Chancellor Alistair Darling (pictured) should use his last Budget before the election to deliver a detailed and credible plan for balancing the books by 2015-16, two years earlier than planned, a leading business organisation has said.

“This Budget comes at a pivotal moment for the UK economy, pointed out Confederation of British Industry (CBI) director-general Richard Lambert.

“Investors are clearly jittery about sovereign debt, but are prepared to give the UK the benefit of the doubt until after the election.

“The UK’s deficit, though worryingly large, is still manageable, but the Government must act now to set out a convincing, credible pathway for balancing the books.”

He added: “It is critical that this Budget provides credibility and direction on the public finances, and creates the right conditions for businesses to drive economic growth.”

Commenting on the CBI’s proposals, its chief economic adviser Ian McCafferty said fiscal balance should be achieved by curbing spending rather than increasing taxes, and cutting current rather than capital spending.

The CBI was particularly keen for the Chancellor to reverse the planned one per cent rise in employers’ National Insurance Contributions (NICs) from April 2011, calling it “a tax on jobs”.

“The Budget should do whatever is necessary and possible to maintain and strengthen this country’s reputation as an attractive place for investment.

“The planned rise in National Insurance Contributions is particularly ill-judged. It is a direct tax on jobs and should be reversed,” Mr Lambert said.