THE next Government must focus on cutting the UK’s deficit, make a decision on EU membership and scrap GCSEs to build a stronger economy and give young people a better future.

That’s the view of business lobbying organisation CBI, which has called for action from the party that wins next year’s General Election.

John Cridland, CBI director-general, said cementing the UK’s reputation as a place to do business must remain a top priority.

He also highlighted the need for ministers to reform the education system to increase skills, while delivering facts on EU membership.

Mr Cridland said: “A year of change and challenge beckons for us all as we hurtle towards the election.

“It has been a successful year for the UK economy, and we have emerged stronger and more able to tackle the challenges.

“But the political and economic risks at home and abroad represent a clear and present danger, and politicians must not take their eyes off the economic ball.

“We must sustain the best launch pad for the UK economy and our young people.”

Mr Cridland said it was important ministers looked at cutting the deficit, while reiterating the need to change education.

He said: “Deficit reduction is a must, but the main parties seem reluctant to be upfront on the major structural changes needed to prevent public services suffering decline through a thousand cuts.

“Much of the low hanging fruit is long gone and only radical solutions will deliver.

“Young people are streetwise and impressive, but our education system doesn’t always serve them well.

“While the average is gently improving, we see too many left behind, and others who could be high achievers not fulfilling their potential.

“We need to get the basics right first time in primary school and then provide a personal menu of tailored learning plans for all 14 to 18-year-olds offering high quality academic and vocational A-Levels, and encouraging young people to mix and match, depending on what's right for them.

“This will involve the eventual abolition of GCSEs at 16, as peak level testing would then take place when students are 18.”

Mr Cridland also said changes were needed over the EU.

He added: “The fundamental choice here is whether Britain wants to be a global citizen or retreat behind national borders.

“Political isolationism would leave us poorer and the majority of CBI member companies of all sizes want to remain in a reformed EU.

“The EU has to reform and needs to be more competitive, outward looking and open.

“It must sign more trade deals, but we also need less EU; no more lifestyle regulation on matters like employment, which should be left to member states, and no more damaging regulations on UK financial services vital to fuelling growth across Europe.”