The Confederation of British Industry (CBI) has launched a stinging attack on the government, claiming the business vote was now ‘up for grab’s'.

Opening the CBI’s annual conference in Birmingham yesterday, director general Digby Jones said business taxes and red tape could force many companies into considering a move overseas.

According to the CBI’s own research, almost a third of the companies questioned had relocated some of their business abroad and 43% reported they were under pressure to do so.

In addition, even though 78 per cent of business leaders felt the UK remained an attractive place to invest, 70 per cent believed it had become worse over the past five years with the majority claiming it would deteriorate further in the future.

And a further two-thirds of respondents said they thought Labour did not place a high enough priority on creating a favourable business climate.

The CBI said its “deeply worrying” poll had placed the blame firmly on the Labour government for failing to deliver on promises to create a favourable business environment and improving the standards of public services.

Jones said when businesses started giving the kind of signals contained in the survey, the government should sit up, listen and take action.

“There is widespread concern about the UK’s competitiveness and this is starting to feed through to investment decisions – there is no room for any complacency by anyone, anywhere,” he said.

In response to the survey, Shadow Industry Secretary Stephen O’Brien, said business could now see a clear difference between the two main political parties and under Labour firms would continue to suffer.

“Under a Conservative government, business will be given the low tax and low regulation environment they demand to create the wealth, investment and jobs upon which we all will depend,” he said.

However Trade and Industry Secretary Patricia Hewitt, will today launch her own offensive to prove the business environment under Labour had improved.

She will unveil a new report claiming the DTI’s manufacturing advisory service had provided a total of £28m worth of benefit or an average of £116,000 for each company assisted.