Candy Richards, who represents the Federation of Small Businesses in East Anglia, said the tax burden on businesses and their customers is now at a "record high", while confidence has hit an "all-time low".

Candy Richards represents the Federation of Small Businesses in East Anglia (Image: Supplied)

"The government cannot continue the status quo - if it does, there will be far fewer small businesses this time next year," she warned.

“The huge hikes in the cost of employment are hikes many small firms simply cannot afford."

Ahead of the Budget, it was confirmed that the minimum wage will increase again from April.

The minimum wage for over-21s will go up by 50p an hour to £12.71 - a 4.1pc rise.

Meanwhile, 18 to 20-year-olds will see the biggest increase - up 8.5pc to £10.85 per hour.

Teenagers aged 16 and 17 will now receive £8 an hour, rising 6pc.

The chancellor Rachel Reeves (Image: James Manning/PA Wire)

"Businesses will be left with a stark choice – increase prices or cut jobs," she said.

"Both of these scenarios have direct consequences for customers and workers and will mean that we remain stuck in this........

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