UK companies 'dominating Europe'

Mr Darling could be heading for a dust up with the BCC later

UK companies dominate a champions league of European business, a government report has said.

Of the 750 top European firms, UK-based businesses were responsible for more than a third of Europe's total profits. Read original article

But, UK firms believe it is harder to start and grow a business now than when Labour came to power in 1997, a British Chambers of Commerce (BCC) report said.

The contrasting studies may spark a row between the Trade Secretary and the BCC at its annual meeting later.

"Businesses are succeeding in the UK through the desire and ambition of the hundreds of thousands of entrepreneurs who are battling to succeed in the competitive globalised economy," said BCC chief David Frost.

"Politicians now shy away from talking about wealth creation, instead focussing all their energy on how to spend the money the business community creates."

'Poor training'

According to the BCC, 69% of the 145 businesses surveyed said it was harder to set up and develop a business now than 10 years ago.

The secret ingredient to much of the success from our biggest companies is small business Alistair Darling, Trade Secretary

Mr Frost told BBC Radio 4 that companies blamed "more legislation, more red tape" and the fact that young people, in particular those at the bottom end of the system, "do not have the right attitude and skills" to enter the world of work.

"The support and help is not there for training," he added.

While Trade Secretary Alistair Darling agreed that there were problems with a skills shortage in the UK, he did add that the education and quality of people leaving university had improved.

"We are seen by the World Bank as a good place to do business and start up," he added.

'Secret ingredient'

The Department of Trade & Industry's new report underlines the point saying that there are now 600,000 more small businesses in the UK than in 1997.

"The secret ingredient to much of the success from our biggest companies is small business," Mr Darling will tell the BCC's annual conference.

"They deliver half of UK output and over half of turnover.

"The ingenuity, skills and enterprise they show are helping win over our French and German competition as the centre of choice for European business.

"Which is why it is so important that we support research and development, raise skills and help companies export."

Meanwhile, a further report from business information firm Experian showed that corporate failures fell by almost 9% during the first three months of the year.

A total of 4,433 companies failed during the period, 430 less than at the same time last year.