UK Business Sentiment Lowest Since Late 2022: BCC Survey

(RTTNews) - UK business sentiment deteriorated the most since the aftermath of the mini budget in late 2022, as firms became more concerned about taxation following the Chancellor's autumn statement, the latest quarterly survey from the British Chambers of Commerce showed on Monday.

The Quarterly Economic Survey showed that only 49 percent of firms expect their turnover to increase over the next twelve months, down from 56 percent in the third quarter. The balance was the lowest since former Prime Minister Liz Truss' mini budget announcement in 2022.

A fifth of businesses expect turnover to worsen compared to 15 percent in the third quarter and 30 percent expect no change.

Further, the survey showed that only 40 percent expects profits to increase over the coming year, down from 48 percent in the preceding period.

Following the Budget, concern about taxation was cited by 63 percent of responding firms, up from 48 percent in the third quarter. This was the highest level of tax concern since 2017, when the BCC started asking this question.

Concern about inflation was broadly unchanged with the balance at 47 percent in the fourth quarter. The survey showed that firms plan to increase their prices in the coming three months. More than 50 percent of firms said they will raise prices, up from 39 percent in the prior period.

Regarding investment plans, only 20 percent said they ramped up investment over the last quarter, which was moderately below 23 percent in the third quarter.

"The worrying reverberations of the Budget are clear to see in our survey data," Shevaun Haviland, director general of the BCC said.

"Without urgent Government action to ease the pain on businesses, the challenging economic landscape will get worse before it gets better," said Haviland.