THE government will need to adopt a more business-like approach to raising revenue if tax rises are required to pay for improved public services, such as the NHS.

This is the view of the tax department at the Institute of Chartered Accountants in England & Wales.

They believe taxpayers would be more willing to pay if they knew precisely what the money was being raised for, the institute's Frank Haskew said:

"Government needs to adopt an approach to raising money which is more in line with what is expected when ordinary businesses seek finance.

"This would mean preparing detailed and viable business plans, which will be subject to intense scrutiny by potential financiers before they make any investment decisions.

"The government's report into NHS funding is a step in the right direction, but much more could be done."

Mr Haskew said successive governments had avoided accounting properly for the money raised from citizens.

"Perhaps as a result few people in this country have much faith in the way government accounts for its spending," he said.

"A more business-like approach would show clearly the linkage between money raised and the amount spent.

"Any other business looking to raise money would have to adopt such an approach, and would be held to account if the business plan did not succeed in its objectives.

"Government should look to adopt a more business-like attitude to its own finances."