The UK faces more belt-tightening and “real austerity” to achieve sustainable economic growth, according to a business leader.

John Longworth, director general of the British Chambers of Commerce, said Chancellor George Osborne had “bought time” on restoring growth.

He told the BCC’s annual conference: “Contrary to popular opinion, we haven’t really seen austerity in the way it has been applied to many countries around the eurozone, such as Greece, Spain, Portugal and Ireland in particular.

“The next stage of debt reduction will require more belt-tightening, possibly even real austerity in some quarters.”

Mr Longworth said “deep, lasting and profound structural reform” was needed to achieve growth.

“I have said it before and I cannot repeat it enough – achieving sustainable great growth should be and must be the number one priority of any government, and our political class needs to be more economically literate and business-orientated.”

Business Secretary Vince Cable urged firms to export more goods to help the UK achieve a sustainable economic recovery.

He told the conference: “If we don’t broaden our horizons, we consign ourselves to the certain fate of becoming a marginal, bit-part player in the global economy.

“Yet, despite our best efforts – and those of our partners, like the BCC – there are up to 150,000 UK firms with the potential to export who are failing to exploit the available opportunities. This situation cannot persist.”