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British businesses are freezing investment and recruitment plans ahead of next month's Budget, amid fears the Chancellor will target the private sector to address the nation's fiscal gap for the second consecutive year.

A recent survey of small and medium-sized enterprises reveals that more than four in five (84 per cent) business leaders are anxious about potential tax increases affecting their profitability, despite the private sector bearing the brunt of last year's unprecedented £40bn tax increase.

In a further indication of executive apprehension, three quarters of those surveyed said they were postponing significant decisions regarding recruitment and investment until after the Chancellor's statement on 26 November, as reported by .

"These figures are a flashing red light on the º£½ÇÊÓƵ's economic dashboard," said Andreas Adamides, the head of entrepreneurs' group Helm, which commissioned the study.

"When more than 80 per cent of business leaders are bracing for tax hikes and three-quarters have hit pause on investment, it's clear the engine of growth is idling when it should be accelerating.

"The Chancellor must remember that confidence is the oxygen of enterprise - without it, ambition suffocates."

The results will intensify pressure on the Chancellor's choice to hold the year's primary fiscal event in late November, several weeks later than the traditional timing of late October or early November. The later date could provide Rachel Reeves with a fiscal boon due to lower-than-anticipated inflation, resulting in significantly reduced borrowing costs for the government compared to a month ago.

However, industry leaders and economists have cautioned that this will also encroach on businesses' "golden quarter", the crucial three-month period from October to December when retailers and other companies often experience their peak trading period.