THE Government has been urged to "roll back" the burden of business taxation as part of a drive to boost manufacturing competitiveness and save thousands of jobs.

The Confederation of British Industry warned that moves by firms to shift away from traditional low-cost manufacturing to high-tech, high-value products were being hit by an uncompetitive exchange rate and increases in regulation and taxation.

The employers' group urged ministers to extend tax credits for research and development projects.

Director general Digby Jones said: "Ministers must do more to roll back the burden of business taxation, which has gone up £5 billion a year during this parliament."

The CBI has warned that 73,000 manufacturing jobs could be lost by 2002.