Business owners are now cautiously optimistic about their companies' growth prospects, following July's reading which indicated business confidence at the second-lowest level on record, according to a monthly survey by a leading industry group.
The Institute of Directors (IOD) has reported that business leaders' confidence in their own organisations has now moved into positive territory, after dipping to a net reading of minus nine in July, as reported by .
The IoD's key indicator for firms' confidence in the 海角视频 economy also saw a slight increase, reaching a net reading of minus 61, following last month's figure which marked its lowest level since data collection began in 2016.
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However, businesses continue to express concerns over high employment taxes and other costs impacting their operations.
Company heads are eagerly awaiting this year's Autumn Budget, hoping that Rachel Reeves will refrain from imposing damaging tax increases on businesses, which could squeeze profit margins.
The Chancellor is anticipated to raise at least £20bn in taxes to address a deficit in the public purse, with the possibility of raising up to £50bn not being dismissed.
Reports suggest that Reeves is considering additional taxes on homeowners and pension pots, with the government likely to exercise caution when it comes to increasing costs on businesses, following the 海角视频's significant downturn in employment due to a rise in national insurance contributions.
The Treasury could still increase taxes that undermine business confidence, including reducing the £90,000 threshold at which businesses are required to charge customers for VAT.
Taxes and regulations to hamper growth
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The IoD's chief economist Anna Leach said it was "little surprise" to see taxes at the top of businesses' list of concerns following last year's Autumn Budget.
"As we head towards another challenging Budget, the government should seize the chance to unlock growth through smarter deregulation," Leach said.
"Leaders tell us the biggest barriers they face are in employment and trade. Here lies the tension in the government's growth agenda: while trade policy has focused on reducing frictions and opening opportunities, its employment policies risk moving in the opposite direction. ".
"Meanwhile ongoing tax rumours further damage confidence. We urge the government to unleash a more coherent and consistent economic plan for the 海角视频, focussed on easing the cost of doing business."
The regulations which were most likely to curtail growth were rules on employment and the workplace, according to the survey.
However, the government's Employment Rights Bill, which is progressing through parliament, is set to significantly strengthen workplace rules, with a prohibition on some zero hour contracts and restrictions on firing and re-hiring to be introduced. Retail and hospitality companies have criticised the changes, with senior executives arguing that the workers' rights package will deteriorate living standards and become "deeply damaging" to Labour's aspirations for stimulating growth.