by business editor Trevor Sturgess

An influential business group is calling on Chancellor George Osborne to cut taxes in his March 21 budget to boost jobs and growth.

The CBI proposes a new capital allowance to attract investment into types of infrastructure that do not currently quality; new forms of finance to help companies grow and take on staff; and ways to ensure environmental taxes encourage growth.

For example, it wants a rise in the controversial air passenger duty to be pegged at 5% rather than the planned 8%, matching it with the value of aviation to the economy.

Director-general John Cridland said: "Delivering private sector investment in infrastructure, supporting mid-sized businesses, hammering out the details on credit easing, extending the Youth Contract to 16 and 17-year-olds, and introducing the New Build Indemnity Scheme for mortgages at the earliest opportunity will all provide a real boost for UK growth and jobs."

The CBI also urges changes to the tax system to persuade firms to invest in the UK.

Mr Cridland added: "While the state of the public finances is tight, the Chancellor still has an opportunity in this budget to make sure the UK tax system is as internationally competitive as it can be."