The British Chambers of Commerce (BCC) has called for a major change to the UK state pension system, urging Chancellor John Healey to replace the current triple lock with a system linked solely to inflation.

The business organisation says reform could reduce pressure on government finances ahead of the Chancellor's first Budget, while allowing some savings to be redirected towards youth employment and economic growth.

Under the existing triple lock, state pensions increase each year by whichever is highest among average earnings growth, inflation or 2.5%. The BCC argues that continuing the system could place additional pressure on public spending.

The proposal arrives as businesses await the government's economic plans and face continued uncertainty over borrowing costs, energy prices and inflation. Changes to pension policy could become an important part of the wider debate over how Britain balances spending with economic investment.

For UK businesses, the discussion is significant because government spending decisions can affect tax policy, labour-market investment and economic confidence.