2010.10.2501:33:00UTC+00U.K. Must Do More To Attract Investment, Says CBI

The U.K. is facing increasing competition as a destination for business investment and must do more to maintain its status as a top business destination, the Confederation of British Industry said on Monday.

The CBI said the U.K. is still seen as an attractive place to invest, but it has lost ground in recent years, and is lagging behind the U.S., China and India.

A CBI and Deloitte survey of senior business leaders in FTSE 100 & 250 companies identified areas such as regulation, business taxation, personal taxation and planning and infrastructure as requiring urgent attention to improve the country's competitiveness.

Business leaders felt that the coalition government had made a positive start towards improving the overall climate for businesses. Around 62% felt the new government will improve the business climate, while 55% said the impact of the coalition will be "fairly positive."

"Having acted fast to tackle the deficit, the government must focus on how to attract more investment to the U.K., if we are to create new jobs and grow the economy," said CBI director general Richard Lambert.

"The coalition's efforts to improve the general business climate are viewed favorably, but there is much to do to improve the U.K.'s competitiveness as a destination for investment. The stakes are high, but if the U.K. raises its game, the prize we reap in jobs and opportunities will be considerable," he added.

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