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Thirty-five business leaders Among those which signed the letter include Asda chairman Andy Bond, moneysupermarket.com chairman Gerald Corbett, Alliance Boots chairman Stefano Pessina, Next chief executive Simon Wolfson and Ocado CEO Tim Steiner.

Also signed by Marks & Spencer chairman Sir Stuart Rose and BT chief executive Ian Livingston, the 35 business leaders said there was "no reason to believe" that Osborne's plan to eliminate the £109bn structural deficit within four years will undermine the recovery.

It also said Labour's alternative plan of spreading plans to reduce the deficit over more than one Parliament would be a "mistake" which could leave the UK £100bn deeper in debt bt 2014/15.

It added that "the private sector should be more than capable of generating additional jobs to replace those lost in the public sector, and the redeployment of people to more productive activities will improve economic performance, so generating more employment opportunities".

Osborne is set to reveal his comprehensive spending review on Wednesday where he will spell out plans for £83bn of spending cuts. It is expected to feature painful cuts in areas such as prisons, policing and social housing. Reports suggest that the Ministry of Justice could lose one-third of its £9bn budget.

The full list of signatories to today's business letter in the Daily Telegraph was:

Will Adderley, CEO, Dunelm Group

Robert Bensoussan, chairman, LK Bennett

Andy Bond, chairman, Asda

Ian Cheshire, chief executive, Kingfisher

Gerald Corbett, chairman, SSL International, moneysupermarket.com, Britvic

Peter Cullum, executive chairman, Towergate

Tej Dhillon, chairman & CEO, Dhillon Group

Philip Dilley, chairman, Arup

Charles Dunstone, chairman, Carphone Warehouse Group plc; Chairman, TalkTalk Telecom Group

Warren East, CEO, ARM Holdings

Gordon Frazer, managing director, Microsoft UK

Sir Christopher Gent, chairman, GlaxoSmithKline

Ben Gordon, chief executive, Mothercare

Anthony Habgood, chairman, Whitbread; Chairman, Reed Elsevier

Aidan Heavey, chief executive, Tullow Oil

Neil Johnson, chairman, UMECO

Nick Leslau, chairman, Prestbury Group

Ian Livingston, CEO, BT Group

Ruby McGregor-Smith, CEO, MITIE Group

Rick Medlock, CFO, Inmarsat and Non Exec Director of lovefilms.com, The Betting Group

John Nelson, chairman, Hammerson

Stefano Pessina, executive chairman, Alliance Boots

Nick Prest, chairman, AVEVA

Nick Robertson, CEO, ASOS

Sir Stuart Rose, chairman, Marks & Spencer

Tim Steiner, CEO, Ocado

Andrew Sukawaty, chairman and CEO, Inmarsat

Michael Turner, executive chairman, Fuller, Smith & Turner

Moni Varma, chairman, Veetee

Paul Walker, chief executive, Sage

Paul Walsh, chief executive, Diageo

Robert Walters, CEO, Robert Walters

Joseph Wan, chief executive, Harvey Nichols

Bob Wigley, chairman, Expansys, Stonehaven Associates LLP, Yell Group

Simon Wolfson, chief executive, Next