LONDON, Oct 8 Reuters British finance minister Rachel Reeves needs to strike a positive tone at her first budget on Oct. 30 in order to give businesses the confidence to invest, the Confederation of British Industry said on Tuesday.

After winning a large parliament majority on July 4, Reeves and Prime Minister Keir Starmer said the former Conservative government had left a dire economic legacy, including a 22billionpound 29 billion hole in the public finances, which they said were in the worst state since World War Two.

Business and consumer sentiment weakened last month, partly out of concern about higher taxes, and the CBI said it was important the Reeves struck the right tone on Oct. 30.

We recognise the chancellor is walking a fine line with limited fiscal headroom. While we cannot risk the economic stability that is the bedrock of growth, we must be ambitious in our vision with government laying the foundations for a prosperous future, CBI Chief Executive Rain NewtonSmith said.

Reeves has said taxes are likely to have to go up by more than Labour had planned before the election. But with Labour saying it will stick to its pledge not to raise headline rates of income tax, national insurance or valueadded tax, some businesses are concerned that they will be targeted.

The CBI said Labour should set out a fiveyear roadmap for business taxation, including which areas were likely to be reviewed, similar to the approach taken by the Conservativeled coalition…