LONDON (Reuters) – British business confidence fell to the lowest level in four months in October, ahead of the first budget plan of the country’s new government, a survey showed on Monday, highlighting other signs of business nervousness over potential reflected tax increases.
Lloyds (LON:) Bank’s business barometer – which shows the difference between the percentage of companies with a positive and a negative opinion – fell by 3 percentage points to +44%.
But companies were more optimistic about their own prospects than those for the broader economy – which reached the lowest level since March – and the overall index remained above its long-term average.
“Many businesses remain confident in their own trading prospects, and the increase in hiring intentions signals that more and more employers are looking to grow their workforces,” said Lloyds economist Hann-Ju Ho.
The survey was based on responses from 1,200 British companies with an annual turnover of more than 250,000 pounds ($324,575.00) and was conducted between October 1 and 15.
Two surveys published last week also showed a drop in optimism among businesses.
Reeves’ budget announcement on Wednesday will likely include a series of revenue-boosting changes, including potentially higher Social Security benefits from corporations.
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