British business has been accused of under-investing and competing by driving down costs and prices.

In a submission to the DTI on competitiveness in the UK, the TUC said: "The UK cannot compete for much longer with a strategy of building things cheaper."Brendan Barber, the TUC's general secretary, said British business was preoccupied with "whingeing" over red tape and urged the government to do more to boost productivity.