UK employers show further signs of pre-budget nerves: Lloyds

BRITISH business confidence sank to a four-month low in October ahead of the first budget plan from the country’s new government, a survey showed on Monday, echoing other signs of corporate nervousness about possible tax increases.

Lloyds Bank’s business barometer - representing the difference between the percentage of firms with positive and negative views - fell by 3 percentage points to +44 per cent.

But firms were more upbeat about their own prospects than those for the broader economy - which touched their lowest 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 suggests more employers want to grow their workforce,” Lloyds economist Hann-Ju Ho said.

The survey was based on responses from 1,200 British companies with annual sales of more than £250,000 (S$429,620) and was carried out between Oct 1 and Oct 15.

Two surveys published last week also showed a drop in optimism among businesses.

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Reeves’ budget announcement on Wednesday is likely to include an array of revenue-raising changes, including possibly higher social security payments by businesses. REUTERS