Labour advised to chop pink tape as Business snubs UK: Germany and India set to overhaul UK for funding

Labour was last night urged to stop hiking taxes and cut red tape as a global poll revealed Germany and India are threatening to overtake Britain as an investment destination.

Marco Amitrano, UK boss of big four accountancy giant PwC, said the survey of global chief executives – showing the two countries catching up with the UK – should act as a ‘wake-up call’.

The PwC poll of more than 4,000 global chief executives also revealed the share of UK bosses expecting the economy to shrink this year has nearly doubled from 13 per cent last year to 25 per cent.

Just 38 per cent expected growth, too, down from 61 per cent. Amitrano said that was partly explained by the survey being conducted amid uncertainty ahead of Rachel Reeves’ Budget.

To help restore sentiment, he said the Government must stick to its plans to balance the books amid doubts from some chief executives the party would be able to control spending.

Asked what the Government must do, he told the Daily Mail: ‘No more taxes, genuine further moves in deregulation and infrastructure investment – planning reforms in particular.’

Concerns: PWC boss Marco Amitrano (pictured) said the survey of global chief execs – showing the two countries catching up with the UK – should act as a ‘wake-up call’

The Chancellor will today tell business leaders at the World Economic Forum in Davos – where PwC’s poll was unveiled – that Britain is ‘the best place in the world to invest’ as she battles to turn the economy around.

But her words may ring hollow after she piled on £66billion in taxes across her first two budgets.

Reeves will arrive today in Davos for a series of engagements at the annual gathering of global business and political leaders. 

While she managed to restore Britain’s financial ‘headroom’ in her last Budget, there has been some scepticism about the plan – which involves more spending today and cuts in a few years’ time.

Amitrano said: ‘We have to now keep that spend under control. It can’t creep up – otherwise it’s more taxes. So the balancing of the public books is really quite important.’

He added: ‘Being the world’s second-most important investment destination for a second year running should not be underestimated.

‘But in now sharing that position it’s also a wake-up call.’