CBI – business climate worsens under Labour
The CBI will tell the Government today that big business is considering overseas expansion due to higher costs and masses of red tape.
Employers’ body the Confederation of British Industry (CBI) will warn the Government today that its hand-in-glove bond with business is being undermined by excessive bureaucracy and rising costs.
A survey of 250 company executives for the CBI found that 70 per cent of businesses believe Britain has become a worse place in which to invest over the last five years.
The research, to be unveiled at the CBI’s annual conference in Birmingham, found that more than half of UK firms are contemplating outsourcing overseas due to high costs at home.
Overall, 75 per cent of firms perceive the Labour Government as less business-friendly than it was five years ago. Most forecast tougher times ahead.
Digby Jones, CBI director-general, said: “I am pleased with the better performance of the UK economy this autumn, and it is true that so much of our concern originates from Europe and a backward-looking Brussels.
“But when top company decision-makers start giving the kind of signals contained in our survey the government must sit up, listen and take action. There is widespread concern about the UK’s declining competitiveness, and this is starting to feed through to investment decisions.”
