Home Money Business confidence plummets to its lowest level of the year

Business confidence plummets to its lowest level of the year

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Under pressure: Rachel Reeves was dealt a fresh blow as more bosses revealed plans to cut jobs and raise prices in 2025 as business confidence plummeted.

The Chancellor was dealt a fresh blow as more employers revealed plans to cut jobs and raise prices in 2025 as business confidence plummeted.

A survey by Lloyds Bank found optimism has eroded to end 2024 at the lowest level recorded all year.

And the Confederation of British Industry today warned that the economy is heading for the “worst of all worlds”.

According to Lloyds, business confidence fell two percentage points to 39 per cent in December after a gradual decline since Labor won the election.

Under pressure: Rachel Reeves was dealt a fresh blow as more bosses revealed plans to cut jobs and raise prices in 2025 as business confidence plummeted.

And 11 percent of businesses said they expect to be less busy next year, compared to a reading of 8 percent the previous month.

The drop led to an eight-point overall drop in business prospects to 47 percent, the lowest result since June. More than half of the 1,200 companies surveyed said they would hire more workers in 2025, but 19 percent said they would cut jobs.

And 64 percent of companies plan to raise prices next year.

However, there was a slight uptick in optimism about the broader economy for the first time since August.

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