UK business confidence reaches highest level since 2015 — Lloyds Bank

According to data from Lloyds Bank, business confidence in the UK has risen to its highest level in nine years, driven by growing optimism among British companies about the country’s economic prospects.

The bank’s confidence indicator increased by one point to 51%. Since the introduction of global import tariffs by the United States in April, the metric has climbed by 11 points. Many of these US restrictions have since been suspended, Reuters reports.

Hann-Ju Ho, a senior economist at Lloyds Bank, noted that UK employers are highly optimistic about their business prospects. 60% of the firms surveyed by the financial institution anticipate expanding their workforce in 2026. Additionally, expectations for wage growth have strengthened, marking a two-month upward trend.

However, last week, Andrew Bailey, Governor of the Bank of England, expressed concerns about a potential slowdown in the labor market. This is partly attributed to the tax increase for employers implemented in April.