The UK remains the top spot for attracting foreign direct investment (FDI), but Brexit uncertainty continues to lessen its lead, according to newly released figures.

Last year the UK attracted 6 per cent more FDI developments than 2016, according to figures collated by EY in a survey of 450 global investors.

After London, Scotland proved the most attractive location for foreign investment, with a marked rise in particular with respect to research and development projects in the region.

A 70 per cent increase revealed Scotland as the best-performing part of the UK, with Scotland’s share comprising 24 percent of the UK overall.

However, the UK fell behind France, which grew by 3 per cent, overall lagging behind the European average growth rate of 10 per cent.

According to EY’s figures, the UK’s market share fell for the second consecutive year in 2017, and is likely to suffer further falls.

As a result, the data revealed that investors were leaning towards Germany for future projects. France followed in second place boosted by the election of pro-business Macron, with the UK coming in at third.

Whilst Britain welcome a 22 per cent bolster in foreign investment into digital enterprises, this compared to an average 33 per cent rise recorded across Europe.

Investor anxiety with respect to economic uncertainty relating to Brexit was particularly evident in sectors such as financial services, with the number of firms opening headquarters in the UK on the decline.

EY senior partner in Scotland, Mark Harvey, said: “Scotland has demonstrated an outstanding ability to attract and drive sustained growth of FDI.

“However, the performance of the UK as a whole within Europe is a signal that competition for FDI projects is intensifying and our previous levels of attractiveness are not guaranteed to continue.”

He added: “Economic growth (in Scotland) is positive, but sluggish, and access to labour is a recurring challenge that makes it more difficult to expand operations.

“Scotland must work increasingly hard, with private and public sectors in partnership, to ensure the pipeline of talent, skills and experience is strong enough to drive business and economic growth in the future.”