IBEC is warning the government that Ireland risks being outmaneuvered in business by the UK, if the tax system is not reformed.

The organisation says the coalition needs to end discrimination of the self-employed, introduce meaningful capital gains tax relief for entrepreneurs and enhance investment schemes.

It says Ireland needs to adapt and improve its competitiveness if we are to remain an attractive destination for business.

The group are launching their pre-budget submission today.

In the wake of efforts in the recent UK budget to make the British economy more attractive, IBEC is calling for a cut to the marginal tax rate in Budget 2016, as well as reforms to the funding of childcare.

Fergal O'Brien is the head of policy and chief economist at IBEC.

"Right now we're at a crisis point in terms of the lack of infrastructure (and) investment in the economy" he told Newstalk Breakfast.

"We're spending less than 2%, we need to be spending a minimum of 4%".

"This is the third lowest infrastructure spend in Europe and we've the fastest growing population".

"The pinch point are out there - infrastructure, transport housing - they're all there".

"If we don't address them now, we will choke off the growth over the coming years," he added.

He also told Newstalk Breakfast we are currently loosing the battle for corporations.