Business anger at Wednesday's Budget is growing after it emerged that companies will pay the lion's share of the £8.3 billion tax increase announced by the chancellor.

According to research, three-quarters of the increased tax-take will be paid by business.

Despite a series of tax credits for industry, the CBI has calculated that the tax burden faced by business will grow by £2.5 billion.

Industry is warning that the Budget could hit jobs and lead to an increase in the black economy in areas such as the building industry. However economists are pointing out that Britain still has the edge over its international competitors.

Meanwhile a change in the tax regime affecting foreign banks has led to claims that many will simply pack up and go - undermining on of the strongest sectors of the UK economy.

The IMF warned that new spending measures should be introduced with "caution".