Business confidence in the UK has hit its lowest point in over two years, according to a survey from the Institute of Chartered Accountants in England and Wales (ICAEW). The first few months of the year have been particularly tough for businesses across the country due to concerns over possible tax increases and Donald Trump’s ongoing trade war. The survey of 1,000 chartered accountants revealed a significant drop in confidence, influenced by worries about record-high taxes, rising costs, and decreased expectations for sales. The index score for business confidence fell to -3, its lowest level since the fourth quarter of 2022, down from 0.2 in the last quarter of 2024. A score of 100 indicates complete confidence among respondents, while a score of -100 represents a lack of confidence. The economic troubles could also be intensified by increases in employer national insurance contributions and the potential impact of Trump’s global trade disputes, which could reduce UK GDP growth close to zero next year. Despite some business surveys pointing to layoffs at the highest rate since the 2008 financial crisis, official data recently showed a more robust economy with 0.5% growth in February. The latest job market figures and inflation data are to be released soon. Financial markets are suggesting this economic downturn could lead to an interest rate cut by the Bank of England in its next policy meeting, despite inflation remaining above its target.

Source: https://www.theguardian.com/business/2025/apr/15/uk-business-confidence-falls-to-lowest-level-in-over-two-years-survey-shows