Hangover from Reeves’ dismal Budget leaves enterprise confidence caught at all-time low

Business confidence is stuck at near record lows in the wake of the Budget after the Chancellor failed to boost growth in the economy, a survey of bosses revealed last night.

The poll for the Institute of Directors (IoD) also found companies’ jobs plans fell sharply, while sales and investment expectations were at the lowest level since the pandemic.

IoD chief economist Anna Leach said there had been a ‘worrying’ deterioration in bosses’ economic expectations, adding: ‘The Budget has weakened sentiment not just about the UK economy, but about firms’ ability to grow in it.’ 

Businesses have already been battered by Labour’s £25billion raid on employer National Insurance in last year’s Budget.

Confidence plummeted again in recent months, hitting a record low of minus 74 in September amid speculation and uncertainty ahead of this year’s Budget.

The IoD said it then crept up to just minus 73 in October and minus 72 in a snap poll after the Budget.

Four out of five business leaders viewed the Budget negatively, so it was ‘no surprise that confidence remains close to record lows afterwards’, Ms Leach said. She added: ‘Work remains to be done to lift the UK’s growth prospects.’

Business confidence is stuck at near record lows in the wake of the Budget after the Chancellor (pictured) failed to boost growth in the economy

Meanwhile, a forecast from the accountancy firm KPMG today predicts economic growth will slow from 1.4 per cent this year to 1 per cent in 2026 thanks to a worsening jobs market and subdued consumer confidence.

Unemployment is expected to hit 5.2 per cent, wage growth is set to slow and household spending is likely to be hit.

Asda boss Allan Leighton said on Friday: ‘The country is stuck in reverse.’

A poll for the consultancy WPI Strategy revealed most bosses will hire fewer staff as a result of policies in the Budget.