The CBI and British Chambers of Commerce are urging the chancellor, Gordon Brown, to cut tax by no more than £2 billion in his March budget.

The separate budget submissions also call on Brown to cut the burden of red tape facing business.

The CBI's submission focuses on the proposed research and development tax credit for large firms, consultations on capital gains on substantial shareholdings, the tax treatment of intellectual property and problems posed for companies by the climate change levy.