The idea of splitting up RBS into a "good bank" and "bad bank" is outdated, unhelpful and a distraction, the CBI boss has told ITV News.
The CBI conference opened with a friendly warning to the Prime Minister on the dangers of isolating the UK in Europe.
The Scottish CBI is "not convinced of the business and economic case" for independence, it will announce today.
Business group the CBI has said the UK is starting to see "the right kind of growth" as it lifted it predictions for expansion in the economy this year from 2.4% to 2.6%.
It said business investment would make a positive contribution this year, rising at the fastest rates since 2007, while increasing exports would help net trade play a small role in supporting the recovery.
The upgraded forecast for 2014 reflects a stronger than expected performance at the end of last year. However, the CBI has downgraded growth expectations for next year from 2.6% to 2.5%.
The CBI expects that unemployment reached the Bank of England's 7% "forward guidance" threshold in the final quarter of last year - for which labour market figures have not yet been published.
The guidance pledges that policy makers will not begin to consider a rise in interest rates until the threshold has been reached.
But the CBI predicts that despite having fallen to this level, continued low inflation and spare capacity in the economy mean that interest rates will not go up until the third quarter of 2015.
David Cameron says he aims to get "every penny for value for money" from the investment in the controversial HS2 rail project.
Speaking at the annual CBI conference, Mr Cameron insisted the scheme would "unite the country and drive economic growth".
The Prime Minister said the leader of the HS2 scheme, Sir David Higgins, would "drive every extra bit of cost out of the project" so it comes in under the estimated £50 billion budget that has been set.
The Prime Minister went on to claim that critics of the project were "putting the country's future at risk" and called for a "concerted consensus" across business and politics to get behind the project.
Boris Johnson has expressed frustration at the drawing out of the HS2 project timescale.
The Mayor of London wrote in The Telegraph that China built its own high-speed rail in just two years.
Meanwhile, he said, Labour are delaying the project further by "shamelessly courting the sceptic vote".
Nigel Farage has hit out at a report published by the Confederation of British Industry that says the UK is "overwhelmingly" better off in the European Union.
The UKIP leader said: "There is this deeply flawed view that leaving the EU would somehow mean a sudden end to trading with Europe.
"The CBI does not consider the more realistic option that if we left the single market and freed ourselves from its red tape and politicised agenda we would still be able to continue to trade strongly with Europe on our own terms.
"Instead the CBI are proponents of this skewed view that Britain can renegotiate terms with the EU to create a more streamlined relationship.
"That would have to involve treaty change but the European Commission President Jose Manuel Barroso has ruled that out.
"Without treaty change there can be no significant renegotiation at all."
A Labour government would set up an independent infrastructure commission to end delays in major infrastructure projects such as HS2, according to Ed Balls.
The shadow chancellor is expected to tell today's Confederation of British Industry conference that an infrastructure commission would "end dither and delay in infrastructure planning and build the consensus on infrastructure that we need to invest for the long-term".
Ed Balls will express his commitment to HS2 today, but will reiterate that Labour's support for the project is "not at any cost".
He is expected to tell the annual Confederation of British Industry conference today: "Labour supports HS2 and the idea of a new North-South rail link because of capacity constraints on the existing rail network. But our support for it is not at any cost.
"The Labour Party cannot - and will not - give the government a blank cheque."
He is expected to say: "Britain is in a global race for jobs and wealth. Our infrastructure is decades out of date and we urgently need to invest and build.
The Prime Minister has tasked the new boss of HS2 with cutting costs, amid criticism from Labour that the project has a "black cheque".
The Prime Minister accused delayers of "betraying" those in the north who are most likely to benefit from the high-speed rail project.
"Those who want to delay or obstruct HS2 show a lack of vision. They are playing politics with Britain's prosperity. They are betraying everyone north of Watford. And they want to condemn Britain to the slow lane.
"We can either tell our grandchildren we made big, long-term decisions to build a better country... Or we can tell them we dithered for decades while the world raced ahead.
A UK business leader has called for continued membership of the EU.
John Cridland, Director General of the Confederation of British Industry, said:
"We have looked beyond the political rhetoric to examine the pros and cons of EU membership and British business is unequivocal - the Single Market is fundamental to our future.
"We are better off in a reformed EU than outside with no influence. Each year, membership is worth £3,000 to every household in this country.
"But the EU isn't perfect and there is a growing unease about the creeping extension of EU authority. Europe has to become more open, competitive and outward-looking if we are to grow and create opportunities and jobs for all our citizens.
"Contrary to popular myth, the UK is influential in the corridors of Brussels and will still be as long as we play our cards right. The Single Market is a great British success story and the best way for us to remain a leader on the world stage is from within the EU."
David Cameron has tasked the new boss of HS2 to find ways of cutting costs.
Sir David Higgins' first task in the job will be to report on lowering costs and maximising benefits, David Cameron will announce today.
Speaking at the annual Confederation of British Industry conference in London, the Prime Minister will claim dithering over HS2 will condemn Britain to the slow lane.
The scheme needs cross-party approval to continue but Labour's shadow chancellor threw the party's support into doubt earlier this year.
Ed Balls raised concerns over the spiraling costs, insisting he would not sign a "blank cheque".
Staying in the European Union is "overwhelmingly" in Britain's interest, although reforms are urgently needed, business leaders have said.
The Confederation of British Industry has highlighted research showing that EU membership was worth between £62 billion and £78 billion, around 4-5% of the UK's total economic output.
But the business group, which holds its national conference in London today, called for a number of reforms, including removing barriers to e-commerce, becoming more outward-looking and re-focusing the work of EU commissioners.
The CBI also proposed a moratorium on legislation which could be made at national level, and a permanent UK opt-out from the Working Time Directive.