Half of UK firms fear another jobs blow at this week's Budget, according to a poll that also found seven in 10 businesses describing their mood as cautious or anxious.
The findings come from a state-of-the-nation temperature check ahead of Chancellor John Healey's first financial statement on Wednesday, carried out by accountancy and professional services group DJH.
Businesses Pause Decisions
The report covered the period between September 10 and October 20 and included responses from 82 companies. Nearly half of those polled have paused at least one decision in the lead-up to the Budget, with the majority halting investment and more than 20% ceasing recruitment plans.
More than half of the companies quizzed have low confidence in Mr Healey to boost the economy, posing an immediate challenge to turning around business sentiment.
Leaders Call for Clarity
DJH Chief Executive Scott Heath said: "Owners have every right to be cautious, with global conflicts, rising energy costs at home and talk of even more tax increases creating an 'uncertain' landscape."
He added: "It's safe to say from the figures that businesses do not need further uncertainty."
Mr Heath said: "Our Autumn Budget Business Confidence Report was designed to take the pulse of companies across the UK, highlighting their hopes and fears and how decisions made by the Government now will influence activity in the short term."
Impact of Caution
He said: "The message is clear - management teams are fearing more pain is coming their way, and their caution is holding back key actions that could accelerate growth."
Mr Heath noted: "When one third of businesses put investment or hiring on hold, the effect is felt well beyond their own balance sheets. For many, the most valuable thing the Budget can offer is not a particular measure but clarity, and the stability that a good number asked for in their own words."
He added: "If the leaks are to be believed, bosses will be very relieved to see there will be no increases to capital gains tax. This was a major concern for 31% of respondents, and they will be buoyed by comments from the Chancellor about 'wanting to prioritise wealth creation without it being constantly subject to penalties.'"
The Treasury said: "We are on the side of businesses. The Chancellor is giving the high street more breathing space, cutting business rates by 20% for pubs, social clubs and live music venues. This is alongside £4.3billion to limit bill rises, funded by a higher tax rate for big online warehouses, and capping corporation tax."
