Britain is becoming a less attractive place to do business, the largest ever survey of UK investors of its kind has warned today.
The Centre for Policy Studies think tank asked major investors “Why choose Britain?’”.
In interviews with more than 100 founders, funders, CEOs, entrepreneurs and other senior figures, in the biggest focus group of its kind to date, the CPS said their anonymous responses give an “unparalleled insight into the mood of the investment community.”
The CPS said the overall verdict is that though the UK is still a more attractive place to do business than its European counterparts, it is losing ground.
The CPS said investors are not only worried about the UK’s trajectory, but concerned that the government is not as focused on the problem as it should be.
They welcomed steps such as the creation of the Office for Investment, but said investors felt there is a consensus that the UK is too reliant on its existing advantages.
The think tank’s new report urges Boris Johnson to make Britain “the natural home for investors and investment.”
The CPS concludes the report with a simple 10-point plan to make Britain dramatically more investment-friendly and business-friendly. By doing so, the Government can put the private sector where it belongs – at the heart of the recovery, and of the country’s future prosperity.
1. Publish a plan to make Britain the most investment-friendly country in the world
2. Cancel the corporation tax rise
3. Extend the special tax regimes that bring wealth and talent to Britain
4. Enhance tax breaks that boost investment
5. Reform the regulations that hold back our investment ecosystem
6. Introduce cutting-edge regulatory frameworks to capture new markets
7. Put a new competitiveness unit at the heart of government
8. Renew No. 10’s focus on business and put in place a much better support structure
9. Empower city regions to promote themselves as investment destinations
10. Promote business-finance-university clusters across the UK
Howard Shore, chairman of Shore Capital, said: “In post-Brexit Britain, it is essential that we re-establish our own economic identity and play to our many strengths as a nation to restore the entrepreneurial environment and enthusiasm that existed during the Thatcher government in the 1980s.”
CPS director Robert Colvile, said: “When business speaks, the Government should listen. We know that business is the engine of economic growth. If we are to grow our way out of the current economic malaise, we will need business to do the heavy lifting.
“Making Britain more attractive to investors will also help make Britain a more business-friendly country – which is the only sustainable route to prosperity. We urge the Government to listen to the voices in our report.”
Responding to the new research, a government spokesman argued: “The UK is reaping the rewards of our post-Brexit 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,” they went on.
