UK drops in world's 'business-friendly' rankings

The UK has fallen in the business-friendly rankings produced by the World Bank, suggesting it is harder for small businesses to be started now than it was last year.

A cut in Corporation Tax by Chancellor of the Exchequer, George Osborne, was praised by the latest report, but the country fell down when it comes to tax and regulation.

Indeed, the Telegraph reports that the findings said bureaucratic delays on property registration and construction permits are also hindering firms.

The news provider quoted the report as saying: "The economies that rank highest on the ease of doing business are not those where there is no regulation - but those where governments have managed to create rules that facilitate interactions in the marketplace without needlessly hindering the development of the private sector."

It comes after HMRC announced that the 2010-11 tax gap was 6.7 per cent, falling from 7.1 per cent the year before.

Posted by Emily Smith

Date published 31 Oct 2012 | Last updated 24 Oct 2012