In July the latest survey by the Institute of Directors (IoD) found that business confidence rating was positive. But August saw a huge dip just over a month after Keir Starmer’s Labour won the election when positivity levels were at the highest in three years.

Overall confidence levels were down to -12 in August, from a three-year high of +7 in July.

The threat of higher taxes was one of the key factors resulting in negative impressions of the economy. Business taxes rose to third place (41%, up from 33% in May) in the IoD Economic Confidence Index, replacing compliance with government regulation (37%).