(It's) rather like a villain taking someone's wallet, extracting the notes, and returning the wallet with some small change still inside

Michael Howard Shadow Chancellor

Mr Brown's pledge on business tax follows an indication last month by the prime minister that taxes will have to rise to pay for improvements in the National Health Service.

Unions have already been angered by claims that the government is planning to renege on pledges to improving workers' rights.

And the Conservatives accused the government of "piling new burdens on to business" and eroding their competitiveness.

"After this record over five years, to suggest that Gordon Brown is now going to lower business taxes in the Budget is rather like a villain taking someone's wallet, extracting the notes, and returning the wallet with some small change still inside," shadow chancellor Michael Howard said.

The chancellor now believes reducing entrepreneurs' tax burden is a priority alongside health, education and transport spending.

Public-private commitment

In the Times, he writes that the Budget on 17 April will forge a consensus for a "radical pro-enterprise and pro-competition agenda".

Gordon Brown: "Tough choices"

"To those who say money would be better spent in other ways, my answer is this: we will make decisions to do what is right in health and public services, matching money to reform and outcomes," he says.

He says he is examining ways for the Budget to further cut corporate tax paid by small businesses.

He also promises to set aside millions of pounds "in the face of all our other priorities and the tough choices we have to make" to cut capital gains tax to 20% on business assets held for a year, and to 10% after two years.

Mr Brown says encouraging and democratising wealth creation is an "essential driver" behind a higher standard of living and the "surest guarantee of better public services for all".

Tough year

He adds he is committed to public private partnerships, drawing on private sector managerial expertise and "showing that we have moved beyond the sterile conflict that posed private against public".

Mr Brown's words were welcomed by Anthony Goldstone, president of the British Chambers of Commerce and of Greater Manchester Learning and Skills Council.

"After what has been a tough year of trading conditions, business will be encouraged by the chancellor's remarks that enterprise will be at the heart of next month's Budget," he said.

But Mr Goldstone stressed that it was also important that the government delivered on public sector reform.