Bosses from Sussex have called on Chancellor Gordon Brown to cut business taxes.

Industry leaders say he needs to stem a relentless and damaging rise in red tape and taxation.

In a strongly-worded statement, the CBI joined the Institute of Directors (IoD) in pressing for tax restraint.

The CBI estimates tax increases will cost firms £47 billion between 1997 and 2005 and urged Mr Brown to consider the competitiveness of UK businesses when preparing his pre-Budget report, due later this month.

CBI director general Digby Jones said: "Where taxes go from here could be the biggest test yet of the Government's pro-business credentials.

"Ministers cannot keep siphoning off company funds without damaging investment, productivity and competitiveness."

With the Government likely to see growth forecasts fall short of targets, the CBI is concerned any shortfall in tax revenues could be met by higher taxes.

Mr Jones said: "Business would prefer a short-term rise in government borrowing to yet more tax increases."

Coupled with an increase in red tape, the CBI's provisional estimates suggest total costs to business could reach £15 billion a year.

The Sussex IoD branch treasurer Richard Hopkins said: "Local businesses are desperate for a period of stability which will allow them to focus on creating wealth, rather than administering ever more complex taxes.

"For far too long, the business sector has carried the burden of administering taxes on behalf of the Government.

"We believe this needs to change if Sussex businesses are going to remain competitive within a global economy.

"The world economic recovery is looking fragile and many of our local economies are still trying to recover from last year's September 11 crisis.

"Much of the optimism of the first half of the year seems to have dissipated.

While the UK has one of the better-performing economies, growth expectations have weakened.

"We now expect the economy to grow by 1.5 per cent this year and 2.5 per cent next."

The IoD was fully supportive of the CBI's call.

A period of stability was needed to enable businesses to consolidate and grow.

Mr Hopkins said: "For too long the burden of administering taxes on behalf of the Government has been shouldered by the business community.

"Now is the time to take stock, step back and stabilise the current system."