A survey of 125 local businesses by the chamber has found the majority expect the economy to be weaker or much weaker.

Most of the companies, drawn from across the city, and a broad range of industries and sectors, predict sales, profits and employment are going to stagnate or decline in the next year.

The Australia Institute has predicted a plunge into recession for Canberra and up to 5500 job losses in the city's broader economy if planned Coalition cuts to the public service go ahead.

The chamber carried out its research as part of its recent ''crisis summit'' held to respond to news that the territory had Australia's highest rates of business failures.

Chamber of Commerce chief executive officer Andrew Blyth said the report, to be published on Tuesday, warned of ''tough times ahead'' for the local economy.

''[The] survey of some 125 local businesses provided a snapshot of views on a range of issues such as red tape, taxation, employment law, infrastructure, and business development funding, Mr Blyth said.

''The survey found that a majority of respondents believe that both the national economy (50 per cent) and ACT economy (65 per cent) will be somewhat to much weaker over the next 12 months, resulting in a drop in general business conditions, sales revenue and profitability. More funding is needed to support business development in the ACT.''

Mr Blyth said the businesses surveyed had a wish-list of reforms they wanted to see on industrial relations, taxation and the local and federal regulatory regimes.

''Respondents are wanting action on penalty rates, unfair dismissal laws, work health and safety regulations, BAS paperwork, complexity of tax laws, payroll tax, an inflexible approach by the ATO, automatic interest payment on late payment of invoices by government, a more efficient approach to government tenders, and a public service aware of the needs of small business. In addition, the ACT government is asked to provide additional funding to drive business and industry development and to attract new businesses to Canberra.''

Louise Hughes, chief executive of SRC Solutions, a Wodend health and safety consultancy, says she has seen the once thriving commercial hub in Phillip begin to empty out as more of the businesses around her close their doors.

''We're noticing that business is quietening down and it's not just here in Phillip, it's across Canberra,'' Ms Hughes said.

''Now, when you walk down Townsend Street, you notice the number of empty shopfronts. In the past, probably 18 months, there's definitely been a change.''

As part of its campaign around the federal election, the chamber will bring the ''Small Business Too Big To Ignore'' roadshow to Canberra on Tuesday. Mr Blyth said the show had been successful in sparking a ''bidding war'' among the parties for the support of the sector.