UK ‘becoming less attractive place to invest’
BRITAIN is becoming a less attractive place to invest and risks falling behind France unless the Government becomes more business-friendly, an influential think tank has said.
The Centre for Policy Studies interviewed more than 100 business leaders and entrepreneurs and found the UK’S international standing was slipping as a result of red tape, rising taxes and ministerial complacency.
“They warned that the Government has yet to put forward the policies, or produce a narrative, that makes an irresistible case for Britain as a place to do business,” the group said. It added: “The report urges the Prime Minister to lead from the front, in the way that Emmanuel Macron does in France, or he did during his time as Mayor of London, in making Britain the natural home for investors and investment.”
One interviewee told the CPS: “Visiting Macron is now the key pit-stop everyone makes on the way to Davos – not going to London.”
Some of the world’s most powerful business leaders are to meet in Davos this week for the annual meeting of the Word Economic Forum. Rishi Sunak, the Chancellor, is not attending, the Treasury confirmed last night, nor are any of the Treasury’s junior ministers.
Business leaders last week accused
Boris Johnson of squandering the postbrexit opportunity to slash red tape and taxes. Sir Martin Sorrell, the advertising mogul, said yesterday: “Post-brexit we had the opportunity to go to what people called Singapore-on-steroids or Singapore-on-thames and we didn’t really seize it.”
The CPS was co-founded by Margaret Thatcher and remains highly influential among Conservative politicians. The CPS said its report was the largest focus group so far of major investors.
The report added: “There is a firm belief – in some quarters bordering on despair – that Britain is becoming a less attractive place to do business and that the Government is not focused enough on the problem.” The CPS warned the planned increase in corporation tax to 25pc from April 2023 as well as National Insurance rise and super-deduction withdrawal will harm the UK’S international tax competitiveness.
A government spokesman said: “The UK is reaping the rewards of our postbrexit freedoms and attracting private investment from around the world thanks to our approach to innovation, competitive tax environment, lack of red tape and our skilled workforce.
“Big businesses like Airbus and Nissan have recognised these benefits, giving a huge vote of confidence to our economy by committing to invest in the UK.”