British Business Confidence Declines

LONDON (Reuters) – British business confidence sank to a four-month low in October ahead of the first budget plan from the country’s new government, a survey showed on Monday, echoing other signs of corporate nervousness about possible tax increases.

Lloyds (LON:LLOY) Bank's business barometer – representing the difference between the percentage of firms with positive and negative views – fell by 3 percentage points to +44%.

However, firms were more upbeat about their own prospects than those for the broader economy, which touched their lowest since March. The overall index remained above its long-term average.

> "Many businesses remain confident in their own trading prospects, and the increase in hiring intentions suggests more employers want to grow their workforce," Lloyds economist Hann-Ju Ho noted.

The survey was based on responses from 1,200 British companies with annual sales exceeding 250,000 pounds ($324,575.00) and was conducted between Oct. 1 and Oct. 15.

Two additional surveys published last week also indicated a drop in optimism among businesses.

Reeves' budget announcement on Wednesday is likely to include an array of revenue-raising changes, potentially involving higher social security payments by businesses.

($1 = 0.7702 pounds)