Major cutbacks in government expenditure must be made to combat the UK's debt "crisis", according to proposals which call for 10% cuts in non-frontline staffing levels.
The Institute of Directors and the Taxpayers' Alliance are both calling for measures to be implemented which they say could save up to £50bn during the current recession and help kickstart a recovery.
Among cost-cutting measures suggested by the groups are a pay freeze on the state pension, abolition of the identity card scheme and a 10% cut in the size of the civil service and a 10% reduction in non-frontline staff in both the NHS and schools.
Other suggestions include targeting spending on free bus passes for the elderly and disabled on those who genuinely needed it, the abolition of child benefit and the child trust fund while increasing child tax credit, and abolition of free TV licences.
Miles Templeman, Director General of the Institute of Directors, said: "The UK is in the middle of a government debt crisis and our report sets out tangible proposals to cut the deficit. Businesses are right now making savings and cutting back on costs to get through the recession and there is no reason why the public sector should not have to do the same."