THE Chancellor has pledged to consult business leaders on any significant tax changes which would affect the competitiveness of British industry.

Alistair Darling said he was determined that British business would not be the "fiscal fall guy".

Mr Darling, who was speaking at the Confederation of British Industry's annual dinner in London on Tuesday, also expressed optimism about the underlying strength and resilience of the British economy, and said he was confident the country would get through the world economic problems.

British business was doing well, with healthy order books at home and abroad, and the economy would continue to grow, underpinned by record levels of employment, he said.

Mr Darling told business leaders: We will listen carefully to what you have to say, and we will consult on significant changes which will affect your future competitiveness.

But we need the right corporate tax structure in order to be able to compete in the next ten or 20 years.

"That is why I set up a group of business experts to examine what we need to do to ensure that Britain remains a good place to do business."