The Trade Union Congress (TUC) and the Confederation of British Industry (CBI) are at loggerheads over the taxation of businesses in the UK, on the eve of the annual Trades Union Congress in Brighton.

TUC general secretary Brendan Barber claimed business should pay more if tax increases are needed to maintain the current levels of spending on public services in the coming years, while the CBI has argued the exact opposite, saying recently that business taxes are too high and that Britain is losing its competitive edge with its main European and Asian rivals as a result.

John Cridland, CBI deputy director-general, was scathing in his response to Barber, according to The Observer saying: 'What planet is the TUC living on? The tax burden on UK business has risen consistently over the past decade, just as other major economies have cut their business tax rate, causing a slide down the Organisation for Economic Co-operation and Development's tax competitiveness tables.

'If we are to remain competitive, and continue to create jobs and wealth, we need a cut in business taxes, not another hike.'