INVESTMENT in the UK slumped in the first half of this year, hit by the downturn in the telecoms industry and tougher competition from Central Europe, a report said today.

The survey, by accountancy firm Ernst & Young, said the number of new investment projects from overseas into the UK fell by 25 per cent to 150 in the six months to the end of June, from 201 in the same period last year.

In addition the UK's share of the European market for investment projects slid from 22 per cent last year to 16 per cent, although it is still the largest recipient of projects in Europe.

The number of jobs created or safeguarded slumped 25 per cent to 122,000.