PRE-BUDGET LIFT FOR RACHEL REEVES-UK Business confidence rises

Confidence among UK businesses has grown despite anxiety about the state of the economy, in a rare slice of positive news for the chancellor, Rachel Reeves, in the run up to her autumn budget

An August poll of UK companies by Lloyds Bank showed that improved sentiment among manufacturers and retailers helped push overall optimism within UK plc up by two percentage points, with 54% of companies now feeling confident in the current environment.

It marked the fourth consecutive monthly increase in overall business sentiment, according to the Lloyds business barometer, driven by a growing number of businesses – roughly 63% – feeling strong about their own trading prospects. On that measurement alone, confidence reached its highest level since 2014.

About half of all businesses now expect to hire more staff in the coming year despite growing costs. The survey found 38% of companies are expecting to have to raise wages by 3% or more, with the vast majority – 83% – saying that higher employment-related costs would have a limited impact on hiring plans.