High taxes and too many regulations have made British industry uncompetitive, according to Sussex bosses.

The Sussex branch of the Institute of Directors wants the next government to level the playing field.

The institute said Britain had slipped from fourth in the league table of competitive countries in 1998 to ninth last year.

Michael Evans, chairman of the Sussex branch, said: "There is no doubt that our international competitiveness has deteriorated in recent years, despite experiencing good economic growth and macroeconomic stability since the early Nineties.

"The UK has a global economy and must retain its competitiveness so business can thrive and deliver jobs and prosperity for all.

"Short of closing our borders to trade with the rest of the world, we must compete to stay in the race."

He said he wanted to see the reasons for the slippage reversed, including the rapidly-rising taxes on business and the constricting regulation of the labour market.

"Employment regulations damage business and jobs.

"We would urge any government to retain the pound for the foreseeable future. Joining the European Monetary Union too early risks destabilising the economy and a return to boom and bust.

"But it is not just employment regulations that are onerous for business. The tax system is long overdue for simplification and all regulations should both have sunset clauses and be regularly and rigorously audited."

To regain Britain's competitive position, Sussex bosses have prepared a list for the next government.

It includes maintaining low inflation by keeping the pound and the current system of setting interest rates for the foreseeable future. The institute also wants the Government to consider incentivising people to spend more on health and education, reconsider the Climate Change Levy and review planning regulations.