UK Business Optimism Rises Amid Tax Policy Changes
Deloitte's Q4 2025 survey shows UK business optimism improved to -13% net balance, up from -24% in Q3, following Rachel Reeves' tax policy announcement. Despite the rise, sentiment remains below historical averages, reflecting cautious investment intentions.
Insights:
Deloitte's latest quarterly survey reveals a notable improvement in business optimism among UK companies, with the net balance rising from -24% in Q3 2025 to -13% in Q4 2025. This shift, although still negative, marks a significant step towards recovery, driven in part by Finance Minister Rachel Reeves rachel reevesand her November budget announcement of £26 billion in tax hikes. These increases, however, are set for delayed implementation and are less focused on businesses compared to her first budget in 2024.
