VAT rose 2.5% to 20% on 4 January, 12 months after the tax returned to the standard 17.5% from its temporary 15% standing.

The Federation of Small Businesses (FSB) has warned more than 70% of small companies will experience a negative impact due to the rise.

Of 1,600 businesses interviewed, more than half expected to increase prices as a result of the rise with 45% predicting a fall in turnover.

However, some UK printers have said that although the VAT-registered nature of many customers would not affect sales, consumer confidence elsewhere could be damaged.

Peter Wise, director at Minuteman Press Bristol, said: "The impact for us will be on the non-VAT-registered clients (mostly private individuals), which will be small.

"Of greater concern is the consumer market, which purchases products and services from our clients and will be hit by the VAT rise."

Stuart Mason, managing director at commercial printer The Ink Shop, said: "We’ll be paying more for goods, but claiming that VAT back. The issue is more confidence in the marketplace.

"If the increase has a negative effect on consumer spending then this will ultimately be felt by us all. It should never have gone to 15% in the first place."

To curtail the damage the increase could have on SMEs, the FSB has called on the government to review the increase when the deficit has been significantly reduced and to return VAT to 17.5%.

However, high-street print franchise Printing.com said that the VAT rise would actually aid growth at many of the company’s outlets, with a large number of small firms requiring altered, up-to-date promotional material.

Tony Rafferty, chief executive of Printing.com, said: "Lots of smaller businesses have needed to change their pricing details so that has aided growth in that area.

"However, the need for these firms to spend extra money and time in a period when they are trying to catalyse fiscal growth is something I can empathise with."