An overwhelming majority of small businesses have said that their confidence in the Government has diminished since the 2007 Budget.

In a snap poll conducted by the Federation of Small Businesses (FSB), 93 per cent of small business owners said that their confidence in the Government had decreased since last year’s Budget, while just 7 per cent said that it had increased or remained the same.

John Wright, FSB National Chairman, said: “A series of damaging tax rises and increases in red tape in the last year have totally undermined the Government’s position with the UK’s 4.5 million-strong small business community.

“Changes to income shifting rules will force family business owners to create and maintain an unrealistic amount of paperwork on individuals' contributions to their business. It totally contradicts promises the Government has made about reducing red tape. The fiasco over capital gains tax rules and the increases in corporation tax for small companies have also undermined the Government’s credibility.”