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30/10/2013 07:55 GMT | Updated 30/10/2013 07:59 GMT

World Bank: It's Easier To Start A Business In Afghanistan Than Britain

President of Afghanistan Hamid Karzai, right, meets with British Prime Minister David Cameron as he arrives for a meeting at 10 Downing Street in London, Tuesday, Oct. 29, 2013. (AP Photo/Sang Tan)
AP
President of Afghanistan Hamid Karzai, right, meets with British Prime Minister David Cameron as he arrives for a meeting at 10 Downing Street in London, Tuesday, Oct. 29, 2013. (AP Photo/Sang Tan)

Afghanistan, Mongolia and Armenia are easier places to start up a business than Britain, according to a heavyweight study by the World Bank.

According to the international lender's annual "Ease of Doing Business" study, the UK fell 10 places to 28th in its assessment of the easiest places to start a new business, leaving it below other countries like Azerbaijan, Kyrgyzstan and Malaysia. New Zealand is the easiest place to do business, according to the study.

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In response to the World Bank's study, Labour's shadow business secretary Chuka Umunna said: "Under Cameron's watch, the UK now ranks below Afghanistan, Mongolia and Armenia in World Bank rankings for best countries to start a business."

This comes after a study released on Monday by the Legatum Institute found that the UK had fallen behind Austria and Iceland in a ranking of the world's most prosperous nations.

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The World Bank study also placed the UK at an embarrassing 74th place in ranking the easiest places for a new business to get an electricity connection, putting it below countries like Slovenia (32nd) and Lebanon (51st). This comes as the big six energy companies blamed their rising prices on government green taxes.

In good news for Britain, the World Bank said the overall ease of doing business in Britain remained high at 10th place.

The United Kingdom was also ranked as the best nation in the world for businesses to get credit, despite frequent complaints that the banks are not lending enough.