Displaying items by tag: lack of confidence

UK business confidence has fallen to its lowest level since the early days of the Covid pandemic, according to the Institute of Directors (IoD). November’s economic confidence index dropped to -65, the lowest since April 2020’s record low of -69. This follows the government's autumn budget, which introduced £40 billion in tax increases, including £25 billion from higher national insurance contributions (NICs) for employers. Business leaders warn these measures will hinder private sector growth, with many firms anticipating reduced investment and workforce cuts. UK hospitality businesses have voiced concerns about closures and reduced investment due to the NIC hikes. IoD chief economist Anna Leach criticised the budget for undermining economic foundations and damaging businesses’ ability to grow. Chancellor Rachel Reeves defended the budget as necessary for stabilising public finances. The IoD hopes upcoming announcements on industrial strategy, infrastructure, and tax reform will boost economic prospects. See