A business leader delivered his verdict on the first year of the coalition Government today - 'could do better'.

Miles Templeman, director-general of the Institute of Directors (IoD), said the Government had laid down some 'bold steps', particularly in trying to reform under-performing schools and improve skills.

He told the IoD's annual convention in London that, a year after David Cameron became Prime Minister, business believed good progress had been made in many areas.

"We certainly would give it a good mark overall even if we add the classic comment of 'could do better'.

"Getting rid of unnecessary and harmful regulation and bureaucracy is certainly an area where, despite fine words, we have yet to see real progress.

"Despite the efforts of many of us here, the Government has not fully grasped the impact on smaller companies of employment law and the way in which it discourages them from taking on new staff."

Mr Templeman said the Government had also under-performed on planning, failing to improve the speed and effectiveness of the regime at local and national level.

"This is fundamental to our economic progress, whether we are talking about major transport or energy projects, or local business and housing development. The Government seems to recognise the problem but has not yet delivered."