The CBI has urged the Government not to wait until the Budget in March to act on coronavirus business support.

And in a letter to Chancellor Rishi Sunak, the organisation said this is the right time for reform of the business rates system.

That reform tops a list of recommendations for the Budget to build a bridge to a sustained economic recovery which includes extending the furlough scheme by two months to the end of June with targeted support after the scheme ends.

Other recommendations include lengthening repayment periods for VAT deferrals to at least June and allowing bills for the current quarter to be extended for 12 months, as well as extending the business rates holiday for at least three months.

CBI director general Tony Danker said: "The Government's support from the very start of this crisis has protected many jobs and livelihoods, and progress on the vaccine rollout brings real cause for optimism.

"But almost a year of disrupted demand and extensive restrictions to company operations is taking its toll.

"The Government must once again stand shoulder-to-shoulder with businesses to underwrite support for the duration, helping viable enterprises to last the course."

He continued: "Many tough decisions for business owners on jobs, or even whether to carry on, will be made in the next few weeks.

"If the Government plans to continue its support then I urge them to take action before the Budget which is still more than six weeks away.

"The Government has done so much to support UK business through this crisis, we don't want to let slip all the hard work from 2020 with hope on the horizon."

The CBI has also made recommendations for the Budget designed to look beyond the coronavirus crisis to the reopening of the economy.

Recommendations include using the net-zero transition to drive the economic recovery by committing to the delivery of seven more gigafactories by 204 and reviewing fuel duty, as well as introducing R&D tax credit for capital expenditure and delivering an Invest to Grow scheme.

As well as incentivising greater business investment in retraining and upskilling, the CBI also wants the Budget to deliver that comprehensive reform of the business rates system, freezing the Universal Business Rate (for the remainder of the current revaluation period, lowering it at future revaluations and introducing new relief for businesses that invest in energy efficiency.

CBI chief economist Rain Newton-Smith said: "There is clear light at the end of the tunnel and reasons to be optimistic.

"The Government should use the upcoming Budget to speed ahead to low carbon, to accelerate investment in low-carbon infrastructure - through fundamental business rates reform to promote energy efficiency - and the innovative technologies that will smooth the path to achieving net-zero by 2050.

"Top of that list must be a fundamental review of our outdated business rates system, to, drive essential investment in energy efficiency, support our struggling high-streets and level-up business investment across the UK."