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John Cridland, director general of the organisation, suggested the coalition needs to completely transform the investment landscape if they are going to impact trading strategies.
He said: "It is worrying how many business leaders are telling us that the UK no longer holds the same attraction it once did and are questioning whether they need to be here."
The CBI released a report entitled Making the UK the Best Place to Invest, which highlights the key factors that allow and prevent investment.
Mr Cridland noted that economic growth and jobs will be created if obstacles to such activity are removed.
Last week, the CBI director for business environment Rhian Kelly described it as encouraging that a diverse range of companies benefited from the first round of Regional Growth Fund bidding.
Posted by Clive Arneil
