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UK Business Confidence Plummets to Record Low Amid Tax Concerns

10/1/2025

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Story summary
  • UK business confidence fell to a record -74 in September, Institute of Directors (IoD) reports.
  • The prior low was -72 in July amid trade tensions.
  • Shadow Chancellor Mel Stride says Labour tax increases erode confidence.
  • Anna Leach of the IoD warns higher taxes dampen investment and growth.
  • Economists expect inflation to stay high, potentially shaping the Chancellor's budget plans.