This was particularly evident in September when the economy contracted by 0.1%.
Ben Jones, lead economist at the CBI business group, said firms had widely reported “a slowdown in decision making” prior to the Budget. He added that once it had been announced it had “set off warning lights for business”.
The government is facing a backlash by some businesses who have criticised the tax rises in the Budget.
The increase in National Insurance Contributions for firms together with other measures “is expected to trigger a more cautious approach to pay, hiring and investment”, Mr Jones said.
