Optimism amongst the UK’s business leaders has fallen to the lowest point since the height of the pandemic, according to the Institute of Directors (IoD).
The IoD’s survey found that business leader confidence in the UK economy fell from -52 in October to -65 in November 2024, bringing optimism close to its record low in April 2020.
UK economic conditions were the most significant concern for the IoD’s members with 73% citing it.
Employment tax has replaced skills and/or labour shortages as the second biggest concern, with double the number of respondents citing it compared to August’s survey.
Anna Leach, Chief Economist at the IoD, said:
‘This is a sobering set of results. As businesses continue to absorb the consequences of the Budget for their business plans, confidence has continued to plummet and is approaching the lows reached at the onset of the Covid pandemic.
‘Far from fixing the foundations, the Budget has undermined them, damaging the private sector’s ability to invest in their businesses and their workforces.
‘The clash between government intentions to address inactivity and the sharpness of the increase in employment costs is jarring. Likewise welcome attempts to improve the environment for investment in the UK sit at palpable odds with a significant hit to profits which will undermine private sector investment.
‘There’s now a significant risk of growth stalling across the private sector due to the extent of the reset required by business.’
Internet link: IoD website