Britain’s businesses have sounded the alarm to Chancellor Rachel Reeves ahead of her November Budget, warning smaller firms cannot shoulder the burden of further tax rises.

The British Chambers of Commerce (BCC) has warned against imposing additional tax burdens on enterprises following the £40billion increase implemented in last year’s Budget.

The concern comes amid growing anxiety among businesses over Britain’s financial state.

With business confidence still low following last year’s fiscal measures – the BCC’s message is clear: companies cannot withstand further tax rises without dire consequences for Britain’s economy.

BCC’s director-general Shevaun Haviland said: “Last year’s budget took the wind from their sails, and they have been struggling to find momentum ever since.”

She described businesses as feeling “drained”, while anticipating “further tax demands to be laid at their feet” when the Chancellor delivers her statement on November 26.

The inability to plan strategically has left firms in a state of uncertainty, hampering investment and growth.

“The Chancellor must seize this moment and use her budget to deliver a pro-growth agenda that can restore optimism and belief among business leaders,” Ms Haviland said.

“This year’s budget will be a make-or-break moment for many firms.”

The BCC’s submission to the Treasury includes more than 60 proposals aimed at boosting the economy.

Central to its recommendations are calls for reforming business rates and scrapping the windfall levy on oil and gas companies.

Prominent businesses figures such as Allan Leighton, the boss of Asda, have previously urged Ms Reeves to stop “taxing everything in some way, shape or form”, and focus instead on investing in Britain to drive growth.

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The chamber’s plan also advocates major infrastructure investment, streamlined customs processes, and targeted action to tackle skills shortages holding back productivity.

These proposals align with the Prime Minister’s commitment that Labour will approve 150 major infrastructure projects before the next general election.

The Government has already signalled support for expanding both Heathrow Airport and Gatwick Airport, fulfilling one of the BCC’s key infrastructure priorities.

A Government spokesman said Ms Reeves would “strike the right balance” between securing resources for public services and supporting economic growth.

The Chancellor has pledged to protect “working people” from tax increases, but this leaves scope for rises elsewhere.

Potential adjustments could target businesses, capital gains or inheritance tax as ministers seek to address what officials describe as a multi-billion pound deficit in the public finances.

Rachel Reeves has also been urged to avoid “half-baked fixes” in next month’s Budget.

The Institute for Fiscal Studies (IFS) said tens of billions could be raised through reform, but warned against economically harmful options like a wealth tax.

The IFS called for broader reform to align tax rates across income types, describing stamp duty as “awful” and council tax as “regressive.”

Rachel Reeves faces a rumoured £20billion shortfall and has pledged not to borrow for day-to-day spending, or let debt rise as a share of national income.

The Treasury said the Budget would balance funding public services with supporting growth and investment.

It suggests reforms to property tax and capital gains tax as “good places to start”.