CBI raises India jobs alarm

THOUSANDS more jobs could be outsourced to India unless the government stops burdening British firms with higher tax and red tape costs, employers' organisation the CBI warned.

Abbey, formerly known as Abbey National, has joined the ranks of those shipping jobs abroad. It was on Monday slammed by trades unions for planning a pilot project in Bangalore.

The jobs alarm was sounded as the CBI delivered an otherwise upbeat report on the financial services industry.

Its survey, carried out with accountant PricewaterhouseCoopers, showed that confidence in the sector has grown at its highest level for four years. A number of firms including HSBC and Royal & SunAlliance have recently announced plans to move jobs to cheap labour locations in the Third World.

CBI spokesman Richard Dodd said: 'India has a large source of English-speaking workers, but China is emerging as a country with cheap labour costs suitable for the UK market as well. The government must make every effort to ensure British business remains competitive.'