The Confederation of British Industry (CBI) has stepped up its plea to Chancellor Gordon Brown for a reduction in business tax levels, claiming that changes to the tax code make inward investment in the UK less appealing.

In a submission to the Chancellor before next week’s Budget, the employers’ group says that Britain is losing its competitiveness as it slips down the international tax table.

John Cridland, deputy director-general of the CBI, said that companies’ views of fiscal and tax policies had hardened since the Pre-Budget Report.

“The concern has mounted amongst British business that constant tax grabs from the Exchequer are weakening our competitive position,” he said. “We have seen clear signs that profitability has peaked.”