Slower growth in public spending and uncertainty over Gordon Brown's commitment to choice, competition and use of the private sector in public service reform have left businesses that sell services into the public sector "very concerned" about the outlook, the CBI employers' organisation said yesterday.

"We continue to be very concerned at the absence of a clear reform agenda," said Neil Bentley, the CBI's director of public services. "In the absence of clear policies, the public sector itself will sense that reform is on the wane - and all taxpayers will lose out from that."