Business confidence has collapsed to its lowest level on record as firms face a 'cacophony of risk' under Labour, bosses of industry warned last night.
In a report that raises fresh questions over Rachel Reeves' handling of the economy, the Institute of Directors said optimism has evaporated in the face of higher taxes, rising employment costs and red tape.
Bosses called on the Chancellor to 'urgently quash rumours of further tax rises for business this autumn' to help restore shattered confidence – now lower than during Covid lockdowns.
Critics argue the £25 billion increase in employer national insurance (NI) contributions and higher minimum wage meted out in last October's Budget have hammered the wider economy – snuffing out growth, costing jobs and driving up prices.
While the economy is slowing, inflation is the highest in the G7 at 3.6 per cent and unemployment has surged to a four-year high of 4.7 per cent.
