Overview

• The ICAEW business confidence index has fallen to -3, the lowest level since late 2022, reflecting heightened economic uncertainty.
• Record-high tax concerns, including increased employer national insurance contributions, are cited as a major challenge by 56% of surveyed businesses.
• US tariffs announced by President Trump are adding significant uncertainty and the potential for higher operational costs for UK firms.
• Domestic sales growth is expected to decline to levels not seen since the third quarter of 2022, as businesses brace for weaker economic conditions.
• Firms are limiting price increases but cutting back on recruitment and staff training investments, raising long-term productivity concerns.