Business confidence boosted by plans to re-open UK economy

A survey carried out by the Institute of Directors (IoD) has revealed that confidence amongst UK businesses has been boosted by plans to re-open the UK economy.

08 Apr 2021

A survey carried out by the Institute of Directors (IoD) has revealed that confidence amongst UK businesses has been boosted by plans to re-open the UK economy.

The IoD's latest confidence tracker found that business leaders' net optimism in the outlook for their organisations rose from +36 to +41. From 12 April, non-essential businesses, personal care businesses, indoor leisure facilities and gyms, amongst other firms, are permitted to re-open following the latest lockdown in England. Different rules apply in Scotland, Wales and Northern Ireland.

62% of company directors polled said the recent Budget had helped improve prospects for economic recovery.

However, the survey also found that adjusting to new trading terms with the EU is having a negative impact on business.

Commenting on the survey, Tej Parikh, Chief Economist at the IoD, said: 'The roadmap to re-open the economy, the successful vaccine rollout and the Budget have all buoyed directors' confidence in the first quarter.

'Extensions to furlough and other reliefs in the Budget have staved off fears of an impending cliff edge in support measures. As the roadmap progresses, firms can now rescale over the spring and summer months with the cushion of the government's economic package still beneath them.'

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