The CBI has today argued that more reform, not less, is needed to secure improved public services.

In his first speech on public service reform as CBI director-general, Richard Lambert, said: "Business is committed to taxpayer-funded public services. But if services do not improve, I fear public support for this model of service provision will wane. Some people will have the option to go elsewhere. But others will have no option but to accept the sub-standard services offered to them, and resentment will grow."

However, figures from the 2007 CBI Public Services Survey, show that only 17% of firms are confident the momentum of public service reform will be maintained when Tony Blair steps down later this year. The survey also shows that 78% of businesses are already concerned that the pace of reform has been too slow.