Alan Vallance, CEO of ICAEW, said, "The findings show that businesses are troubled by the tax burden and increasingly reluctant to invest. As the UK prepares to host a major investment summit, and speculation mounts ahead of a difficult budget, the chancellor must give companies the certainty and stability they need."
Suren Thiru, economics director at ICAEW, noted that these figures signal a "slight reality check" for the UK economy. "Weaker expected export and investment activity, alongside fears of a painful budget, dented business confidence despite a boost from stronger domestic sales growth," he said.
The survey showed that salary growth had slowed slightly to 3.6% year-on-year, the lowest rate in over two years but still nearly double pre-pandemic levels. Wage growth is expected to decelerate further over the next 12 months.
29% of respondents cited the "tax burden" as a key concern. The fall in confidence comes as speculation mounts that the government may introduce further tax hikes to shore up public finances.
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