The CBI has warned that businesses have little faith in plans to improve public sector efficiency.

Both Labour and the Conservatives have put plans to cut government "waste" at the centre of their political programme.

Ministers and the shadow Cabinet alike have pledged to use efficiency gains to boost frontline services or fund other key policies.

But a survey from the business organisation, released on Tuesday, found that just four per cent of firms think the government target of £21.5bn of efficiency gains will be met.

In contrast, a massive 86 per cent thought the target would be missed.

CBI director general Sir Digby Jones said businesses depend on good public services but warned that "our experience on the ground leaves much to be desired".

"Business expansion is being impeded by poor transport infrastructure, recruitment is being hampered by skills shortages and employees have to wait too long for hospital treatment," he said.

"These are problems that have been building up for decades so it's hardly surprising business has little confidence in the reform process.

"Throwing money at a problem never works on its own. Abolishing one post only to create another somewhere else may be politically expedient but is not what business understands as efficiency savings.

"We want to see the efficiency review work, but there's been a tendency to fudge figures and make bold claims with little detail to back them up.

"Businesses have to be efficient to survive. We look to the public sector to drive through productivity gains that justify the 'once-in-a-generation' pay increases.

"Companies won't be taken in by government claims that lack transparency."