Chancellor Gordon Brown risks further cuts in corporate investment and long-term damage to UK competitiveness unless he uses the Budget to put business first, the CBI said today.

In a submission to the Government ahead of the April 9 Budget, the CBI said the tax burden on business must not be increased further and warned rises in business taxes have worsened a five-year decline in corporate profitability.

The CBI also urged Mr Brown not to risk the health of the economy by announcing increased spending plans.

But it said the Government's fiscal rules would not be compromised by measures, costing up to £1 billion, to ease urgent problems with pensions.