Business Confidence Among UK Manufacturers Falls Sharply

Business confidence among UK manufacturers has plummeted to its lowest level since the COVID-19 pandemic, according to the Make UK/BDO Manufacturing Outlook Q4 survey. Confidence dropped from 6.8 to 5.8, with forecasts indicating a contraction of -0.2% this year and only 0.7% growth in 2025, attributed to escalating costs and new employment reforms. Approximately 70% of manufacturers reported cost increases of up to 20%, with nearly 8% seeing rises of up to 50%. The recent Budget proposals, including a £25 billion hike in employer social security contributions, are anticipated to exacerbate these cost pressures. Make UK has called on the government for reforms to alleviate the financial burden on businesses, warning that the current situation may lead to significant cutbacks. A government spokesperson acknowledged the challenges but emphasized their commitment to fostering growth and improvement across the country.