr Cameron said: "At a time when it is global business partnerships, new investments and start-up ventures that will help get the world back to growth, nothing symbolises the opportunity of partnership and collaboration more than the Olympics.

"So yes, I want medals for Britain, and there will be no more passionate supporter of Team GB than me. But I've got a job to do this summer, and a big part of that job is to get behind British business, and do everything I can to help secure the trade and investment that will help get the world back to sustained, global growth."

The Department of Trade and Industry is predicting the Olympics will generate £13bn of inward investment for UK plc in the next few years, outstripping the £9bn cost of staging the event.

Business Secretary Vince Cable told Sky News that making a profit from the Games was "realistic".

"We do believe we can turn the Olympics into not just a great sporting spectacle, which it will be, but also into a great opportunity for the UK from a business and economic point of view," he said.

"There's what we call a business embassy base, where British businesses will be able to meet on a continuing basis with very large numbers of high level people coming through London.

"There will be a global conference today with some top level people coming to speak and interact with us, and a constant process of conferencing, discussions and negotiations, an estimate of around £13bn has been produced as a plausible figure for the kind of business that could be generated."

The conference starts a day on from the announcement that the UK's economic output shrank by 0.7% in the second quarter of this year.

However, some businesses do not share the Government's optimism over the event. Dominic Geraldi, general manager of Pimlico Plumbers, said the Olympics are not good for business.

He said: "Obviously it's going to benefit some industries such as hospitality, transport, tourism and retail.

"But for the majority of businesses, particularly in London, it will have a negative and disruptive effect. It's taking my staff much longer to get to jobs."

Forman's, a Hackney-based smoked salmon manufacturer, has started a hospitality business on the doorstep of the Olympic Stadium, but owner Lance Forman says business has been discouraged in the area.

He told Sky News: "A lot of businesses don't get it. We have tried to get them to come here and a lot haven't worked it out.

"I think they've had problems with Locog. The message has come out loud and clear to businesses - 'you can't do this, you can't do that; you're infringing the brand here' and it's very negative.

"This is the biggest marketing opportunity for UK plc and for London that we are going to have for 50 years.

"If we don't seize that now, every CEO on the planet is going to be here, if we miss that opportunity that will be the biggest waste of £12bn."

On top of an estimated £1bn in extra sales, it is hoped UK-based companies will also win up to £4bn in longer-term contracts and a further £6bn in direct foreign investment.

Added to the £2.3bn boost expected from tourism, this makes £13bn.

Some four million extra people are expected to visit the UK from 2011 to 2015, in part due to the Olympics but also an accompanying advertising campaign fronted by stars such as Dame Judi Dench and Slumdog Millionaire's Dev Patel.

In an early boost, it has already been announced that the £8bn redevelopment of Battersea Power Station is due to start next summer and create 33,000 jobs.

The development could include homes, offices, shops and a new transport hub attached to the Northern line on the Tube network.

It has taken decades to redevelop the power station - but it is hoped the Olympics can work its magic on the British economy with greater haste.