A cumbersome planning regime, a severely challenged transport infrastructure, red tape and taxes are just some of the factors contributing to an exodus of businesses overseas. Following a survey of its members the Confederation of British Industry (CBI) has warned that the UK’s competitive advantage may soon be eroded.
Three out of four UK-based companies plan to expand their operations in the next two years, according to the survey. Of these, 35% are considering foreign locations.
Europe is a major draw with 42% of respondents saying they would consider expanding there. More than 30% were considering Asia, with many specifically targeting China and India.
Almost a fifth of companies also reported that they were considering moving their existing business operations overseas. Cost reduction was identified as the main driving factor, followed by access to new markets and the availability of skills.
Robin Worthington of the CBI Property Group said, 'This survey indicates that the UK retains its position as a business location of choice supported by its flexible labour market and economic stability.'
However, the CBI remains concerned that 'a growth in business regulations, a cumbersome planning regime, and significant problems with UK transport and basic skills' will continue to erode the UK's competitive advantage.
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