British business confidence sank to a four-month low in October ahead of the first budget plan from the country’s new government, a survey showed on Monday, echoing other signs of corporate nervousness about possible tax increases.

Lloyds Bank’s business barometer-representing the difference between the percentage of firms with positive and negative views – fell by 3 percentage points to +44 per cent.

But firms were more upbeat about their own prospects than those for the broader economy – which touched their lowest since March – and the overall index remained above its long-term average.

“Many businesses remain confident in their own trading prospects, and the increase in hiring intentions suggests more employers want to grow their workforce,” Lloyds economist Hann-Ju Ho said.

The survey was based on responses from 1,200 British companies with annual sales of more than 250,000 pounds ($324,575.00) and was carried out between Oct. 1 and Oct. 15.

Two surveys published last week also showed a drop in optimism among businesses.

Reeves’ budget announcement on Wednesday is likely to include an array of revenue-raising changes, including possibly higher social security payments by businesses.

($1 = 0.7702 pounds)

(Except the headline, this story has not been edited by Firstpost staff.)