Explaining the body's suggestion that the £5 billion a year tax on pension funds' dividend income be scrapped, Chambers president, Isabella Moore stated that:

'We were in favour of the tax when Mr Brown introduced it as many pension funds were in surplus at the time. But many are now in deficit and it should go as soon as possible.'

She went on to add that the BCC are also opposed to the £8 billion increase in national insurance contributions set to be introduced in April, arguing that British businesses do not believe that the extra money will result in improved public services.

'The danger is that all this extra spending on health and education will just end up in pay increases for the public sector. Already we are seeing the knock-on effects in the private sector.'

The BCC pre-budget submission also called for a series of tax changes to boost investment in the UK. 'These are real issues for business today that the Government needs to address if it is going to keep businesses in this country,' Ms Moore concluded.