Over 40% of businesses believe that it is vital for the country's economy that the next government implement spending cuts to bring down the UK's expanding budget deficit, according to a survey by the British Chambers of Commerce (BCC).

The survey also revealed that 22% of firms said that slashing the red tape burden should be the government's top priority, while 13% argued that the focus should be on making the UK's tax system more competitive.

"The message from business is clear. After an election, we have to get a serious grip on the country's public finances and escalating debt. Cutting the deficit means making tough decisions on spending, like freezing the public sector wage bill and reforming public sector pensions," said David Frost, Director General of the BCC.