Following the impact of last year’s NI rise, many small businesses (59%) fear the impact of further rises here.

The prospect of increases to VAT (50%), income tax (50%) and fuel duty (37%) were also top concerns, with 37% also fearing the business impact on any further taxes on diesel or petrol vehicles.

The number of small business owners predicting growth also fell for the fourth consecutive quarter to a new five-year low (25%), with every industry sector showing a reduction in the number of enterprises predicting growth in the countdown to Christmas since the start of the year.

The number of small business owners that fear complete contraction or collapse in the three months to Christmas stood at 23%, the highest since Q1 2021.

According to Novuna, the fears over the Autumn Budget are a reflection of fragile confidence from business owners of whom many feel they wont be able to absorb the financial burden on costs from taxes.

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Jo Morris, head of insight at Novuna Business Finance 9pictured above), commented on the findings: The latest findings are not about double-guessing what will or won’t be in the Autumn Budget, but the findings tell us a lot about how small business owners see the world and what may help or hinder their growth.

“The last four quarters have seen consecutive falls in small business confidence, and this is perhaps the long-tail of the cost-of-living crisis, such as rising supplier costs, the burden of energy and fuel costs and mounting staff costs.

“What our new research tells us is small businesses cannot keep absorbing market pressures to their cost-line and cashflow.

“We are all committed to growth in this country, but small businesses need a ‘Budget for Business’, one that eases the tax burden, helps with the operating costs and makes hiring people more affordable. Help here will do a lot to power growth into 2026 and beyond.”