THE Government must bring down the deficit and make education and transport top priorities, the Institute of Directors (IoD) have said.

A survey of 1,211 members, conducted immediately after the General Election, reveals the UK’s small and medium-sized firms overwhelmingly believe the deficit reduction should be achieved primarily through spending cuts, rather than tax rises.

The research also shows more than half strongly oppose increases in national insurance, income tax, VAT and business rates.

It added half of those asked want the Government to invest in the railways, with similar support for spending on roads and airports over the next five years, and there was also support for a clampdown on tax avoidance.

Simon Walker, IoD director, said: “The election result was more decisive than most expected, and now is the time for the new Government to take decisive action.

“Returning the budget to surplus must be the overriding goal in this Parliament, but businesses want the emphasis to be on finding further reductions in spending, not significantly raising taxes.”