London's position as Europe's leading financial centre is being threatened by Gordon Brown's addiction to tax and red tape, according to former chancellor Nigel Lawson.

He warned that the government was in danger of driving Britain's most profitable businesses away, according to the Daily Telegraph.

In a pamphlet published today by the Centre for Policy Studies, Lawson said one of the biggest threats to London's position was the level and complexity of taxation.

'Over the past ten years, both the burden and the complexity have greatly increased, the latter mind-boggingly so,' said Lawson. 'This process badly needs to be reversed.'