Pressure is mounting on Chancellor Gordon Brown to back British manufacturing or witness its demise.

The Government has been warned it needs to loosen the chains binding its coffers to bolster key areas, such as infrastructure, technology and skills, to give Britain a fighting chance.

The British Chambers of Commerce (BCC) issued a report yesterday urging the Government to increase investment in the manufacturing sector or risk it dying out altogether.

In its submission to the Chancellor ahead of his pre-budget report, the BCC said the sector remained weak, with little improvement in productivity, while costs were rising.

The North East Chamber of Commerce echoed that sentiment and reinforced the stance by saying the region should be singled out for special attention.

John Irwin, president of the regional chamber, said the same demands came from businesses looking to invest in the area - better levels of skills and education, better transport infrastructure and less red tape - to make manufacturing viable.

He said: "All businesses need to have the basic infrastructure in place. We are missing a few of those building blocks.

"We need to have that in place sooner rather than later just to make us as good as other parts of the country."

The ever-increasing urgency for Government intervention to save vital facets of British industry has led to something akin to a rallying cry.

The Confederation of British Industry highlighted the plight of smaller organisations which have seen orders and output fall at the fastest rate for a year.

Simon Bartley, chairman of the CBI's Small and Medium Enterprise Council, said: "Smaller manufacturers continue to face torrid times. An unexpected fall in orders and output has damaged confidence and job cutting is expected to accelerate."

The BCC also hit out at the high levels of regulation, for which the Government had yet to offer a "viable" solution, and pensions.