CBI warning on overseas investment
SWIFT action is needed from the Government to secure the UK as a destination for investment, according to CBI director-general Richard Lambert.
Regulation, business taxation, personal taxation, and planning and infrastructure were identified as key areas needing attention in an IPSOS Mori survey of FTSE 100 and 250 business leaders as well as those heading companies overseas headquartered in the UK.
The survey, on behalf of the CBI and Deloitte, found design, marketing and brand development and services provision were the sectors most likely to see business moving abroad if the UK loses ground on other investment locations.
Speaking ahead of the CBI annual conference today, Mr 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 as 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.”
The majority of respondents to the survey backed the new Government to improve the climate for business.
The UK was ranked ahead of continental Europe and Russia as a place to invest and on a part with Braxil but was judged less attractive than North America and China.
John Connolly, chief executive and senior partner at Deloitte, said: “If the UK economy is to continue its recovery, then growth and jobs will have to come from the private sector.
“The Government has to focus its efforts on helping business deliver the maximum power to drive the recovery forward. The leaders of major UK companies have no expectation of a return to ‘business as usual’ and Government too is getting to grips with this new reality.
“One of the great challenges for policy makers is to provide the right conditions for companies to grow. Our research shows where they need to start.
“The UK corporate sector has a tremendous ability to adapt and to bounce back. While businesses remain focussed on controlling costs, strategies to introduce new products or services, expand by acquisition and increase capital spending, feature prominently on their agendas. Even in these uncertain times corporate UK is looking for growth opportunities.”
