If left with no option but to see a rise in taxes, business leaders - which could include those in possession of business insurance - would prefer to see VAT rates increase.
This is according to a study carried out by KPMG, in which around two-thirds of chief executives (61 per cent) state that if next week's Budget was to include any form of tax increase, upping VAT rates would be preferable, although this could still affect companies' ability to meet business insurance and other expenses.
One of out five respondents think more taxes to target heavy polluters would be best, while ten per cent believe that an increase in corporation tax would be the most favourable option for their business.
"VAT is seen as the lesser of the tax evils because it is an indirect tax paid by consumers. So to a certain extent, it's a wash through for companies operating in a predominantly business-to-business environment," head of national markets for KPMG Malcolm Edge states.
However, he claims that the retail and financial services sectors could "be hit very hard" by an increase in VAT, a move which could well affect such businesses' ability to meet other costs like retail insurance.
This, Mr Edge claims, is because such companies tend to operate more in the business-to-consumer markets.
At present VAT in the UK stands at 17.5 per cent, a figure which KPMG notes is the fourth lowest rate in the European Union.
