Nearly an eighth (13%) of companies think a new government should focus on making the UK tax system more competitive, according to one study.
The British Chambers of Commerce's (BCC) latest monthly business survey also revealed that an increase in national insurance contributions (NICs) would be the most damaging tax rise that could be inflicted upon them.
David Frost, director-general of the BCC, stated that raising NICs would be "counter-productive" and would result in fewer jobs and less revenue in the long term.
He would prefer to see a 1% increase in VAT and a series of targeted spending cuts introduced, as he noted that this option would be less detrimental to the industry.
The BCC recently backed the decision of the Bank of England Monetary Policy Committee not to increase quantitative easing - saying everything had to be done to avoid the chances of a double-dip recession occurring.
BCC wants the tax system 'reformed'
