Britain is becoming a less attractive place to invest and work in because of government tax plans, trade and investment minister Digby Jones said, the latest non-political appointee to question policy.

The ruling Labour party has come under pressure to match opposition plans to raise more tax from wealthy foreigners living and working in Britain.

It has proposed to end tax breaks which mean rich residents who are non-domiciled for fiscal purposes pay no UK tax.

"I can give you five reasons as to why you should invest in Britain before you go and invest anywhere else in Europe," Mr Jones told the Financial Times newspaper.

"But maybe there were seven and now there are five."

The government is due to report soon on its plan to charge, after seven years residence, non-domiciled residents £30,000 a year to keep their status or become a normal UK taxpayer. "It has caused people to say: 'Does this mean you don't want us?'" Mr Jones said. A spokesman for the minister did not deny the reported quotes but said Mr Jones believed he could continue successfully to make the case for investing in Britain.

"Lord Jones was registering concerns that he picked up while abroad promoting Britain to foreign investors, as it is his role to do," the spokesman said.

"But he made clear in the interview that he believes it is reasonable that those who are coming here to enjoy the opportunities Britain provides make a contribution towards its prosperity after seven years.

"He is clear that the UK remains an excellent place to invest."

Prime Minister Gordon Brown brought Mr Jones, one of a number of non-political appointments, into his government as part of an attempt to better reflect the range of views in Britain, a so-called government of all the talents.

But the plan has backfired on a number occasions.