UK Not Attractive Investment Destination: Survey
The rising taxes and difficult regulations in Britain have had a negative effect on its ability to attract investments.
The finding has been revealed by Ipsos Mori when it conducted a survey on UK competitiveness.
UK’s attractiveness as an investment option has been plunging since the last 10 years.
The research conducted by the consultancy firm has found that 84% of the FTSE 250 bosses who were surveyed said that the personal taxation level had made UK a less attractive investment destination for them.
The Daily Telegraph reported that most of the respondents said that high taxes were the reason for the “significant decline in Britain’s competitiveness”.
Other factors which respondents cited as reasons for this are the ‘nature and level’ of regulation and business taxes.
Richard Lambert, who is Director General of the CBI, said that the country as a whole had lost its ground in the emerging business arena. He also said the powerhouses such as India and China as well as the USA has won as the places to invest in.
A significant number of respondent to the survey said that they could very well envisage them moving out of the country with their businesses in the next 5 years. Even in areas where UK has been known to be traditionally strong, such as design and service provision, the top bosses responded with the same opinion.
The survey, which asked respondents about the 16 areas which could impact a company’s decision to locate in the UK, respondents said that only 5 of them have improved. These factors include access to markets, good labor relations and the flexibility of working practices.
Lambert said in a statement that the government must now act fast to ensure that UK becomes more attractive for investments.