CBI warns of foreign threat

The Government must prevent further labour market regul-ation from eroding
the UK economy’s major strength – its flexibility, the CBI has warned.

The warning followed a report from the Office of Economic Cooperation and
Development which showed that the UK’s flexible labour market is one of its
major attractions for inward investors.

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"The threat is not so much that jobs will go to France and Germany but
to India, China and Brazil," said director general Digby Jones.

Shoe maker Dr Martens announced last month that it was to shut its British
factories and move production to China, with the loss of more than 1,000 jobs.