Construction work in London's Financial centre at Canary Wharf In London, Britain May 22, 2017. REUTERS/Russell Boyce

LONDON (Reuters) - British companies are likely to keep on increasing investment at a modest pace over the next year before weaker increases over the following two years, the Bank of England said in a report on Wednesday.

“Economic uncertainty was the biggest drag on investment plans,” the BoE said, citing a survey of 375 firms.

“Expectations about future trading arrangements and other factors related to the United Kingdom’s decision to leave the European Union, such as concerns around the future availability of overseas labour, were also reported to be restraining investment,” it said.