'Stumbling blocks' cost UK billions every year

The UK risks losing out on billions of pounds of inward investment unless "stumbling blocks" such as regulation and planning issues are tackled, the CBI warned today.

The business organisation said research it had carried out among 400 major firms revealed that a more compelling case needed to be made to attract foreign corporations back after investment slumped during the recession.

CBI director general John Cridland said: "It is worrying how many business leaders are telling us that the UK no longer holds the same attraction it once did."

He urged the UK government to continue reducing corporation tax, extend apprenticeships, develop a fast-track planning system and improve infrastructure.

"The last Budget and 'Plan for Growth' were a good start but the government now has to completely transform the investment landscape. With competition for international capital so fierce, the government must play up our strengths and remove the stumbling blocks to investment," Cridland added.

The CBI said foreign investment in the UK fell from $186.4 billion (114bn) in 2007 to $45.7bn in 2009.

Factors where the survey found that the UK scores highly on attractiveness for investors included its science base, cultural aspects, political stability and quality of life.