Britain has become less appealing for foreign investors, following a year of political chaos.
A survey published today by Make UK, the manufacturing trade body, showed that the proportion of manufacturers regarding the UK as a competitive location had halved, from 63% to 31%.
Make UK said: “Over four in 10 companies (43%) believe the UK is now less attractive to foreign investors, while more than half of companies (53%) believe that political instability is damaging business confidence.”
The survey of 235 senior executives, conducted jointly with PwC, found that two-thirds of business owners will be reducing production, headcount or both, irrespective of the government’s energy support package.
In a separate survey, BDO has found that, despite a marginal improvement last month, economic output and optimism remains well below historic levels.
