The government must unveil a "convincing" plan to slash the UK's record budget deficit when it delivers its final budget before the general election, business leaders have urged.

Richard Lambert, director general of business lobby group, the CBI, has written to Alistair Darling, calling on the chancellor to balance public finances by 2015-16, two years earlier than planned.

An unconvincing budget will do nothing to dampen speculation that Britain is the next European economy on the list for a credit rating downgrade.

Britain borrowed more than it repaid in January, the first deficit for that month since records began in 1993, as tax receipts fell in the wake of the economic downturn. January is usually a good month for debt repayment due to deadlines for tax payments.

"The government must act now to set out a convincing, credible pathway for balancing the books," wrote Lambert. "Investors are clearly jittery about sovereign debt, but are prepared to give the UK the benefit of the doubt until after the election."

"Significant concerns remain about the UK's fiscal situation. A detailed plan for delivering fiscal consolidation remains the key to addressing concerns about the UK's public finances, and to supporting the macroeconomic recovery."

Messages are mixed at the moment though. Last month, a group of more than 60 economists wrote to the FT, warning against premature action to cut Britain's record deficit. But 20 of their peers said current policy lacked urgency and risked a lack of confidence in financial markets.

Lambert wants the government to provide more detail on spending plans for its numerous departments and believes budget targets can be achieved by reform within the public sector and spending cuts.

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