The British prime minister yesterday pledged to pursue a tough campaign against over-regulation and admitted that some European Union working time rules were "over the top".

Mr Blair told delegates at the conference of the Confederation of British Industry, the employers' lobby, that he shared their concerns and promised to make sure new rules were properly considered.

It was the first time a prime minister had spoken to the annual CBI gathering. Mr Blair took questions for 15 minutes and said he was proud to be taking part in an event that would have been impossible for a Labour prime minister 20 years ago.

CBI leaders welcomed Mr Blair's commitment to an entrepreneurial and innovative society - as well as his assurance that he was unashamedly pro-business.

Sir Clive Thompson, CBI president, also welcomed Mr Blair's call for more EU economic flexibility.