Talks to avert the US fiscal cliff gathered momentum as a senior ally of President Barack Obama yesterday called on business leaders to urge Republicans to make concessions to stave off the looming budget crisis threatening the global economy.

Two days after Mr Obama’s re-election, Senator Chuck Schumer, a leading Democratic spokesman on fiscal issues, said he welcomed a signal from John Boehner, the Republican speak- er of the House of Representatives, that his party was willing to compromise to avert the fiscal cliff. But he added that the Republican leadership would need the “business community” to help bring “his conference to a good position on revenues”.

The appeal came as Washington pivoted from the bruising election campaign to focusing on averting the tax rises and spending cuts due to take effect in January, which could tip the US economy into recession.