The UK has fallen down the world league of countries attractive to foreign investors with inward investment into the UK declining by 60 per cent, according to a study by consultants AT Kearney.
The UK has been overtaken by countries such as Mexico, Poland and India that are attracting investment because of their cheap, well-educated labour forces and pro-business governments.
France, Italy, Canada and Australia have also dropped out of the top 10.
China has widened its lead over the US and other investment destinations worldwide as the most preferred location for foreign direct investment.