Hugh Osmond, the serial entrepreneur, is considering relocating Pearl Assurance, his financial services group, outside the UK for tax purposes, in the latest sign that frustrated businesses have lost faith in the Labour Government.

Mr Osmond, who famously floated the Pizza Express restaurant chain and turned Punch Taverns into one of Britain's biggest pub landlords, told The Times yesterday that Pearl was already likely to list some of its investment funds offshore.

He said that it would be relatively simple to transfer other functions, including the head office, outside the UK to lower-tax locations, such as Dublin or Geneva.

Mr Osmond also said that he was considering leaving Britain himself, in frustration over an administration that he sees as no longer friendly towards the country's top entrepreneurs.

The departure of Mr Osmond, whose fortune has been estimated at £350 million, would be a slight to the Government, which has prided itself on encouraging an enterprise economy.

Mr Osmond said: “Serial entrepreneurialism is the best wealth-creator you can get. If you are an entrepreneur, you can be anywhere ... Everyone in our office, everyone I speak to, is considering it.

"Any entrepreneur who has made more than ten million quid is looking at leaving.”

A growing number of companies, including WPP, the advertising group, and Aberdeen Asset Managment, the fund manager, are considering ditching Britain as their tax jurisdiction.

British business has grown increasingly angry about a high corporation tax rate of 28 per cent, changes to capital gains tax and mooted Treasury plans to charge a levy on foreign profits.

The Times revealed last week that Old Mutual, the FTSE 100 insurer, had considered a move overseas and would not rule out revisiting the idea. Shire, the pharmaceuticals group, has said that it is leaving Britain.

Yesterday Diageo, the drinks group behind Guinness, denied looking at a move to the Republic of Ireland.

Companies are considering their options despite efforts by the Treasury to respond to their concerns.

Alistair Darling recently launched a review of the tax regime. It was reported yesterday that the TUC would be represented in the review, which would include Paul Richardson, WPP's finance director.

The Treasury could not confirm this.

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