Optimism amongst business leaders 'approaching Covid lows'

02 Dec 2024

A survey carried out by the Institute of Directors (IoD) has found that business leader confidence in the UK economy fell from -52 in October to -65 in November 2024, bringing optimism close to its record low in April 2020.

Confidence amongst business leaders in their own organisations fell from +2 in October to -7 in November, the IoD survey showed. Revenue expectations fell to +4 in November from +15 in October.

The survey also revealed that 83% of respondents expect their employer National Insurance bills to increase. As a consequence, 50% expect to lessen wage increases; 44% expect prices to rise; 43% will reduce employment; and 25% will seek to absorb the costs in lower margins.

Anna Leach, Chief Economist at the IoD, 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 and is approaching the lows reached at the onset of the Covid pandemic.

'Far from fixing the foundations, the Budget has undermined them, damaging the private sector's ability to invest in their businesses and their workforces.'