Businesses have given a generally positive reaction to chancellor George Osborne’s address to the Conference Party Conference yesterday.

In his speech, Mr Osborne outlined £25 billion additional cuts to public sector spending, including a two-year freeze in welfare benefits.

But he promised to keep taxes low, tackle youth unemployment and continue acting to lessen the UK’s annual deficit.

In response, business groups said they wanted to see a “fair tax environment”, with more provision to combat youth unemployment and more effort to increase rates of house-building.

John Cridland, CBI director general, said: "The economic recovery is strengthening, but it's certainly not job done, so businesses will be buoyed to hear the chancellor commit to an economic plan for the long-term.

He added: “Investment in infrastructure, like runways, and in skills are the right choices to boost growth across the country.”

Terry Scuoler, CEO of the Engineering Employers Federation, said: “The Chancellor has made it clear that protecting and building the economy will remain his central focus through the election and beyond.

“We welcome this and industry will not be alone in applauding – eight in ten consumers polled by EEF support this too.”