Company directors today called for public spending to be reined back dramatically over the next few years to help the UK remain competitive.
The Institute of Directors (IoD) accused the Government of living beyond its means, "like thousands of indebted consumers".
Director-general Miles Templeman said radical changes were needed in fiscal policy, adding: "We're spending far too much money in the wrong areas and not enough in the right areas such as transport infrastructure.
"We need to shrink the size of the state by introducing a new fiscal formula."
The IoD said there should be a "root and branch" reappraisal of public spending across all regions of the UK.
Public spending growth should be restricted to 1.5 per cent a year up to the year 2011, the directors said.
Mr Templeman said: "The warm glow the economy has given off over the past decade will soon begin to cool.
"We've had short-term gains from higher spending, but we now risk the long-term pain from the Government being just too big."
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereComments are closed on this article