UK Business Confidence Drops to Pre-Pandemic Lows Amid Tax Hikes

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Economy News

UK Economy,Labour Party,Tax Hikes

Business confidence in the UK has hit a two-year low following Labour's tax-hiking budget, according to a new survey by the Institute of Directors (IOD). The gloomy picture suggests the UK economy may face a slowdown, with businesses planning to cut back on investment.

Optimism about the UK economy has hit rock bottom, reaching levels last seen during the start of the COVID pandemic. This plummet in business confidence follows the announcement of a tax-hiking budget by Labour and a series of pessimistic forecasts about the nation's finances. A survey by the Institute of Directors (IOD) revealed that business confidence in November was at its lowest level since April 2020, just weeks after the first lockdown was announced.

With more than 600 top bosses responding, the survey attributed their pessimism mainly to the Chancellor's recent tax hikes. The IOD warns that the UK economy is at risk of stalling, as businesses are planning to cut back on investment. Shadow business secretary Andrew Griffith criticized the government’s handling, stating that the survey shows a catastrophic loss of business confidence. Despite criticism, Chancellor Rachel Reeves defended the budget, arguing that the Government needed to raise money to stabilize public finances and repair public services

 

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