UK Business Confidence Sinks to Lowest Since Truss Mini-Budget, Survey Shows
- Reeves’ tax hikes hit sentiment as firms plan to lift prices
- Survey warns of weak investment amid stalling economic growth
63% of UK firms are now worried about tax, the highest reading since records began in 2017.
Photographer: Chris J. Ratcliffe/BloombergThis article is for subscribers only.
UK business confidence has dropped to its lowest level since former Conservative Prime Minister Liz Truss’s disastrous mini-budget more than two years ago, according to a survey by the British Chambers of Commerce that echoes concerns over the current Labour government’s tax hikes.
A majority of firms expect prices to increase over the next three months as companies pass on higher taxes and another jump in the minimum wage, unveiled by Chancellor of the Exchequer Rachel Reeves in her October budget. Business conditions are “weak,” the lobby group added, and more firms slowed investment than accelerated it over the past three months.