BRITAIN risks an exodus of international businesses as a result of an increasingly complex tax system, infrastructure failings and the high cost of doing business, according to a report to be published this week.

The report, by business consultants Curzon & Company, is based on a detailed survey of more than 250 executives from around the world, carried out by the Economist Intelligence Unit.

The 258 executives interviewed, most representing businesses with turnovers of more than $500m (£255m), said Britain still had strengths, including a pro-competition attitude, a relaxed approach to foreign direct investment, flexible labour markets and sophisticated capital markets.

But in the report, called Cutting it on the World Stage — Trouble Ahead for UK plc?, the executives cited several weaknesses, including “an increasingly burdensome and unpredictable tax regime that has recently been rated as one of the most complex in the developed world”. Other factors that risked driving business away were a failure to make timely improvements to Britain’s “failing” transport system and what the report describes as “the continuing struggle with productivity”, with the UK still far from closing the gap with America and France. Some executives were also worried about high levels of British indebtedness.

“In our work we meet a lot of chairmen and chief executives and there’s a growing strength of feeling on these issues,” said Frank Esson of Curzon & Company. “Business also feels it isn’t being listened to any more. Corporation tax rates are at a limit and have to start coming down. And we must see some real improvements in the infrastructure.”

The survey found that nearly 70% of executives were deterred by the high cost of living in Britain. The UK’s corporate-tax regime used to be an advantage in attracting inward investment, but the survey showed it has now become one of the economy’s unattractive features.

One chief executive said: “The real question is whether these policies will lead to fewer corporate headquarters in the UK, and fewer job opportunities.” Nearly four-fifths thought Britain’s competitiveness would be either flat or decline over the next five years.

The report chimes with criticisms by the CBI, Institute of Directors and others about the shift in the UK’s relative tax position.

When Labour took office in 1997, Britain’s corporate tax rates were among the lowest in the world.

Now the country’s 30% main rate is above both the OECD (Organisation for Economic Cooperation and Development) and European Union averages. The latter is 25%.

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