The Institute of Directors says business optimisim has collapsed to its lowest point since the pandemic.
The effects of Rachel Reeves budget and global uncertainty has left business leaders in a low mood.
Investment plans and employment intentions were the weakest since May 2020 last month, while a gauge of business leaders’ optimism sank to its lowest since April 2020 at -65, down from -52 in October.
IoD Chief Economist Anna Leach 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.
“Far from fixing the foundations, the Budget has undermined them, damaging the private sector’s ability to invest in their businesses and their workforces.”
Reeves announced £40 billion pounds of tax rises at the budget, including a £25 billion pound increase in employers’ NI.
Recent news about EV sales falling and the pressure on car manufacturers has indicated some of the wider concerns businesses are facing.
With a raft of infrastructure changes planned for March the IoD believes there is the opportunity to turn the tide.
Ms Leach added: “The flurry of announcements expected in the Spring – spanning industrial strategy, infrastructure and tax reform – will be an important opportunity to reposition the growth narrative more positively.”
The IoD survey took place between Nov. 15 and Nov. 27 and was based on 601 responses.
