Labour's Policy Uncertainty Damages Business Confidence

A report by the Institute of Directors (IoD) has warned that policy uncertainty and constant tax speculation under the Labour government are damaging UK business confidence.

The IoD poll of over 500 bosses found that confidence remained subdued, with a 'modest deterioration' in July compared to the previous month.

IoD chief economist Anna Leach said: 'Looking towards the autumn, there's a risk that cost pressures rise further in light of renewed conflict in the Middle East.'

The EY report warns that a prolonged closure of the Strait of Hormuz could tip the UK economy into recession and send inflation soaring above 6 per cent.