The CBI has called on the newly elected Labour government to make “courageous decisions” and continue public sector reforms.
Despite its reduced majority, CBI director general Sir Digby Jones said it was in the interests of the economy and the country that the government kept up with its efficiency drive.
Jones said: “Reforming the public sector to make it more efficient will require real political will, but it is vital if we are to secure quality public services across the UK.”
He also called on the government to be wary of raising business taxes.
“We have reached a crossroads for Britain’s reputation as a preferred location for multinational companies,” Jones said. “If the business tax burden in this country is not kept under control and reduced over the medium term, some of those companies will find a more welcoming environment in which to create wealth and jobs,” Jones said.