Britain has leapfrogged Germany, China and India to become the second most attractive country for investment behind the US for the first time in PwC's annual UK CEO survey, writes Holly Williams.

In a boost to the UK's Chancellor Rachel Reeves, the poll showed the UK moved from the fourth most important destination for investment the previous year, while also revealing top bosses see a brighter economic outlook for Britain in 2025.

The PwC said the survey was a "vote of confidence in the UK", showing that 14 per cent of worldwide chief executives believe the UK will receive the greatest proportion of international investment, behind the US, with 30 per cent, and followed by Germany (12 per cent), China (9 per cent) and India (7 per cent).

It found 61 per cent of UK chief executives are optimistic about UK economic growth in the next 12 months, up from just 39 per cent in 2023.

It comes as Reeves has faced mounting questions over flagging UK growth, the impact of her recent Budget measures and rising UK debt levels.

Marco Amitrano, of PwC UK, said: "Our survey findings are a vote of confidence in the UK as a place for business and investment.

"The UK's relative stability at a time of instability should not be underestimated, nor should its strength in key sectors including technology.

"However, there is no room for complacency. Reasserting Britain's place on the global stage requires a tangible path to growth."