Britain warned over investment problems

A survey of 120 business leaders by the CBI showed that the UK was now performing "relatively poorly" in areas critical to firms deciding whether to invest in this country.

The UK's position had slipped in recent years despite facing increased competition for business investment, according to the report, which called for improvements to planning and infrastructure, business and personal taxation and regulation.

Investors will be more likely to reduce their presence in the UK as the main location for their business if action was not taken, said the report.

Most of those surveyed, ahead of the CBI's national conference in London today, said they believed the coalition Government will improve the climate for businesses.

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

"The UK is still perceived to be an attractive place to invest compared to many other countries, but is seen to have lost ground in recent years, and is lagging behind the US, China and India.

"The UK needs to improve in the areas that really matter, otherwise other nations will steal a march on the UK as a place to invest.

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