According to Lloyds, UK employers continue to display pre-budget anxiety

British business confidence fell to its lowest level in four months in October, as indicated by a survey released on Monday, reflecting growing apprehension among companies regarding potential tax hikes ahead of the new government's first budget plan.

Lloyds Bank's business barometer, which measures the difference between the proportion of firms with positive and negative outlooks, dropped by 3 percentage points to +44%.

While businesses expressed concerns about the overall economy—hitting their lowest sentiment since March—they remained optimistic about their own prospects, and the overall index still surpassed its long-term average. Lloyds economist Hann-Ju Ho noted, “Many businesses are confident in their trading outlooks, and the rise in hiring intentions indicates that more employers are looking to expand their workforce.”

The survey gathered insights from 1,200 British companies with annual revenues exceeding £250,000 ($324,575) and was conducted between October 1 and October 15.

Two additional surveys released last week also highlighted a decline in business optimism. Reeves' budget announcement scheduled for Wednesday is expected to include various revenue-generating measures, potentially raising social security contributions for businesses.

Paraphrasing text from "Reuters" all rights reserved by the original author.