The coalition’s Emergency Budget has been labelled “tough but fair” by more than nine in 10 UK firms surveyed by senior and executive-level financial recruitment specialist Reed Finance.

The research also shows that 62% felt the measures outlined by George Osborne on 22 June will have a positive effect on their business.

Tim Vye, operations director of Reed Finance, says: “Seven out of 10 businesses believe that the rise in VAT will have a negative effect on their business and close to half of businesses (48%) feel that proposed changes in employers’ NI will also have a detrimental effect.

“While the majority of businesses (84%) welcome the government’s plans to reduce non-priority spending, only four in 10 are confident that the cuts will be achieved.

“One of the headlines of the budget was, of course, the freeze on public sector pay. We believe this could see an increase in worker migration from the public to private sector, as they seek higher wages to match the increased cost of living.”