THE chief executive of Swindon's Chamber of Commerce has warned that there is no room for complacency when it comes to investment.

Dennis Grant told the Evening Advertiser that Swindon like the rest of the UK has a lot to offer firms but stressed the need to take a sensible approach.

He said: "The many manufacturing firms that come to Britain are not coming here for the weather.

"It is still a great place to do business but complacency would definitely be a mistake."

Mr Grant's comments come in the light of a survey by the Confederation for British Industry, which they say challenges Government complacency.

It found many industry captains have severe doubts over the future of British industry.

"The CBI is right in so much that there are other places in the world where it is just as good to do busi-ness," said Mr Grant.

"It all depends on the nature on the business. If you are a manufacturing firm then the high cost of living and housing will mean that the UK is perhaps not a good location I can understand then why places such as South East Asia begin to look very attractive."

Meanwhile Digby Jones, CBI director-general, said it is time the Government woke up.

"I am pleased with the better performance of the UK economy this autumn.

"But when top company decision makers start giving the kind of signals contained in our survey the Government must sit up, listen and take action.

"There is widespread concern about the UK's declining competitiveness and this is starting to feed through to investment decisions."

It seems an ever-rising number of business leaders are looking overseas to get the edge on their competitors.

According to the survey, 59 per cent said they are likely to expand operations outside the UK over the next couple of years.

faced pressure to send part of their activities abroad while 29 cent said they have already done so.

Since the recession of the 1980s and early 1990s, production has traditionally been affected most.

But now the CBI claim many companies are choosing to relocate their IT support, call centres and financial operations.

The survey suggests excessive red tape is one of the main reasons for this.

Almost all respondents said they spent more time complying with regulations compared with five years ago and 91 per cent expected this to worsen over the next five years.

Tax increases totalling a cumulative £54 billion between 1997 and 2006 has also had a significant affect on business with one in four firms saying they had triggered staff cuts.

Mr Grant says the situation in Swindon mirrors the national picture with a sharp rise in the number of service-sector firms and a steady decline in more traditional industry.

kshoesmith@newswilts.co.uk