Business Confidence Crashes to Lowest Ever After Reeves Raid – Guido Fawkes

Business Confidence Crashes to Lowest Ever After Reeves Raid

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The closely watched Institute of Directors’ Economic Confidence Index shows business confidence in the economy has nosedived to a record-breaking -72 in July, down from an already gloomy -53 in June. That’s the worst reading since the survey began in 2016 – even lower than during the darkest days of the pandemic…

The IoD surveyed more than 600 business leaders and also found:

• Export expectations fell to -4 in July 2025, from +4 in June. The first negative reading ever recorded…
• Investment intentions fell to -27, from -10.
• Headcount expectations fell to -23, from -10.
• Cost expectations rose to +84, from +81.
• 85% of business leaders thought that government policy so far will be unsuccessful in driving up economic growth.

The IoD’s Chief Economist Anna Leach blamed Reeves’ tax raid:

“Companies continue to battle cost increases – particularly arising from the national minimum wage and NI changes – and many are frustrated that while the government has been quick to raise costs for business, it has been much slower to deliver improvements to the wider business environment. With ripple effects through the economy from tax changes and signs of consumer retrenchment, many firms report that they are struggling to plan amid a cacophony of risk.”

Meanwhile, retailers are sounding the alarm over another wave of price hikes on the horizon as Reeves gears up for an autumn tax grab. No wonder No.10 had to quietly sack their so-called ‘business champions’…