Business confidence in the UK has climbed to its highest level since before last autumn’s budget, buoyed by President Trump’s decision to delay the full implementation of his reciprocal tariff regime, according to the latest survey from the Institute of Directors (IoD).
The organisation’s economic confidence index rose from -58 in March to -51 in April, reaching its highest point since September 2024. The findings are based on a poll of 648 business leaders conducted between 11 and 29 April.
The IoD said business leaders had begun increasing recruitment and investment plans for the second consecutive month, with expectations around rising costs also beginning to ease.
The data suggests that uncertainty surrounding US trade policy — particularly Trump’s aggressive new tariff strategy — has weighed more heavily on sentiment than the domestic tax rises introduced in Chancellor Rachel Reeves’s October budget.
From April 6, national insurance contributions for employers rose from 13.8% to 15%, alongside a lower threshold for payments and a 6.7% rise in the national minimum wage. These changes triggered a sharp drop in business sentiment last autumn, a trend worsened earlier this year by Trump’s unexpectedly steep tariff plan, announced on 2 April and now delayed by 90 days.
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