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Businesses across Nottinghamshire and Derbyshire have called on the main political parties to take positive action instead of squabbling over the urgency and severity of spending cuts to bring down the UK's ballooning budget deficit.

Local firms contributing to the British Chambers of Commerce's latest monthly business survey believe that an incoming Government should make reducing the budget deficit its number one priority.

Around 22% of firms said that slashing the red tape burden should be the Government's top concern, while 13% argued that the focus should be on making the UK's tax system more competitive.

Businesses also revealed that the planned increase in employers' National Insurance Contributions will be the most damaging tax rise for the Government to impose on them - just 6% felt that the proposed hike in April 2011 would be the least damaging option, compared to 36% for VAT.

According to the Treasury, raising VAT by just 1% - to 18.5% - would net the Government an extra £4.5bn in revenue. The 1% increase in National Insurance contributions would provide a similar sum, raising £5.1bn. With these figures in mind, Derbyshire and Nottinghamshire Chamber is backing the BCC's calls for the planned hike to be scrapped and substituted by a VAT rise, coupled with targeted spending cuts.

George Cowcher, Chief Executive of the Derbyshire and Nottinghamshire Chamber, said: "The message from the Chamber's member businesses is clear - after the election, whichever party gets in has to get a grip on the country's public finances and escalating debt.

"This can only be done by making tough decisions on spending. Freezing the public sector wage bill and reforming public sector pensions to help rebalance the economy back toward the private sector would be a good place to start.

"Business has a massive part to play in the recovery of the local - and national - economy but in order to create growth, jobs and wealth, local firms need effective, targeted support from Government.

"The planned increase in employers' National Insurance contributions is a damaging, counter-productive tax on business. It should be scrapped and offset with a 1% VAT increase. It's a tough call to make, but the Government has to be realistic about repairing the public finances, and promoting recovery."