Chancellor Alistair Darling has a last chance to redeem himself in tomorrow's Budget, Birmingham Chamber of Commerce and Industry has warned.
But to do so he has to produce a substantial tax shift in favour of boosting business growth.
Charlotte Ritchie, BCCI head of policy, said Mr Darling needed to understand that championing enterprise and understanding the importance of small businesses to the UK economy was essential to maintaining the UK's competitiveness.
She charged: "The Chancellor has a real opportunity this week to redeem himself with businesses and to ensure that his policies live up to the promised pro-enterprise agenda.
"Successive Budget announcements, not least those on capital gains tax, have seriously damaged the relationship with the business community. While the rhetoric is pro-business, the small print is often the opposite. We hope that the Chancellor will use this Budget to restore the faith of our local businesses.
"The proposal to introduce a single CGT rate of 18 per cent from April provides a major disincentive to business growth and deprives SMEs of an important motivation to attract investment. The real losers under the announcements were business owners selling their businesses and employees who have invested in share option schemes.
"The Government must now provide further assistance for high growth business owners' tax liabilities on CGT.
"The planned increases in the small companies' corporation tax rate that is paid by firms with less than £300,000 of pretax profit should also be scrapped at this Budget, as it is likely to negatively affect investment, particularly in the current credit squeeze."
Ms Ritchie added: "We are urging the Government to scrap the proposed 2p fuel duty increase scheduled for April 1, as fuel costs are substantially cutting into businesses' margins at a time of acute economic pressure.
"We hope that he will also reconsider the changes to empty property rate relief. Removing tax relief on empty buildings is likely to seriously impede regeneration in many areas. Having to pay business rates on empty properties will add to the pressures on businesses that are already suffering a loss of revenue through rental income. The manner in which the Government has pushed through this proposal has caught many businesses by surprise."
Coventry and Warwickshire Chamber of Commerce was equally scathing.
It too is urging the Chancellor to ditch a number of plans to increase taxation such as small companies' corporation tax and capital gains tax, while abandoning the planned fuel duty rise.
Louise Bennett, chief executive, said: "The spotlight is firmly on Alistair Darling from the business community, which has lost a great deal of faith in the Government recently. Companies have been hurt by a number of tax raising measures which have been specifically targeted at business and there has been a distinct lack of communication with the business community before they were announced.
"This is the time to be supporting business and a time to be encouraging investment - not for the Government to be pinching every penny it can, particularly from SMEs.
"There is also talk of implementing supplementary business rates which I see as an additional local tax on business, which is not agreed by business and where the money is spent is not decided by business. This is another real concern."
The Chamber of Commerce also wants to see greater thought given to encouraging enterprise and entrepreneurialism.
"Obstacles should not be put in the way of people wanting to set up in business and those already running their own company - the burden of red tape should be removed wherever possible," said Ms Bennett.