That's the view of the Coventry and Warwickshire Chamber of Commerce, based on evidence from its national body - the British Chambers of Commerce (BCC). 

The BCC has revised forecasts for economic growth for 2010 and 2011, downgrading its prediction for 2011 to 2.1 per cent from 2.3 per cent.

Public sector borrowing is predicted to be smaller in the next two years than first predicted, but the BCC believe Treasury forecasts after that are 'too optimistic'.

The recovery must be business-led, say the BCC, and therefore red tape should be frozen and any new business taxes avoided. 

Alan Durham, the director of policy at the Coventry and Warwickshire Chamber of Commerce, said: "This is a very detailed report and will be used as a tool to lobby the Chancellor ahead of his final budget before the election.

"What is abundantly clear is that business will have to lead the economy to recovery because of the levels of public deficit. Cuts will have to be made in the public sector so growth in jobs must come in the private sector.

"When we speak to businesses in Coventry and Warwickshire, they say they want to see a suspension of red tape to allow them to get on and run their companies. 

"And they are concerned that business will be hit with greater taxation to try to reduce the deficit. Already there are plans for an increase in National Insurance and that has the potential to stem growth.

"Businesses see that as, essentially, a tax on jobs and it is our belief that this should be scrapped for the sake of the recovery.

"At this time where the recession is over but the economy is still extremely fragile, business people need the freedom to be able to create wealth and jobs that will benefit everyone."

Organisations in Coventry and Warwickshire looking to grow their business after the recession will be able to pick up advice on a range of issues including accessing funding at an event next week.

The Coventry and Warwickshire Chamber of Commerce is holding a Business Support and Networking Open Day at its Oak Tree Conference Centre in Binley on Tuesday, March 16, from 10am until 4pm.

It is free to all businesses and will feature advice and information on how to access available funds and business support services for growth; and the chance to meet new contacts and promote the business to a wider audience.