Red tape and growing taxes are stifling the UK's hard-earned economic success, according to the director-general of the Confederation of British Industry Digby Jones.
On the eve of Chancellor Gordon Brown's Pre-Budget Report, Mr Jones warned that any increase in business tax would damage investment, productivity and competitiveness.
He urged Mr Brown to choose increased borrowing to fill the gap in Treasury finances, rather than cutting back on public spending or raising tax.
The Government should resist further regulation of business by the European Union and stand up to the unions, in forcing through reform of the public sector.
In his keynote conference speech, Mr Jones said: "There is a strong feeling in the business community that our hard-fought competitive edge is being taken for granted and that the UK is in danger of losing its recently hard-earned economic success.
"It is disappointing that we have to give such a stark message to the Government.
"Sadly, on too many fronts there are real signs that the Government does not fully understand the regulatory and fiscal climate that business needs if it is going to remain competitive and continue to drive the British economy."
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