Confidence 'needs to restored' in public finances

The Budget needs to showcase plans for public finances that will restore confidence, an expert has claimed.

Richard Lambert, the Confederation of British Industry's (CBI) director-general, noted in a letter to Alistair Darling that the UK's fiscal credibility had to be improved.

It is a critical time for the economy, he noted, with Britain seemingly getting the benefit of the doubt over its situation until after the general election.

While the deficit is "worryingly large", Mr Lambert added, it is still manageable and it is up to the government to deliver a credible plan to "balance the books".

One measure that the CBI has stated could be good is a more detailed plan for public spending, which could focus on cuts, rather than tax increases.

It was recently suggested that businesses needed an easier levy system, as Steve Hughes, economic adviser at the British Chambers of Commerce, observed that it can very often hinder a company from growing.