British business confidence has fallen to its lowest level in two years

A survey conducted by the British Chambers of Commerce showed British business confidence fell to its lowest level in two years due to rising costs and taxes.

British business confidence has fallen to its lowest level since former Prime Minister Liz Truss’s “mini-budget” in September 2022, after unexpectedly large tax rises in the new Labor government’s £40 billion ($50 billion) budget released on October 30. .

The survey was conducted on 4,800 British private sector companies, and showed that confidence in sales over the next twelve months is the lowest since late 2022, in light of the pressures resulting from rising costs and taxes.

The tax increases on October 30 are the largest amount in any budget since 1993. The bulk of this amount will come through increased Social Security fees paid by employers.

The British Chambers of Commerce said, “55 percent of companies plan to raise prices compared to 39 percent in the previous quarter, and 24 percent intend to reduce investments compared to 18 percent previously. The Chamber intends to issue survey data on employment expectations on January 14.”

The British economy recorded strong growth in the first half of 2024 while recovering from a slight recession in late 2023, before returning to recession again in the third quarter of last year.

The Bank of England expects zero growth in the fourth quarter of 2024 and 1.5 percent growth in 2025.