A survey by BDO has shown that overly-complex regulation in the UK is causing international companies to look elsewhere.

Executives from 10 countries were surveyed and the results showed that only 28pc of businesses that expanded into the UK said it made their company more successful. The UK came last of nine countries in the category.

Kim Hayward, international liaison partner at BDO in the UK, said: "We may be kidding ourselves, thinking the UK is an easy place to do business. These findings reveal the opposite, with complex regulation cited as barriers to investment."

This comes as a blow to the coalition government who are hoping that inward investment will carry the country back to health.

Only 5pc of the businesses surveyed said Britain would be one of the countries they would target for international expansion in the next couple of years, compared to 32pc for China and 20pc for India.