Britain's leading business organisation has warned that more firms could quit the country unless the government acts quickly to cut tax and red tape.
The Confederation of British Industry said the tax burden on firms had risen by 59 billion pounds ($109.8 billion) since the Labour government came to power in 1997 and warned Britain could lose out to countries with lower tax rates such as Ireland.
"Current corporate tax levels are unsustainable until companies start generating more revenues outside the UK, or corporation tax must come down," CBI Director General Richard Lambert told reporters.
"There will have to be some changes in the near term. Some companies are relocating. We've seen a trickle and we're anxious that it doesn't turn into a flood," he added. Britain's top rate of corporation tax, at 30 percent, is more than double that of Ireland, but much lower than some of its European neighbours, according to OECD data.
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