UK is ‘better for business than the US’

BRITAIN is now a better place to do business than the United States, according to a major study published last night.

In a boost for George Osborne, the World Bank said the UK now ranks above America for only the second time since its ‘Doing Business’ report was first published more than a decade ago.

Britain is now the sixth best country for business out of 189 – up from eighth last year and tenth the year before that. That puts us ahead of the US in seventh, Germany in 15th and France in 27th.

The news was welcomed by ministers who have slashed business taxes and attempted to reduce red tape in a bid to make Britain more enterprise friendly.

But separate figures showed that the economy cooled more than expected over the summer – fuelling fears that our recovery is being hindered by a darkening outlook globally.

Britain was the fastest growing economy in the Group of Seven major industrialised nations in both 2013 and 2014 but the pace of recovery is easing. Gross domestic product – the total size of the economy – increased by just 0.5 per cent in the third

‘Outperforming other economies’

quarter of the year, according to the Office for National Statistics, down from 0.7 per cent in the second quarter as construction and manufacturing output shrank.

Mr Osborne, who will deliver his Autumn Statement next month, said: ‘It’s good news that Britain continues to outperform other western economies. But there are clear global risks and there is still much more to do to fix our economy.’

The World Bank’s report put Singapore as the best economy in the world for business, followed by New Zealand, Denmark, South Korea and Hong Kong – and then Britain. The top ten was completed by the US, Sweden, Norway and Finland. The UK was last ahead of the US in the 2011 report, when it was fourth and America fifth.

Business Secretary Sajid Javid said: ‘This is international recognition of the UK’s strong and stable business environment, competitiveness and entrepreneurial spirit.’