UK study calls for urgent action to ensure business competitiveness

The Confederation of British Industry (CBI) has warned that investment in the UK could be lost overseas unless the coalition government took action to tackle problems related to regulation, business taxation and infrastructure.

According to CBI chief Richard Lambert, the UK was still perceived to be an attractive investment destination.

However, a survey of 120 business leaders by the industry body and accountancy major Deloitte has found that there are increasing concerns about Britain's competitiveness.

"In a number of areas considered to be critical to investment decisions, the UK performs relatively poorly," the survey, presented at the CBI's annual conference in London, said.

Other areas in which the UK scores higher, such as networks surrounding a business, were not seen to be among the most important factors when making big investment decisions by the chief executives and chairmen of FTSE 100 and FTSE 250 companies surveyed.

Lambert added that the UK is seen to have lost ground in recent years, and was lagging behind the US, China and India.