INWARD investment from foreign companies coming to the UK fell seven per cent in the past year, according to the latest figures.

Invest-UK, the Government's inward investment agency, said 709 investment projects from 35 countries began during the year.

This number was down from the previous year's 764 projects.

The number of jobs created by the projects was higher than the previous year at 34,396, while 548 investments and expansions took place.

Computer software, along with IT and Internet-related schemes, continued to lead the way, despite the downturn in information and communications industries.

Trade and industry secretary Patricia Hewitt said: "Britain is an excellent place to do business because of the economic decisions we have taken in government.

"We have the lowest inflation for 30 years, the lowest interest rates in 40 years and the highest employment ever, and our economy - unique in the G7 - has avoided recession."

Kevin Curran, general secretary of general workers' union the GMB, said the figures were "further evidence of the damage to Britain's economy caused by our delay in joining the euro".