MICHAEL Howard, MP for Folkestone and Hythe, has again accused the Government of bringing business to its knees with red tape.

Speaking to members of the Kent branch of the Institute of Directors in the Burlington Hotel, Folkestone, the shadow chancellor said red tape and taxes cost business £15 billion a year.

"The cumulative consequences, in today competitive world, is slowly undermining the competitiveness of British businesses," he said.

He focused on the economy, stressing that although the country was now into the 10th year of economic growth, there was a great deal to worry about. "Our economy is severely unbalanced," he said.

He contrasted the inflated housing market with the low, four per cent savings ratio. He claimed that the most recent trade deficit figures were the lowest since 1697 and that business investments had fallen more sharply in the last year than in the previous 36 years.

This was compounded by the falling stock market, the poor record of ISAs over the now abandoned PEPs and TESSAs, and the pension crisis where, he said, "the more you save the less you get."

After his speech, a questioner claimed that the Tory Party did not have enough policies that were clear and that its messages were not getting through.