IoD: Two-thirds of business leaders react negatively to Budget

A snap poll of over 700 Institute of Directors members following the Chancellor’s Budget Statement has found that two-thirds (67%) of business leaders feel negatively towards the Autumn Budget and two-thirds (67%) think that it does not support the Government’s growth mission.

Separately the IoD Directors’ Economic Confidence Index, which was polled wholly before the Budget Statement and measures business leader optimism in prospects for the UK economy, fell to -52 in October 2024 from -38 in September.

Business leader confidence in their own organisations also continued its decline, falling to +2 in October, from +15 in September and +23 in August.

Investment intentions have declined further, to -15 from -6 in September, its lowest reading since June 2020 (-25).

Headcount expectations continued their downward trend and fell from +6 to -4 in October. This is the first negative reading since October 2020 (-7).

Revenue expectations fell 12 points to +15 in October from +27 in September. Their lowest point since November 2020 (+15).

Dr. Roger Barker, Director of Policy at the Institute of Directors, said:

“Even before the Chancellor had risen to deliver her Budget speech, the confidence of business leaders had hit its lowest level since December 2022. Based on the results of our snap post-Budget poll, it seems likely that sentiment will have deteriorated even further.

“By imposing significant new tax burdens on business, the government has taken a major risk with the economic recovery. The viability of its future spending plans will be compromised if growth is now snuffed out.

“The government must urgently seek to rebuild its pro-growth credentials through the delivery of a viable industrial strategy, planning reform and meaningful investment in the UK’s productive capacity. To get back on track, UK business needs to believe that the government has its back in the short as well as the longer term.”