As the UK housing market slows, employers' budget concerns are shaking confidence.
As the UK housing market continues to weaken, business confidence is plummeting. Two surveys published on Thursday suggest this is due to growing concerns about Finance Minister Rachel Reeves' November budget. According to data released by the Royal Institute of Chartered Surveyors (RICS), buyer demand and complete sales indicators in the housing market remained in negative territory in September, as well as July and August; The RICS House Price Stability Index – the difference between valuers expecting prices to rise and those expecting prices to fall – increased slightly to -15 in September, from -18 in August. Tarrant Parsons, head of market research and analysis at RICS, said there was a general sentiment of indecision in the market: “The continued uncertainty surrounding the measures that may be taken in the upcoming budget is likely to further reinforce the current mood of caution.” Reeves is expected to raise taxes in the budget on November 26 to meet public finance recovery targets. News in the British media suggests that the Minister of Finance is planning to collect more tax revenue from the housing market. On the other hand, in another survey, the Institute of Chartered Accountants in England and Wales (ICAEW) said business confidence fell to a three-year low between July and September. According to the survey, 60% of companies see the growing tax burden as a growing problem; This is the highest rate ever. Suren Thiru, the institute's economics director, said many employers were negatively affected by Reeves' decision to increase social security payments in his first budget last year.
