In the CBI's report, The Coalition Government One Year On: The business perspective, the Government is given credit for its swift and decisive action on the deficit, for its reform of business taxes, for prioritising trade and investment and its approach to enterprise and industrial policy.
However, the CBI believes government policy has been less effective in reforming the energy market, while progress on a number of policies, including moving to a low-carbon economy, increasing labour market flexibility and reforming public services has been slow.
Sir Roger Carr, newly elected CBI president and chairman of energy giant Centrica, said: "The Government must be commended for its actions to put the UK's public finances onto a firmer footing, vital for getting confidence back into the markets and bringing public borrowing down to a more sustainable level.
"But if we are to accelerate the pace of recovery, the Government must work harder in laying the right foundations for businesses to grow and business must respond accordingly. "We don't expect the Government to provide all the solutions, but it can and must set the right framework. It can do this by removing roadblocks such as overbearing regulations, providing incentives through the tax system, encouraging investment in infrastructure, facilitating when necessary, and reforming our public services.
"Get this right and business can be energised to capitalise on opportunities that only government can provide."
CBI director-general John Cridland (pictured) added: "There is much the Government should be given credit for in a busy and productive first year. Acting decisively and swiftly on the deficit has certainly laid a firm foundation for future growth.
"But now we need to see delivery on the ground. Some areas, such as energy, low-carbon policy and public service reform, are still in need of urgent action.
"We called on the Government to reform public services, which is vital to ensuring the books balance. Immediate cost savings of £6 billion may have been found, but progress on reducing duplication and waste in the public sector has been mixed. The need to re-engineer service funding and delivery has received less attention, creating a fresh imperative for action this year.
"The 30-year-old legal framework of industrial relations needs modernising and the intention to reform the employment tribunal system must be converted into practical, workable change to encourage firms to take on staff.
"Where overlapping policy objectives pull in different directions, decisions must identify and prioritise growth above all, ensuring the phrase 'Britain is open for business' is a reality not an aspiration," Cridland added.
