UK business confidence highest for three years A survey by the Institute of Directors (IoD) reveals business confidence is at its highest for three years. The poll of members following the election recorded the IoD’s main confidence measure at 21%, up from -18% in November and the highest figure since the 2016 EU referendum. However, concern over the long-term relationship between the UK and the EU remains a cause for worry. Tej Parikh, the chief economist at the IoD, said: “Britain’s directors will be entering 2020 with a little more festive cheer than might have been expected only a few weeks ago.” A net balance of 18% expected their investment levels to increase, but higher costs were also predicted. The IoD said Conservative pledges to reform business rates and expand the R&D tax credit regime helped boost sentiment. Brexit-backing regions reported the strongest rise in confidence., hitting 71% in the North East of England and 40% in the West Midlands compared to 11% in London.