Disaster for Rachel Reeves as confidence in economy hits 'rock bottom'

Business confidence in the UK economy has reached a historic low, with directors and business leaders expressing a grim outlook ahead of Chancellor Rachel Reeves's upcoming Budget. A survey by the Institute of Directors revealed that optimism in the economy stood at a dismal minus 73 in October, the lowest reading since the poll began nine years ago. Expectations for hiring new staff also remained negative. This lack of confidence is attributed to policy uncertainty and speculation about potential tax hikes in the Budget, which is scheduled for November 26. Many companies are delaying major recruitment and investment decisions in a "wait-and-see" approach, particularly as rumors suggest the Chancellor may introduce a range of increases, including on income tax and pensions, to address a significant shortfall in public finances. The private sector is already feeling the impact of previous fiscal decisions, with businesses still recovering from the increased employer National Insurance contributions. Critics argue that the Chancellor has failed to deliver on promises of a pro-business environment, instead imposing substantial job taxes and lacking a clear plan to control spending. This Budget is seen as crucial for Reeves, who is expected to raise taxes to bridge a projected deficit exceeding £20 billion. In response, a Treasury spokesman stated that the government is pro-business and has achieved the fastest economic growth in the G7 this year, along with successful trade deals and a cap o... download the app to read more