UK Business Confidence Hits Pandemic Low

Business confidence in the UK has plummeted to its lowest level since the early months of the COVID-19 pandemic, with the Institute of Directors' Economic Confidence Index falling to -65 in November from -52 in October. This decline is attributed to concerns over a £25 billion increase in national insurance contributions announced in Chancellor Rachel Reeves' recent budget, which many business leaders believe will hinder investment and increase operational costs. Nearly half of the surveyed leaders expect to reduce pay raises due to these tax hikes, and a significant portion anticipates job cuts and price increases. The budget has been criticized for undermining the foundations of the economy, with calls from the IoD for the government to improve the growth narrative and mitigate negative impacts. Shadow business secretary Andrew Griffith labeled the situation a 'catastrophic loss of business confidence under this government.' The survey highlights a broader trend of economic pessimism, signaling potential challenges for future growth and employment.