High interest rates and the UK's refusal to join the euro have persuaded the inventor and entrepreneur James Dyson against building a new factory in Britain.

Mr Dyson is best known for the invention of the bagless vacuum cleaner and a wheel barrow that can't tip over.

Speaking to the BBC, Mr Dyson blamed the strong pound for his decision.

"The problem is that the pound is overvalued by 30%. When we export we are 30% more expensive," he said.

"We are becoming a very international business and our exports are doubling every year."

His company employs 1,800 people in Malmesbury, Wiltshire. Staff there will not be affected, he told BBC Radio 5 Live.

Dyson has between £50m and £60m in overseas annual sales.