UK slips in business rankings

Britain is slipping down the league table of the best countries to do business in, a leading international body warned today.

Growth in red tape and the threat of a black hole in public finances were blamed for a slump in our ranking from 11th to 15th. The strong pound was also to blame.

The claims will embarrass Chancellor Gordon Brown, who prides himself on keeping Britain attractive to foreign investors. They came from the World Economic Forum, a respected Swissbased group.

Factors used by judges to draw up the table included the state of each country's economy, taxes and regulations on business. Britain's 15th spot put it behind Germany in 13th place, although still ahead of France in 26th place.

Opposition parties will seize on the findings to press their charge that the Government has added to the burden of red tape on business.

Finland finished on top of the table, due to a "good allround performance".