An Oxford biotech chief has called for the Government to do more for his industry in this month's Budget.

Paul Drayson, chairman of the BioIndustry Association, said the Government could help to keep the UK's biotech sector as a world leader by bringing in tax changes in key areas -- share options and capital gains tax.

He said tax breaks were essential if the industry was to continue to invest, innovate, and recruit the best people.

Biotech companies are usually loss-making in their early years and share options are used to lure staff.

Dr Drayson, chairman and chief executive of PowderJect Pharmaceuticals, said: "The Government has made a lot of headway but this is no time to be complacent. There are concrete measures which the Government can introduce in the Budget which will really help to move the industry forward.

"These measures will help us to continue to make a significant contribution to the UK economy and to develop new treatments for diseases that not only destroy quality of life but also cost the NHS millions of pounds in long-term care."

The BIA wants the Government to consider:

Increasing the £30,000 limit on share options to £100,000 and cutting the waiting period between exercise of options to one year.

Extending the capital gains business asset taper relief on shares in a qualifying trading company to five years following flotation.

Mr Drayson said he welcomed the Government's announcement last week that it would accept one of the BIA suggestions -- extending research and development tax credit to larger research-based companies.

Meanwhile, companies are delaying mergers and acquisitions so as to make the most of tax changes due to be introduced in April, according to a finance expert.