Businesses throughout all regions and industry sectors are suffering under the Government's tax regime, according to accountancy firm Baker Tilly.
When asked: 'Has the tax burden gone up or down since Labour came to power?', 59% of the sector including IT workers said that it had risen.
Clive Parritt, chairman at Baker Tilly, said: "It's time this Government woke up and realised that it is destroying the economy."
He is also annoyed and frustrated about the IR35 proposals due to be imposed in April. "On the one hand we have the DTI and the Government telling us how we should all be more flexible, work from home and freelance and so forth, and on the other we have the Treasury and the Inland Revenue trying to force everyone in boxes by making them PAYE."
Parritt thinks that any honest trader would be prepared to register with the Revenue if required, and he is appalled at the bureaucratic, Draconian attitude of the Government.
"Small businesses will be crippled. It's all right when this kind of legislation is introduced within bigger businesses because they have money and the personnel to research and deal with its implementation. It's destroying our entrepreneurial flair."
Unless the Government is prepared to change some of its tax plans in the next budget, the UK economy will suffer, according to Parritt. "The business burden has skyrocketed under New Labour and, unless Gordon Brown makes a radical policy U-turn in his March address, British business will continue to be crushed by spiraling taxes."