Blog: UK business investment rocked by inflation and Brexit By Proactive Investors – Investing.com UK

UK business investment rocked by inflation and Brexit © Reuters. UK business investment rocked by inflation and Brexit 

The Institute of Directors’ economic confidence index for July, measuring business leaders’ confidence to invest in the UK, has barely improved since June.

The latest economic confidence score registered among business leaders is -54, a slight improvement from -60 in June, but still worse than -45 in April.

At the last survey, businesses were “pessimistic about the prospects for the UK economy”, with worries about the rate of UK inflation cited as the most frequent concern, followed by Brexit and the UK’s future relationship with the European Union.

The IOD said that, according to a poll of its members, the single change that would cause them to invest more in the UK market would be “stronger prospects for the macroeconomy”.

According to the Office for National Statistics’ latest business insights, more than a quarter of businesses reported “input price inflation” as their main concern for trading in August 2022, while one in five were worried about energy prices.

The IOD recently published recommendations on how to increase business investment in the UK, which involved a series of measures aimed at tackling skills shortages and extending the 130% capital investment super-deduction beyond April 2023.

In the report, IOD said that the “policy framework for investment needs refreshing to take account of the priorities of the post-pandemic recovery”.

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