LONDON, Oct. 30 (Xinhua) -- Confidence of British business leaders fell remarkably after the government unveiled its 2026 budget, according to a poll released Friday by the Institute of Directors (IoD).
Ahead of the budget announcement, entrepreneurs' expectations for business revenue increased from 21 in September to 28 in October, the highest level since July 2024. But the figure plummeted to 8 after the budget release, marking its lowest level since December 2025, the IoD said.
The index of investment intentions also climbed from minus 8 in September to 1 ahead of the budget announcement, hitting the highest level since August 2024, before dropping to minus 9 afterward.
A similar trend was seen in employment expectations, with the index falling from 2, its highest level since April 2025, to minus 6 after the budget announcement.
"Our post-Budget snap poll suggests the budget has done little to encourage business leaders to take their investment and recruitment plans out of mothballs," IoD Chief Economist Anna Leach said. Revenue expectations fell sharply to their weakest in 10 months, while investment and hiring intentions also deteriorated, she added.
Ahead of the budget release, business leaders made clear that they wanted the government to address the deterioration in public finances. In its 2026 budget, the government introduced a package to either freeze in real terms, reduce or cut to zero the business rates for all retail, hospitality and leisure properties in England. It also took around 70,000 more retail, hospitality and leisure businesses out of business rates by increasing the Small Business Rates Relief threshold.
However, Leach said the budget has allowed fiscal headroom to fall substantially, leaving the public finances with relatively little protection against further shocks.
"With difficult decisions on spending still ahead and limited fiscal headroom, businesses will be concerned that the risk of further tax increases has not gone away," she said.
After two years of weak business confidence, the priority remains to provide a more stable and supportive environment for firms to invest, recruit and grow, she added.
