A majority of British businesses back the emergency Budget, according to figures released by the British Chambers of Commerce (BCC), with 64 per cent supporting the balance between spending cuts and tax rises.
The BCC also revealed in its latest Monthly Business Survey, however, that two-thirds of respondents believe the cuts will hurt their profitability. Half said they would suffer from the fall in demand, while 30 per cent thought they would be hit through the direct loss of public-sector contracts.
David Frost, director general of the BCC, said businesses understood that the next few years would be "acutely painful" as the austerity measures took hold. He added: "However, deficit reduction alone is not enough to secure recovery. There will now need to be a relentless focus on ensuring business is able to deliver growth, create jobs, and drive a lasting recovery."