Rachel Reeves has been warned that more businesses will be pushed over the edge if she launches a fresh tax raid in next month’s Budget.

Shevaun Haviland, director general of the British Chambers of Commerce (BCC), urged the Chancellor not to hammer businesses again. She warned that jobs, investment and growth were at risk from the anticipated £30bn of tax increases.

Ms Haviland, whose industry group represents 50,000 companies, said: “More taxes would risk sinking businesses that are struggling to survive and would stop the growth of others in their tracks.”

She added: “Businesses already struggling would find themselves having to shell out more and more money to the Government – leaving less to spend on their workers or on investing back into the economy.”

The Chancellor last year shocked businesses with a surprise £25bn raid on employers’ National Insurance contributions.

Economists have since warned that Ms Reeves could be forced to come back for more due to gloomy growth forecasts and stubbornly high borrowing costs, which have thrown the public finances off track.

The BCC’s surveys indicate that a quarter of companies have cut back investment plans since the National Insurance tax rise came into force in April while a third have made, or are considering, redundancies.

Ms Haviland said: “With investment low and recruitment challenging, the message is clear: no further tax rises on business.”

Sir Mel Stride, the shadow chancellor, said: “Rachel Reeves has already increased taxes by £40bn, including a £25bn tax on jobs. She doesn’t need to raise taxes yet again – she needs to control spending, especially the spiralling welfare bill.

“Businesses need certainty but all they have from this Labour government is constant speculation about damaging tax rises.”

Retail chiefs have previously urged the Chancellor to avoid piling further pressure on Britain’s high streets in her upcoming Budget, with the sector still reeling from the earlier tax increases.

Helen Dickinson, chief executive of the British Retail Consortium (BRC), said: “The future of many large anchor stores and thousands of jobs remains in jeopardy while the Treasury keeps the risk of a new business rates surtax on the table.

“By exempting these shops when the Budget announcements are made, the Chancellor can reduce the inflationary pressures hammering businesses and households alike.”

Rising inflation is already putting more pressure on household finances, according to the BRC.

Shop sales in September were up 2.3pc compared to the same month of 2024, below the 3.8pc rate of price rises. This indicates that consumers are paying more to take home fewer goods.

Meanwhile, spending on debit and credit cards fell 0.7pc on the year, according to Barclays, as households cut back their spending on groceries, DIY and electronics.

A Treasury spokesman said: “The Chancellor has been clear that at Budget she will strike the right balance between making sure that we have enough money to fund our public services whilst also ensuring that we can bring growth and investment to businesses.”

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