It's hard Labour, bosses tell Blair

TOP industrialists yesterday warned Prime Minister Tony Blair that Britain is becoming a less competitive place to do business.

BP chief executive Lord Browne and several chairmen, including Niall FitzGerald of Unilever, Sir John Bond of HSBC and Sir Christopher Hogg of GlaxoSmithKline, were among leading figures to outline their concerns at Number 10 Downing Street.

As part of the discreet Multinational Chairman's Group, they discussed the UK's future as an international business centre. Europe and entry into the single currency - staunchly backed by FitzGerald - were on the agenda.

They also took the opportunity to express their unease at the proposed £1.4bn cap on individual pension pots. They fear it will hit their ability to attract top talent.

Other criticisms include changes in corporate governance, introduced after the Derek Higgs report, hampering the chairmen's freedoms and diluting their powers.

Stealth taxes on business was another bugbear. The chairmen are becoming increasingly fed up with the way business is having to pay for the expansion of the public sector through such changes as the increase in National Insurance premiums.

At the same time, roads are congested, public transport is poor and education is faltering.

The CBI said: 'It is not one single issue that worries business, it is the drip-drip of measures that has weakened Britain's competitiveness over a period.'