More firms are outsourcing high skilled jobs to low wage economies, a new survey has found.

More than 40 per cent of company bosses told researchers they felt under pressure to relocate jobs to countries with cheap Labour.

The MORI survey for the CBI published on Monday found jobs such as technical support, back office services and human resources were most likely to be outsourced.

The two main countries to benefit were China and India.

On the first day of its annual conference, the CBI warned excessive regulation and business taxes in the UK were part of the problem.

Three quarters of bosses said they believed Britain was less business-friendly than five years ago but 78 per cent of directors still believe the UK is an "attractive" place to invest.

Digby Jones, the CBI's director general, said the survey was "deeply worrying".

"This is not just about low-skill jobs, we are now seeing a trend for higher-skill jobs to be exported too," he said.

But trade secretary Patricia Hewitt hit back arguing Britain's economy offered business plenty of opportunities despite the problems.

"I suspect that what this reflects is what I am hearing from business leaders all the time: they're unhappy about some things here, transport being one of the worst, although very happy about the economic stability and the very low levels of unemployment that we've delivered," she said.

Opposition MPs challenged the government to tackle the issue of business regulation.

Malcolm Bruce, the Liberal Democrat trade spokesman, argued "sunset clauses" on all new regulations could be a key weapon in cutting red tape.

"Britain is still an attractive place to do business, but constant vigilance is required on the amount of regulation and business taxation to ensure British industry remains competitive," he said.

"With EU enlargement imminent, the government must act to ensure British investment and competitiveness is enhanced."

Ahead of President George W Bush's visit, the CBI is also set to take the unusual step of criticising the US administration for a "slide into protectionism".

Its conference will hears calls for an end to illegal trade tariffs and buy-America policies.

"We are deeply concerned, not as some say that America is trying to dominate the world but rather that it is not interested enough," said CBI president Sir John Egan.

"There is a real danger of the country sliding towards isolationism and protectionism. The rest of the world desperately needs America to stay engaged. President Bush has an opportunity to show leadership and send a signal to the world about America's intentions."