With under six weeks until the employer national insurance contributions (NICs) rise comes in on 6 April, 82% of companies said the tax hike has forced them to rethink their plans for the next 12 months.

Most businesses were also dissatisfied with the policy making process with criticism of the lack of government cost analysis of the impact of the changes on business, which are expected to raise an eye-watering £25bn in tax a year.

The latest survey of SMEs by the British Chambers of Commerce in partnership with accountancy firm AAB found that six in 10 businesses were already reviewing recruitment and expected prices to rise.