LONDON (Reuters) – British business confidence fell to a four-month low in October ahead of the country’s up-to-date government’s first budget plan, a survey showed on Monday, repeating other signs of business nervousness over possible tax rises.

Lloyds (LON:) Bank’s business barometer – which is the difference between the percentage of companies with positive and negative views – fell 3 percentage points to +44%.

However, companies were more sanguine about their own prospects than those of the broader economy – which hit their lowest level since March – and the overall index remained above its long-term average.

“Many companies remain confident about their trading prospects, and the increase in willingness to hire suggests that more employers are looking to expand their workforce,” said Hann-Ju Ho, an economist at Lloyds.

The survey was based on responses from 1,200 British companies with annual sales exceeding £250,000 ($324,575.00) and was conducted between October 1 and 15.

Two surveys published last week also showed a decline in optimism among entrepreneurs.

Reeves’ budget announcement on Wednesday is likely to include a number of revenue-boosting changes, including possibly higher National Insurance contributions by businesses.

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