Concerning developments in the UK business sector, where confidence is declining ahead of the upcoming Autumn Budget, have been highlighted in a recent research by the British Chambers of Commerce (BCC). About 63 per cent of businesses felt the Chanceller’s autumn statement was concerning, up from 48 per cent in Q3 of the organization’s “Quarterly Economic Survey,” which surveyed over 4,800 businesses in the UK.
In addition, business confidence has declined, as 49 per cent of respondents now expect a rise in turnover over the next 12 months, compared to 56 per cent previously. Retail and hospitality had the lowest confidence levels, according to the BCC, with 39 per cent and 42 per cent, respectively. This is the greatest level of tax anxiety since the BCC began asking this question in 2017, with 63 per cent of respondents sharing concerns about taxes, up from 48 per cent in Q3. At 47 per cent, concern over inflation was unchanged from the previous quarter.
Firms’ expectations to raise prices in the following three months increased from 39 per cent to 55 per cent in response to the budget. Forty-three per cent more stated that they anticipated prices remaining unchanged. Seventy-five per cent of enterprises mentioned labour expenses as the primary cost pressure.
