In the light of the credit crunch, the government should not treat business as a "fall guy" by raising taxes and pushing through rushed regulation, an industry body has warned.

According to the Confederation of British Industry (CBI), the UK economy remains strong enough to weather the storm providing the correct decisions are made.

Speaking at the organisation’s annual dinner earlier this week, CBI president and chairman of British Airways Martin Broughton said: "The things that are right will see us through this crisis, as they have seen us through others before it.

"British business has enjoyed a remarkable period of sustained growth – and though it may be slowing it does not look like stopping."

He went on to say that industrial and commercial Britain is "in sound financial shape" as a whole and welcomed the action taken by the Bank and the Treasury recently to inject liquidity into the financial markets.

In other CBI news, the organisation recently spoke out about the government’s new agreement which will see agency staff who work in an organisation for 12 weeks offered increased employment rights, describing the move as the "least worst option".