Gordon Brown pledged on Friday to provide new measures to help British business compete as the global slump draws to a close.

The chancellor told delegates at Labour's Spring conference to expect new measures in the budget to lighten the burden of taxation and regulation on business.

He also detailed plans to increase labour market flexibility and widen the use of private finance initiatives.

The chancellor said that better economic conditions are on the horizon.

But he stressed that Britain and Europe must push ahead with economic reform if they are to capitalise on the upturn.

He also emphasised the continuing importance of pay restraint in the light of last week's poorly received public sector pay deals.

"This is not the time to relax or become complacent," he said. "Indeed this is the time, as we prepare for the up-turn in the world economy, to accelerate our efforts."

The Conservatives warned that business would "not feel any better" after listening to the chancellor's remarks.

Industry spokesman Tim Yeo said that Brown "knows that business investment is falling at the fastest rate for thirty six years, that corporate profitability is at its lowest level since 1993, and that more companies are going bust than at any time since 1994".

Ahead of planned increases in national insurance contributions in April, Brown was "offering only warm words and a jobs tax that will cost an average small business £1800 a year".

The Liberal Democrat Treasury spokesman pre-empted the chancellor's speech with a list of what Brown "would not say".

"He will not say that manufacturing is mired in recession," said Matthew Taylor. "He will not say that investment is falling."

"He will not say that his growth forecasts are optimistic. He will not say that businesses are despondent.

"Gordon Brown will not admit to himself, or the public, that in reality business is hurting."