Confederation of British Industry (CBI) president, Sir Mike Rake will say it is time to reform the EU at the business group's annual dinner in London.

His call comes as the new Government presses ahead with its promised in-out referendum.

"In the months to come, our country will have to make its own choice," Sir Mike will say.

"A choice between openness and isolation. Between shaping the future or retreating into the past.

"The question is not whether the UK would survive outside the EU, but whether it would thrive. No one has yet set out a credible alternative future to EU membership.

"The current alternatives are not realistic options - little or no influence and the obligation to comply with EU principles whilst still paying most of the costs.

"Reform will not happen overnight, but by working with our allies on an ambitious, yet achievable, agenda, we can make it a reality.

"So we support the Prime Minister's drive for a more competitive EU, and the new Government can count on business's support to make this happen.

"Already, we are seeing a growing consensus, from Government, business and Europe's leaders.

"We have seen some encouraging signs of progress from the European Commission."