Blow for Reeves as business confidence at near record low after Budget
Why business confidence is nearing a record low after the Budget
- Business confidence has fallen to a near record low following the recent Budget, according to a warning from the Institute of Directors (IoD).
- An IoD survey indicated that industry leaders expect revenue to decline and companies to invest less, despite announcements such as an above-inflation rise in the minimum wage.
- Anna Leach, IoD chief economist, described the deterioration in business expectations as 'worrying' and urged Rachel Reeves to do more to improve prospects for economic growth.
- The Office for Budget Responsibility (OBR) has forecast UK growth at just 1.5 per cent this year and cut predictions for subsequent years, noting the Budget had no 'material effect' on growth but raised £26bn in taxes.
- Sir Keir Starmer is expected to call for the government to go 'further and faster' on growth, proposing reforms to deregulate nuclear power plant construction and other major infrastructure schemes.