By The Telegraph (Business) | Created at 2024-10-01 06:21:42 | Updated at 2024-10-01 09:38:40
3 hours ago
Bosses are the most pessimistic about Britain’s economy since they were picking up the pieces after the bond market turmoil of Liz Truss’s premiership, a survey has shown.
Ahead of the Budget later this month, confidence among business chiefs in September was at its weakest since December 2022, according to the IoD Directors’ Economic Confidence Index.
The index dropped from minus 12 to minus 38 between August and September, while business investment intentions registered their lowest level since September 2020 amid the uncertainty over the Chancellor’s tax raising plans.
Bosses are also worried about the costs of the Government’s plans to shore up workers’ rights.
Anna Leach, chief economist at the Institute of Directors, said: “Business confidence and investment expectations both took a further and larger dive in September.
“IoD members cite ongoing concerns over likely tax increases, the cost of workers’ rights, international competitiveness, broader cost pressures and the general outlook for UK economic growth.
“There are a number of policy announcements forthcoming which could help foster a more supportive environment for growth and investment, and underpin an improvement in business confidence.
“In the next few weeks we expect to see more detail on industrial strategy, the business tax roadmap and a likely update to the fiscal rules to better recognise the contribution of public sector investment to the UK’s asset base. These all have the potential to create a more steady environment for business decision-makers in the UK.”
Read the latest updates below.
