Concerns amongst firms over potential tax rises and other measures which may feature in the autumn Budget appear to have shaken business confidence in the region and dented hiring intentions. A business barometer from Lloyds Bank Commercial Banking showed that business confidence in the East of England fell by 30 points during September to 22 per cent, its lowest level for 18 months and down from 52 pc in August.
Kirsty Sadler, regional director for the East of England, Lloyds Bank Commercial Banking, said: “While this fall in confidence may come as a shock during harvest season, with agriculture continuing to be a key regional industry, we may be seeing the impact of reports that the upcoming Budget is set to be challenging.” Companies in the East reported lower confidence in both their own business prospects, down 21 points at 39 pc, and their optimism in the economy, down 38 points to 6pc. Meanwhile, a net balance of just 10 pc of businesses in the region expect to increase staff levels over the next year, down 17 points on August. Kirsty Sadler added: “But looking ahead, it’s encouraging to see that investing in their teams, including measures like improving training, is still a priority for businesses in the coming months.”
Nationally, overall UK business confidence in September dipped slightly and there was a marginal increase in firms' own trading prospects. Hann-Ju Ho, senior economist at the bank, said: “The more mixed picture for economic optimism points to some businesses maintaining a degree of caution. While we still expect economic expansion, it may occur at a slower rate than the first half of 2024.”
