Sir John Egan last night accused the Labour government of 'milking' businesses as if they were 'voteless cows', according to reports.

Relations between the government and business have deteriorated after the government increased the corporate tax burden in the March Budget, while issues including increased red-tape continue.

Egan added to the situation by slamming the present administration for pouring money into public spending, which he said showed little evidence of actually improving services.

And he called the increase on national insurance, as announced in the last Budget, a direct tax on jobs, adding that the government had 'gone too far'.