Research by the Forum of Private Business (FPB) showed that many small firms believe that the current tax system favours big businesses and is need of urgent simplification.

The poll carried out by FPB found that more than two thirds of SME owners believe the tax burden placed on them is unfair, with 20% stating that the system is overly complex and needs to be made simpler, and 13% stated they want to see the tax system reformed to make Britain more competitive internationally.

Phil McCabe, FPB’s spokesman, said: “Our members believe that they are bearing an unfair tax burden because of the moderate sizes of their businesses.

“The complexity of the British tax system is not only time-consuming and frustrating, it also puts small firms at an instant disadvantage. Big companies have the expertise and resources to understand the system and minimise their tax burden. For most of our members, hiring an outside tax consultant represents a significant cost few can afford, especially in the midst of a recession.”

In response to the Pre-Budget Report (PRB), over 50% of those polled felt that it undermined both business confidence and future employment, with many also distinctly underwhelmed by the measures announced by the Chancellor.

McCabe said: “Whichever party comes to power at the general election, we would like to see them lay the foundations of a bold new tax environment where small firms are rewarded, rather than unfairly penalised, for the huge contribution they make to the British economy.”