UK businesses basically froze up before the Budget dropped because everyone was freaking out about potential tax hikes. The Confederation of British Industry found that private sector confidence tanked to negative 27 points, and companies put investment and hiring decisions on ice while waiting to see what Chancellor Rachel Reeves would announce. Output fell at the fastest rate since the pandemic started, and pretty much every industry got hit.
The Treasury kept leaking anonymous warnings about a massive 30 billion pound hole in public finances, which turned out to be exaggerated after the Office for Budget Responsibility checked the numbers. Business leaders are still spooked even after the Budget came out, with over half planning to scale back hiring because of higher payroll costs from National Insurance changes.
The housing market took a hit from all the uncertainty, with mortgage approvals dropping to their lowest level in months as people waited to see if income taxes would change.
The Treasury kept leaking anonymous warnings about a massive 30 billion pound hole in public finances, which turned out to be exaggerated after the Office for Budget Responsibility checked the numbers. Business leaders are still spooked even after the Budget came out, with over half planning to scale back hiring because of higher payroll costs from National Insurance changes.
The housing market took a hit from all the uncertainty, with mortgage approvals dropping to their lowest level in months as people waited to see if income taxes would change.
