The British Chambers of Commerce has called on the government to introduce a two-year pay freeze in the public sector and protect long-term spending on infrastructure.

Today, the BCC wrote to the chancellor George Osborne ahead of the Emergency Budget on 22 June, calling for capital investment to ensure business confidence and support the economic recovery.

David Frost, director general of the British Chambers of Commerce, said: “The Chancellor faces a difficult balancing act next week. The right choices would put business growth at the very heart of government policy. But short-term moves on tax or infrastructure spending could hurt business confidence and economic recovery.

“Spending cuts must focus on programme spending and waste, rather than vital capital investment. There should also be an immediate two-year freeze on the public sector wage bill, and urgent reform to rein in the huge costs of public sector pensions.”

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